The firm reported a 22% plunge in annual pre-tax profits to £61.9m for the year to December 30. 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 £93.4m 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.
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. Chairman Stephen Hemsley said the company was “determined to improve operational and financial performance in our international businesses, and ensure a smoother relationship with some of our franchisees”.
Domino’s said it was “conscious” of the price pressures for franchisees and that it was confident of resolving the conflict.
