The UK’s biggest pizza delivery firm Domino’s has warned it no longer expects to break even in its international business this year after being hit by weak sales across Europe, although demand remains high in Britain and Ireland.
International sales fell 2% to £25 million for the quarter ended March 31. Its 2018 profit was dented by a slowdown in overseas markets, as fourth-quarter sales in some countries were hurt by unseasonably warm and dry weather.
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But it reported a 4.5% rise in group sales to £324.4m for the first quarter on the back of strong demand for its pizza across UK and Republic of Ireland, which account for 90% of its business
Domino's chief executive officer David Wild said: “Internationally, performance remains disappointing and trading visibility is limited ... we are therefore further tightening our focus on international costs and capital deployment.”
The company has been focussing on its online and overseas businesses, but has struggled to control in-store costs.
Domino’s has also been negotiating with international franchisees on terms, as labour cost pressures add to rising inflation and sales growth remain subdued.
The group added it remains in an "open and ongoing dialogue" with UK franchisees amid an escalating row with disgruntled store operators.
