Domino’s sales rise as new menu ranges lift order values

Domino’s Pizza Group has reported a 2.3% rise in third-quarter like-for-like sales, with its Italianos pizza range and Chick ‘N’ Dip fried chicken products helping to increase order values. The group, which franchises more than 1,400 stores across the UK and Ireland, maintained its full-year expectations in the trading update reported by RTÉ on 21 October.

Menu additions support quarterly growth

The latest results put menu development at the centre of Domino’s sales performance. The company attributed the rise in like-for-like sales to demand for its Italian-style pizzas and fried chicken products, which boosted the value of orders.

That distinction matters when interpreting the headline growth rate. Higher order values are a different measure from higher order numbers: the reported uplift should not be read as an equivalent increase in customer visits or delivery orders. The company’s explanation focuses on what customers were spending on their purchases.

For Ireland’s franchise community, the update offers a practical example of how changes to a familiar brand’s menu can contribute to sales growth. In this case, both a pizza range and a chicken offering featured in the company’s account of its quarterly performance, rather than growth being attributed solely to its established core products.

World Cup boost continued into late summer

Domino’s said the football World Cup at the start of the quarter helped sales. According to the company, that momentum continued into August and September, extending beyond the initial sporting boost.

Total system sales rose 3.5% in the three months to 30 September. This measure covers sales across both franchised and corporate outlets, giving a broader view of trading across the network than the like-for-like figure alone.

The two growth rates describe different aspects of the business and should be kept separate. The 2.3% figure is the reported quarterly like-for-like increase, while the 3.5% figure is the rise in total system sales. Neither is a measure of franchisee profit.

The timing also provides useful context. Domino’s linked the start of the quarter to a major sporting occasion, but said the sales momentum carried through the following two months. Its account therefore points to a quarter supported by both event-related demand and the appeal of its newer menu ranges.

Year-to-date performance ahead of analyst expectations

Year-to-date like-for-like sales growth stood at 4%, ahead of the 3.5% expected by Peel Hunt analysts, according to RTÉ’s report. That comparison concerns the year-to-date result, not the third quarter in isolation.

The quarterly like-for-like growth rate of 2.3% was below the year-to-date rate. Both figures nevertheless showed sales growth, and Domino’s maintained its full-year expectations alongside the update.

These are UK and Ireland group figures, so they should be understood as a network-level trading picture rather than an Ireland-only performance measure. Their relevance locally comes from Ireland’s place within that franchise network.

For prospective franchisees and existing operators, the distinction between sales measures is particularly important. System sales indicate the scale of customer spending across outlets; they are not interchangeable with the revenue or earnings retained by the parent company, or the financial return achieved by an individual store.

Fixed major costs underpin earnings outlook

Alongside the sales figures, Domino’s said major costs were fixed for fiscal 2026 and into fiscal 2027. The company said this gave it confidence in delivering earnings growth in fiscal 2027 and beyond.

The wording is significant: the statement concerns major costs, rather than a claim that every operating expense is fixed. It is also a group outlook, not a guarantee of earnings growth at each franchised restaurant.

Taken together, the update combines three elements: menu-led increases in order values, sales momentum continuing through the quarter, and greater visibility over major costs. Those are separate considerations when assessing the health of a franchise business, even when they appear in the same trading announcement.

Practical takeaway: Irish franchise operators assessing the results should separate order values, like-for-like sales, system sales and profit. Domino’s update shows why sales growth and cost visibility need to be considered together, rather than treating a single headline percentage as the whole picture.