NewsStocksDomino's Bets on Fried Chicken as World Cup Drives Revenue Higher

Domino's Bets on Fried Chicken as World Cup Drives Revenue Higher

Author: City AM Markets·

Key Takeaways

  • Domino's Pizza Group reported a six per cent revenue increase to £825m for the first half of the year, while pre-tax profit remained unchanged at £41m.
  • Like-for-like sales grew 4.9 per cent, surpassing the three per cent forecast by Peel Hunt analysts.
  • Fried chicken now accounts for approximately nine per cent of total sales, up from 7.5 per cent before the 'Chick'n'dip' range was introduced.
  • During England's World Cup match against the Democratic Republic of Congo, Domino's processed an additional 45,000 orders, marking its busiest game of the tournament.
  • The company opened 11 new locations in the first half, expanding its total UK estate to 1,400 stores, despite its share price having declined by more than half over the past five years.
Domino's Bets on Fried Chicken as World Cup Drives Revenue Higher

Domino's Pizza Group, the UK's largest pizza delivery operator by store count, has reported a World Cup-fuelled lift in half-year revenue, aided by its strategic push into fried chicken as the FTSE 250 delivery chain seeks to attract new customers and diversify beyond its core pizza offering.

The company said revenue rose six per cent to £825m in the six months to June, driven by the tournament and its newly launched 'Chick'n'dip' range. Pre-tax profit remained flat at £41m.

Like-for-like sales climbed 4.9 per cent, comfortably surpassing the three per cent growth forecast by stock brokers Peel Hunt.

Chief executive Nicola Frampton reaffirmed the company's commitment to expanding its fried chicken category: "Our growth platforms – chicken, loyalty, aggregators and supply chain productivity – are gaining traction and support our confidence in delivering sustainable long-term growth."

Leadership change and strategic direction

Domino's Pizza experienced rapid growth in Britain during the 1980s, but the chain has since faced intensifying competition from pizza specialists such as Franco Manca and Rudy's, as well as from the expanding fried chicken sector, where US brands including Popeyes and Wingstop have been steadily building out their UK footprints in recent years.

Frampton, who served as interim chief executive before being appointed to the role on a permanent basis in March, said the performance of the new chicken range "gives us confidence in our ability to grow chicken alongside our core offer."

Her predecessor, Andrew Rennie, stepped down in November of last year. Just days before his departure, Rennie had stated that there was not "massive growth" remaining in the UK pizza market.

Rennie's push into fried chicken had drawn concern from investors wary of the company drifting from its core business. The group had previously explored a deal for US chicken chain Wingstop before it was acquired by American investment firm Sixth Street in 2024.

The 'Chick'n'dip' range, alongside the thin-base Italianos line, is drawing in customers who "perceive both products as healthier propositions," the company told shareholders.

Chicken now represents approximately nine per cent of total Domino's sales, up from 7.5 per cent when the range was introduced.

World Cup and marketing campaigns lift orders

Domino's already serves 14m UK customers, but Frampton said the chain is continuing to invest in marketing to expand its consumer base.

"In the first half, campaigns around the Tyson Fury fight and the World Cup recruited new customers while also increasing frequency among existing customers," the firm said.

During England's round-of-32 match against the Democratic Republic of Congo, Domino's processed an additional 45,000 orders, making it the chain's busiest game of the tournament.

The London-listed company operates as the franchisee for the Domino's brand in the UK and Ireland, with the majority of its store network managed by franchise partners. Frampton's reference to aggregators reflects Domino's strategy of expanding reach through third-party delivery platforms, complementing its own ordering channels.

The group opened 11 new locations in the first half, bringing its total UK estate to 1,400 stores.

Domino's shares have declined by more than half over the past five years.