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Investing.com -- Shares of Domino’s Pizza (NYSE:DPZ) fell by 2.3% following the release of its first-quarter trading update.
The pizza chain reported system sales of £393.3m with like-for-like (LFL) sales excluding splits rising by 0.5%. Despite an increase in system sales by 2.1% and total orders by 0.5% during the quarter, the company’s stock experienced a downturn.
In the first quarter, Domino’s opened four new stores and indicated that 26 new locations are either under construction or have planning approved. However, the company acknowledged that the environment has become more uncertain since its full-year results, though it noted a minimal direct tariff impact.
The group also highlighted progress in its loyalty scheme, which is expected to be fully rolled out by FY26, and stated that current orders and LFL are positive at the start of the second quarter.
Domino’s Pizza expects its full-year underlying EBITDA to align with market expectations, which are around £147.4m.
However, the slow pace of new store openings in the first quarter has been noted as a potential risk to the company’s guidance of opening "in excess of 50" stores for the year, a target that RBC suggests remains attainable given that new openings are often weighted towards the second half of the year.
RBC commented on the update, stating, "There is reassurance from the group guiding in line for the full year, though we do flag the slow new store opening environment in Q1, which does present a risk to the ’in excess of 50’ guidance. We would add though that new openings are often H2 weighted and there is still plenty left to play for in the year."
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