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(Sharecast News) - Master franchise Domino's Pizza Group reported a solid first half performance on Tuesday, with stronger sales, higher earnings and a sharp improvement in free cash flow, while also continuing to gain market share across its key categories.
Domino's said H1 likeforlike sales rose 4.9% and orders increased 1.6%, helped by growth in both Pizza and its CHICK 'N' DIP offerings and a boost from the World Cup. Underlying earnings climbed 3.6% to 66.2m, reflecting the strong trading performance, while underlying free cash flow jumping 74.9% to 50.2m on the back of higher earnings and improved working capital.
Underlying basic earnings per share rose 4.8% to 8.8p, while the group lifted its interim dividend by 2.8% to 3.7p per share.
Domino's said it continued to win market share in Pizza, Chicken and QSR, maintained industryleading delivery times of under 25 minutes, and successfully launched its CHICK 'N' DIP and the Italiano's Pizza range. It also opened 11 stores, reaching its 1,400th location.
As far as recent trading was concerned, Domino's reported a positive performance for July, again helped by the World Cup, and said it remains confident in meeting fullyear expectations, with all major cost lines hedged for FY26 and into FY27. Management added that its strategic plans gave it confidence in driving earnings growth into FY27 and beyond.
Chief executive Nicola Frampton said: "We have delivered a strong first half, with positive momentum across sales, orders, earnings and cash flow. Pizza remains at the heart of our business, with Italiano's reinforcing the strength of the category, while the early performance of CHICK 'N' DIP gives us confidence in our ability to grow chicken alongside our core offer.
"We have carried positive momentum into July and, with our major cost lines hedged through 2026 and into next year, remain confident in delivering our full-year expectations."
As of 0900 BST, Domino's shares were 2.02% at 208.32p.
Reporting by Iain Gilbert at Sharecast.com
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