The Domino Effect: Can This Pizza Giant Continue To Deliver Success?

June 3, 2019

With some reported sales figures as flat as its famous pizzas, Domino’s announced this month that its U.K orders have fallen (for the first quarter of this year like-for-like sales grew by 3.1%, but order volumes fell by 2.7%) and that for another year its international operations will remain loss-making.

This might be surprising news to many. Here in the U.K, the takeaway pizza market has been dominated by only 3 or 4 main players for more than a decade now, with Domino’s being one of the most well known and with branches on most suburban shopping streets across the U.K.

The first U.K Domino’s franchise branch opened in Luton in 1985 and the franchise network has seen a steady pattern of growth over the years, with just under 1,200 units now operating across the U.K

These recent figures will be another headache for Domino’s bosses, who are already facing a backlash from their U.K franchisees. Franchisees have become disgruntled at the franchisor’s decision to split geographical territories, resulting in new stores being less profitable. They are also face rising costs generally and as a result, franchisees have joined forces to demand an increased profit share. The Domino’s Franchise Association U.K and Ireland which represents around 90% of the UK franchisees, has stated that its members will not open any more U.K stores until the issues are resolved. And in a hugely public and embarrassing comedown, the pizza chain franchisor was forced to cancel its annual UK franchisee awards event last month when nearly all of the Domino’s UK franchise network said that they would boycott the event.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Chief executive David Wild said that the group is continuing an “open and ongoing dialogue” with its unhappy franchisees to look at ways in which to resolve the dispute without simply cutting the cost of the food supplied to stores, which of course would significantly affect overall group profits. He said: ‘We’re working with our franchisees to try and resolve their concerns, but we want to resolve their concerns by finding a win-win solution. We don’t want to resolve them by finding lose-win solutions.’

With all of this in-house turmoil to deal with, its not surprising that the pizza chain may be struggling to improve its numbers.

Dominos isn’t the only Italian casual dining chain here in the U.K to be feeling the heat. Whilst not a franchise, the Jamie Oliver Italian restaurant chain last week fell into administration with a loss of around 1000 jobs. Pizza chain Prezzo also announced last year a plan to close 100 restaurants U.K wide.

Related: Food Franchises – Search Franchise Reviews Directory

These financial troubles must in part be due to the widely reported change in casual dining habits – British consumers who are feeling the financial pinch or are Brexit-nervous either choosing not to dine out or order in but to cook at home, or using their treat night outs to sample more diverse cuisine experiences now on offer on the High Street. Pizza is also now no longer the most popular takeaway cuisine in the U.K, in third place behind Chinese and Indian food. Domino’s also faces considerable competition from independent takeaway businesses with the introduction of meal delivery services such as Deliveroo and Just Eat.

In light of all of the above, will Domino’s be able to weather the storm and remain at the top of the pizza game? It is trying to respond to customer demands, having recently introduced a new low calorie “Delight” range of pizzas, and rumor has it that a vegan pizza is in the offing. Whilst the dispute with U.K franchisees remains ongoing, Domino’s is focusing on perhaps happier overseas territories, installing a new management structure in Norway, Sweden and Switzerland where its operations have remained loss-making, and focusing on store level performance. Clearly lessons have been learned from experiences over here.

Related: Domino’s Pizza Franchise

What the Domino’s business journey to date shows us is that as a brand it is very self-aware. When customers criticized the very core of its business – its pizza recipe – it took the criticism on the chin and took the brave decision to completely scrap its existing offering and start from scratch again. They understand that their customers love them because of the convenience factor and have continued to use all technology available to improve convenience, speed and delivery for their loyal fans. So having demonstrated in the past that they are agile, customer focused and forward-thinking, there’s every reason to think that Dominos will be able to successfully navigate this particularly tricky chapter in its franchise story and continue to deliver pizza success right to our front doors.

By Fiona Simpson

Source: Forbes

Domino’s warns over overseas losses and sees UK row hit openings

May 8, 2019

Domino’s Pizza has warned over losses in its international arm and said it remains locked in discussions with UK franchisees amid an escalating row.

The pizza delivery company said it saw a “disappointing” performance in its international business, with “weak” system sales across all its overseas markets – down 2% on a reported basis to £25.1 million overall in the division.

Shares fell more than 6% as the group warned that it no longer expects to break even in the international business over the full year.

Sales fell as much as 8.4% in Switzerland. Its international operations also include chains across Iceland, Norway and Sweden.

It is now looking at cutting costs in its overseas arm, including looking at hours worked by staff, as well as its international head office operations.

Domino’s chief executive David Wild said: “Internationally, performance remains disappointing and trading visibility is limited.”

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

He added: “Given persistently weak system sales in all our international markets, we no longer expect this part of our business to break even this year.

“We are therefore further tightening our focus on international costs and capital deployment.”

In the UK, Domino’s reported a 3.1% rise in UK like-for-like sales for the 13 weeks to March 31 against a “challenging” market backdrop.

The chain said like-for-like orders by volume fell 2.7% in the UK, but this was offset by a 5.1% hike in prices.

Online sales lifted 8.5%.

It confirmed that store openings continue to be hit by the ongoing dispute with disgruntled store operators.

The group opened four new stores in the first quarter – compared with nine opened in the same period a year earlier.

Mr Wild said the group remains in an “open and ongoing dialogue” with its UK franchisees.

Domino’s is working to resolve a dispute with store operators, who have set up a group called Domino’s Franchise Association UK & Ireland, demanding more support from the company in the face of rising costs.

Related: Food Franchises – Search Franchise Reviews Directory

They also say Domino’s has asked them to open stores in existing locations, which they claim is affecting their profits.

He denied the group was in a stalemate with franchisees over the issue, but stressed the firm was “trying to find solutions that benefit both of us, rather than a loss of profit for us in order to boost profits for franchisees”.

Last month, Domino’s signalled that it was preparing for a change at the top as it revealed it was considering succession planning for Mr Wild and chairman Stephen Hemsley.

Mr Wild remained tight-lipped on the succession plans or timing, saying it is “what good boards do”.

Asked if he would still be in the role in a year’s time, he said: “I hope so.”

Steve Clayton, fund manager of the Hargreaves Lansdown Select funds, said: “Domino’s are struggling to make their international businesses fire on all cylinders.

“It is disappointing to see them losing ground in almost all of the areas that the group operates, outside of the UK and Ireland.”

Related: Domino’s Pizza Franchise

By Holly Williams

Source: Yahoo Finance UK

Domino’s Grabs Slice Of Irish Franchise

March 16, 2019

Domino’s Pizza Group, the operator of the Domino’s chain in UK and Ireland, is reported to have agreed a €12.5m deal to acquire a 15% stake in Shorecal, its biggest Irish franchisee.

According to The Irish Times, the Caldwell family will retain majority control of Shorecal, which operates nearly 30 Domino’s outlets in Ireland. It recently sold about a third of the business to the Bronfman family from the US, whose wealth was originally derived from the Seagram whiskey company.

Domino’s has stated that it wants to increase the number of franchised outlets in the Irish market from 50 to about 75 in coming years. Shorecal is planning open about 10 new Irish stores (of which six will be in the Republic) over the next four years.

Commenting on the deal, Domino’s Chief Executive David Wild said: “Shorecal came to us last year and told us they had been approached by a family office [Bronfman] to invest.

“The opportunity was for us to co-invest with the family office. We can see the benefits of this type of patient capital as a form of funding. We may want to do more of this in the UK.”

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Domino’s yesterday revealed mixed annual results with “growing pains” internationally hampering its overall financial results.

The group said its performance in international markets was worse than it had anticipated with its Swiss, Norwegian and Swedish businesses continuing to make losses. Performance was stronger in its main Domino’s UK and Ireland units.

“2018 was a mixed year. In the UK and Ireland, which account for around 90% of the business, we extended our excellent track record of growth and cash generation, responding well to the very challenging environment for the casual dining market,” said Wild.

Domino’s system sales climbed 9% to £1.3bn in the year to 31 December 2018. Like-for-like sales in its UK operation rose 4.6%, whilst Ireland saw a 4% rise.

Pre-tax profits dropped 24% to £61.9m. However, underlying profits, which exclude charges of £31.5m relating mainly to international impairments, UK supply chain transformation and integration costs, edged down only 1.1% to £93.4m.

The group said internationally it hopes to break even during 2019, while UK growth is expected to continue. Domino’s opened 81 stores across the group, of which 58 were in the UK. It stated that its UK “store pipeline” is similar to 2018 at the same time last year “although actual openings are likely to be lower than 2018 given ongoing franchisee discussions”.

Source: KamCity

Domino’s sees UK store openings hit by franchisee dispute as profits fall

March 13, 2019

Domino’s Pizza has posted falling annual profits and admitted store openings will be hit this year amid an escalating row with its franchisees.

The pizza delivery company said that, while its pipeline of new stores is set to hold firm in 2019, the actual number of openings is likely to be lower given “ongoing franchisee discussions”.

The news came as it posted a 22% plunge in annual pre-tax profits to £61.9 million after suffering “growing pains” in its international business.

£93.4 million
Domino’s underlying pre-tax profits for the year to December 30

The group said on an underlying basis pre-tax profits dropped 1.1% to £93.4 million for the year to December 30.

But shares lifted 6% despite the profit fall.

Domino’s is working to resolve a dispute with disgruntled store operators, who have set up a group called Domino’s Franchise Association UK & Ireland, demanding more support from the company in the face of rising costs.

They also say Domino’s has asked them to open stores in existing locations, which they claim is affecting their profits.

Domino’s said it was “conscious” of the price pressures for franchisees and that it was confident of resolving the conflict.

The group added that it recognises the “temporary” impact of new stores close to existing sites and has increased short-term relief offered to franchisees – paying out equivalent to around £75,000 per new store in 2018.

But chief executive David Wild said the group did not want to end the row simply by lowering the price of food it sells to franchisees, which would cut its own profits.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

He said: “We’re working with our franchisees to try and resolve their concerns, but we want to resolve their concerns by finding a win-win solution.

“We don’t want to resolve them by finding lose-win solutions.”

He cautioned that new store openings will be particularly impacted in the first half of 2019, but are set to pick up in the final six months amid hopes for the franchisee dispute to be resolved and an end to Brexit uncertainty.

Domino’s opened 59 stores in the UK and Ireland last year and now has a 1,100-strong estate.

The group’s results showed a mixed performance, with the woes in its international arm offsetting an otherwise robust showing from the UK and Ireland, where like-for-like sales rose 4.6%.

Domino’s warned in January that profits would be at the lower end of expectations following weaker international sales and business integration challenges in Norway.

But Mr Wild said he expects the international division to break even in 2019, after reporting underlying losses of £4.1 million in 2018, with Switzerland, Norway and Sweden all continuing to be loss-making.

Neil Wilson, chief market analyst for Markets.com, said: “The franchisee strife looks set to weigh on growth prospects as it will impact the store rollout in the UK and Ireland.

“Meanwhile there are also more challenges from competitors than before.

“Nevertheless, Domino’s seems to be holding onto market share and the app in particular is very sticky with customers.”

Source: Belfast Telegraph

Domino’s hurt as delivery firms offer more choice, shares fall 10 percent

February 23, 2019

Domino’s Pizza Inc missed analysts’ estimates for quarterly same-store sales on Thursday, sending its shares down 10 percent and underscoring pressures the company is facing from food delivery startups that are offering diners more choices.

The largest U.S. pizza chain has been investing in technology to simplify its ordering process and to cut delivery times to below 30 minutes but, like other fast-food chains, faces the threat from delivery “disruptors” such as GrubHub, DoorDash and UberEats.

“Investors will focus on the ongoing difficult U.S. compares… and the increased prevalence of delivery across the U.S. restaurant landscape, all of which are unlikely to subside near-term,” said Jeffrey Bernstein, an analyst with Barclays.

Same-store sales at Domino’s company-owned U.S. outlets rose 3.6 percent, the slowest pace in at least four years, while franchises posted a 5.7 percent growth in the fourth quarter, both well below Wall Street expectations.

Earlier this month, Yum Brands’ Pizza Hut reported no growth in same-store sales as stiff competition hit dine-in customer visits.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Domino’s same-stores sales were also impacted as New Year’s Eve – a key day for pizza sales – shifted from the fourth quarter to the current quarter.

The company’s strategy of adding stores in areas where it had a large presence likely skewed delivery sales towards the new outlets hitting same-store sale comparisons, analysts said.

“Same-store sales performance can certainly improve versus what we have all come to expect,” Chief Executive Officer Richard Allison said on a post-earnings call.

The company missed profit expectations for the first time in at least nine quarters as investments in technology led to a 15 percent jump in expenses in the last three months of 2018.

International same-stores sales growth also fell short of estimates, coming in at 2.4 percent compared with expectations of 4.14 percent. The company, which operates over 10,000 outlets in international markets, blamed weakness in some markets in Europe and the Pacific region.

Total revenue rose to $1.08 billion, but missed the average analyst estimate of $1.10 billion.

Shares of the Ann Arbor, Michigan-based company, which have gained about 12 percent since the start of the year, were down 9.7 percent at $251.61.

Source: UK Reuters

Domino’s sells more than 500,000 pizzas in record UK trading day

January 29, 2019

Domino’s sold more than 535,000 pizzas in the UK on the Friday before Christmas – equivalent to 12 a second over a 12-hour trading day – but a weaker international performance has forced the company to slice its profit guidance.

The strong run-up to Christmas helped group sales to rise by 5.5% year on year to £339.5m in the 13 weeks to 30 December, it said in a trading update published on Tuesday. Sales growth was driven by its Republic of Ireland operations, where like-for-like sales rose by 7.5%.

Domino’s particularly benefited from days when Britons had reason for a big night in. It credited the final of the BBC’s Strictly Come Dancing on Saturday 15 December for a new online record, with sales up by a quarter compared to the same day the year before.

The overall sales record came on the Friday before Christmas, 21 December, the day traditionally known as “Mad Friday” or “Black Eye Friday” for revellers getting into the festive party spirit. Though the record Domino’s sales that day suggests people may be staying home more now.

However, the FTSE 250-listed company’s efforts to expand to new markets after fast UK growth stumbled during the quarter. International sales fell by 2% year on year to £26.6m.

David Wild, the Domino’s Pizza Group chief executive officer, said the international operation had experienced growing pains this year.

The company suffered “business integration challenges” in Norway in particular, he said. Sales also fell in Switzerland and Iceland.

The weaker international performance prompted Domino’s to guide that its full-year underlying profit before tax will be at the lower end of analysts’ expectations of between £93.9m and £98.2m. The company also said that investment in central functions would dent short-term profitability.

Shares in Domino’s fell by almost 7% on Tuesday to 255p. The company’s shares were worth more than 380p as recently as June, before the international struggles dented summer profits.

Domino’s, originally an American brand, opened its first UK outlet in 1985, before the British and Irish franchise was bought out in 1993.

The company sold almost 90m pizzas last year in the UK, but its addition of 59 stores during the year to the more than 1,200 it already ran was significantly below its plans at the start of the year.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

On Tuesday Domino’s reaffirmed its long-term target of 1,600 stores in the UK, but did not give guidance on how many it expects to add in the coming year, prompting some concerns among City analysts.

Domino’s also continues to face pressure from franchisees for an increased share of profits, which some investors believe could weigh on future growth in the UK.

Competition is increasing rapidly in food delivery, with Domino’s facing pressure from companies such as Just Eat, Deliveroo and Uber Eats, all of which enable rival pizza restaurants to offer home delivery. However, Domino’s is betting that its brand and record of profitability will enable it to fend off some of its newer competitors, many of which are still loss-making.

Wild said: “The UK delivered food market is vibrant and we estimate that it will grow at a compound rate of 8% a year to 2022. We aim to maintain our share of this market.”

Source: The Guardian

Domino’s Pizza shares fall 7% amid franchise row

December 12, 2018

Shares in Domino’s Pizza Group have dived 7% amid reports of an escalating row between the firm and its franchisees.

According to the Sunday Times, 11 of the company’s biggest franchisees have written to the board threatening to “declare war” on the firm unless they get a bigger slice of the company’s profits.

They warned they could stop opening new stores if their demands were not met.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Domino’s declined to comment.

In total the firm has about 70 franchisees to whom it supplies ingredients and other goods and services.

But the disgruntled operators, which have set up a group called Domino’s Franchise Association UK & Ireland, say they face rising costs and want more support from the company.

They also say they are being asked to open more sites in existing locations – something that benefits the wider company and customers but eats into their profits.

A record 95 new Domino’s stores were opened in 2017 – mostly by the biggest franchisees – but the firm is targeting a more modest 60 this year, in part because of the row.

Related: Pizza chain giant Domino’s is facing pressure over reports today that its relationship with its franchisees has worsened

It’s put pressure on the FTSE 250 firm’s shares, which are down by about a third since June. Some analysts believe Domino’s Pizza will be unable to meet a goal of having of 1,600 stores in the UK – up from the current 1,060 – while the conflict rumbles on.

Despite the market moves, sales at the group sales have been growing, climbing 6% to £303.3m in the third quarter.

The firm also continues to open stores despite a wider consumer spending slowdown driven by concerns about Brexit and a rise in inflation.

Source: BBC

UK’s Domino’s shares rise on buyback, organic sales rise

October 19, 2018

Domino’s Pizza Inc’s (DPZ.N) UK franchise Domino’s Pizza Group (DOM.L) launched a 25 million pound share buyback on Thursday after posting a 6 percent rise in organic sales due to a rise in website and app orders.

Domino’s shares rose as much as 8 percent after investors shrugged off comments that pointed to full-year pre-tax profit at the bottom of the company’s previous guidance range.

Much like its parent company, Domino’s UK franchise has been focusing on sales through online channels to fend off competition from app-based services like Just Eat (JE.L) and Deliveroo, which provide round-the-clock food delivery.

Online orders in Britain increased 11.4 percent in the quarter ended Sept. 30 compared to the previous year and accounted for 78.3 percent of all deliveries.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Domino’s, which has been investing in order tracking technology for its delivery business, said the system was now live in 603 UK stores, leading to more efficient labour management and a better customer experience.

The company also said its international operations, spanning Switzerland, Iceland, Norway, Sweden and Germany, would break even for the full year.

“Our businesses continue to trade well, despite the evident uncertainty among UK consumers, and hot weather across Europe for much of the quarter,” Chief Executive Officer David Wild said.

Domino’s said it would start its new share buyback immediately.

The company bought back shares worth 36.6 million pounds in 2017 and said in March that it expects to buy back 50 million pounds worth in 2018, completing 21.1 million pounds of it in the first quarter. It has not disclosed any purchases since.

Domino’s, which sells almost 90 million pizzas every year to customers around the UK, now expects pretax profit to be in the middle of a range of market expectations that it calculates as between 93 million and 99.6 million pounds.

That would point to profit close to the bottom of previous market estimates of between 95.9 million pounds and 101.4 million pounds, which the company said in August it would be in line with.

Shares of the company were up 5.3 percent at 274.4 pence at 0733 GMT.

Source: UK Reuters

Domino’s Pizza U.K.: A Safe 3.3% Dividend Yield With More Dividend Hikes Expected

October 14, 2018

Domino’s Pizza UK disappointed the market as its overseas division didn’t perform well due to increasing labor costs.

The situation should improve in the current semester.

The dividend is 100% safe and will very likely continue to increase.

After taking profits around the 350 pence level, I am getting increasingly interested in getting back in.

It has been approximately a year since my first article on Domino’s Pizza Group PLC (OTC:DPUKF) which holds the master franchise for Domino’s stores in the UK, Ireland and some countries on the European mainland. On top of that, the company also has a controlling stake in the owners of the master franchise agreements in Iceland, Norway and Sweden. So although the company’s name refers to Domino’s UK, the total reach is much wider than just the two islands.

Domino's Pizza

Source: Yahoo Finance

Whenever I’m talking about ‘Domino’s’ in this article, I am referring to this specific company and not the worldwide Domino’s Pizza (DPZ) listed on the NYSE. Domino’s UK obviously also has a listing on the London Stock Exchange, which is actually more liquid than the OTC listing (which makes a lot of sense). The ticker symbol in the UK is DOM, and the average daily volume in London is approximately 2.9 million shares per day (but this was due to a few very high volume days over the summer). The current market capitalization is 1.29B GBP.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

The share price weakness was caused by a shift in the H1 financial results

Domino’s reported decent financial results, but the market appeared to be a bit spooked by the increasing labor expenses in Norway which had a negative impact on the company’s financial performance as those increases could not be (fully) passed on to the customers. On top of that, the financial media also mentioned interest expenses increased compared to the first half of last year, but I don’t think this 0.5M GBP interest expense increase had a meaningful impact on the market’s perception. The difficult transition in Norway where Domino’s is converting Dolly Dimple places into Domino’s Pizza stores appears to be the main reason for the market’s panic reaction, which overlooked the CEO’s attempt to reassure the market as he stated the performance would improve in the second half of the year.

Source: Seeking Alpha

UK and Ireland deliver for Domino’s Pizza Group in first half

August 7, 2018

Domino’s Pizza Group issued its interim results for the 26 weeks ended 1 July on Tuesday, reporting a 12.3% year-on-year improvement in group system sales to £616.6m.

The FTSE 250 company, which holds the master franchise to the American takeaway brand in the United Kingdom, Ireland, Germany, Switzerland, Liechtenstein and Luxembourg, as well as minority interests in the franchises for Iceland, Norway and Sweden, said growth in the period had been driven by its UK operations, with its full-year outlook confirmed.

UK system sales were up 8.3%, with 22 new stores opened in the period, and 5.9% like-for-like growth reported.

Republic of Ireland sales were ahead 2.5%.

Domino’s Pizza Group also reported “strong” local currency international growth, with Switzerland up 13.0%, Iceland ahead 5.5%, Domino’s Norway surging 180.5%, and Sweden rising 56.4%.

Underlying profit before tax rose 2.5% year-on-year to £45.7m, with underlying basic earnings per share up 6.8% to 7.8p.

On a statutory basis, profit before tax was down 9.7% to £41.7m, with basic earnings per share falling 6.5% to 7.2p.

Statutory revenue was 22.6% higher at £259.1m.

Non-underlying expenses of £4.0m were reported, which related to merger and acquisition integration, and IT and supply chain transformation cash outflow, the board said.

Net debt stood at £182.1m, with the firm’s net debt-to-last 12 months EBITDA being 1.62x at period end.

The board declared an interim dividend of 4.05p, up 8.0% year-on-year, and following £38.9m of share purchases in the first half.

On the strategic front, Domino’s Pizza Group said it made a number of “digital investments” to support franchisee efficiency and drive customer engagement during the period, with GPS technology now in 603 UK and Republic of Ireland stores.

It said that was leading to “significant” labour efficiencies, with first half franchisee store profitability up 5.3%.

The firm was also planning investment in new e-commerce and app platforms, which it said would improve the customer experience further.

Domino’s Pizza Group also said it had a “strong operational focus” in its acquired businesses, with volume-driven growth up and staff turnover down in London.

Related: UK’s Domino’s shares rise on buyback, organic sales rise

In its international acquired businesses, the firm said labour cost issues affected the first half, with actions taken now coming into effect.

The company’s Warrington Supply Chain Centre was now operational, with production ramped to 130 stores.

Full year underlying profit before tax was expected to be in line with current market expectations, the board claimed.

Around 60 new UK stores were planned for 2018, with the company remaining “uncertain” on the timing of several of them, and an unchanged long term target of 1,600 new stores.

Total group capital expenditure for the year would be around £30m, the board said, with its £50m share purchase programme being completed.

“It’s been another good trading period for Domino’s,” said chief executive officer David Wild.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

“In the UK, despite continued consumer uncertainty, we’ve achieved further like-for-like growth by maintaining our clear focus on product, service and value for customers.

“Our ongoing investments in supply chain infrastructure and our IT platform will support future growth and customer engagement.”

Wild said Domino’s was “proud” to be one of the most successful franchise businesses in the UK, adding that it would continue to work with its franchisee partners to promote the brand and the strength of the system.

“Whilst our international businesses continue to make good progress with customers and sales, it has taken us some time to refine the operating model and cost base at store level, particularly in Norway.

“We are confident that the changes we have made will result in a better performance in the second half, and believe that these businesses offer significant long term growth potential as we export our expertise in digital, supply chain and franchisee management.”

The company’s board expected that full year underlying profit before tax would be in line with current market expectations, Wild added.

“Our confidence in the future is underlined by continued growth in the dividend, and our ongoing investment in our own shares through the buyback programme.”

Source: LSE