Domino's Pizza doesn't expect to raise prices further

While the costs of some ingredients have consistently declined in the last few months, high meat prices still pose a challenge for the pizza group.

Shares in Domino's Pizza climbed 8% as the British and Irish food chain delivered group revenues of almost £333m (€388m) in the first six months, and said it does not expect to further hike prices at this time.   

The company has a total of 1,288 franchised and corporate-owned outlets in Britain and Ireland and has set out plans to open more stores. It is, in turn, a franchisee of the US-based firm. 

It also said it does not expect to raise its prices further because the cost of cheese and pizza boxes are starting to stabilise, and forecast its full-year profit would beat market expectations. The group, which had raised prices over the last year to offset surging inflation in Britain, does not plan to hike prices "right now", interim chief executive Elias Diaz Sese said. 

While the costs of some ingredients have consistently declined in the last few months, high meat prices still pose a challenge for the pizza group, Mr Diaz Sese said. A recent fall in the price of ingredients such as cheese and avocado has helped drive up profit margins at major US fast-food restaurant chains like Domino's and McDonald's.

Domino's Pizza Group now expects an underlying core profit of about £132 to £138m for the full year. The company also noted the Vat rate for hot takeaway food in Ireland will rise back to 13.5% at the start of next month.

 Irish Examiner and Reuters