Domino’s reaffirms 2025 forecast, launches new share buyback

Domino’s Pizza Group PLC said on Monday it would maintain its full-year 2025 targets and unveil a £20 million ($27m) share buyback plan after reporting resilient first-half trading. 

In a quarterly trading update, the UK-listed pizza delivery chain confirmed it expects to meet its earnings guidance for 2025, despite cutting profit forecasts last month due to higher costs .  The board attributed the confidence to strong sales momentum and operational efficiencies. 

Domino’s announced a new buyback programme worth £20m, aimed at returning excess capital to shareholders after the stock rallied this year.

CEO Andrew Rennie noted that consumers are adjusting to higher prices.  “We continue to see customers tightening their purse strings amid persistent inflation,” he said, echoing market reports of cautious spending .  The company added that it plans to raise menu prices modestly to offset rising wage costs and a jump in national insurance contributions, measures it announced last quarter.

Analysts at Peel Hunt forecast that like-for-like sales should improve in the second half, helped by Domino’s loyalty programme rollout, the FIFA World Cup, and expectations of milder weather.

Domino’s shares, which have climbed with the broader market’s recovery, initially dipped on the news of the buyback – typically seen as a prudent move – but later rebounded.  Investors applauded the retained guidance in a challenging consumer climate.  “The fact that Domino’s can hold its profit forecast shows the resilience of its delivery model,” commented one London-based analyst. 

The market now expects the group to leverage its strong brand and technology investments to navigate the economy.  Domino’s reaffirmation of its 2025 outlook and capital return signals confidence that the business can offset cost pressures, a key concern for restaurant and retail chains globally.