Domino’s boss rules out bigger slice of the profits for chain’s angry franchisees

The boss of Domino’s on Tuesday ruled out overhauling how earnings are shared with franchisees.

Domino’s boss David Wild has been at loggerheads with franchisees, who have formed an association and threatened to open fewer stores unless they can keep more of the profits. Wild said Domino’s UK franchise network was “the most profitable” in the world and the board was “very happy” with the present framework. “We’re not planning to change that. We’re confident the structure is right.” He said franchisees can open more branches if they wish.

Revenues grew 5.5% to £339.5 million for the 13 weeks to December as more Brits gorged on pizza in the run-up to Christmas.

However, it admitted that “growing pains” in Norway, a new market for Domino’s, kept it back and underlying pre-tax profit would be at the lower end of the consensus between £93 million and £98 million this year. International sales were down 2% to £26.6 million. Shares fell 23.9p, or 8.7%, to 250p.

The fast-food chain’s store-opening plan is on track, with 10 new sites due in London this year. But some fear its expansion is not aggressive enough.