Domino's Poland drops as competitor advertising softens sales growth

Domino’s Pizza Poland’s shares dived on Wednesday as the company warned that a "softening" of like-for-like sales growth had continued into the fourth quarter.

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The AIM traded company, which operates the takeaway pizza giant in Poland, said that system sales had grown "substantially" over the year to date but have slowed down since the beginning of summer.

Sales performance has been hamstrung by the continuation of warm and dry weather into November, as well as sustained advertising spending by fast-food delivery competitors.

Furthermore, last year’s fourth quarter investment in top-line sales support has not been replicated this year as the company has instead focussed on balancing sales growth with enhanced store profitability.

“Despite the sales pressure, company EBITDA for 2018 is expected to be broadly in line with expectations, but we approach the year ahead with caution and believe that sales and EBITDA performance for 2019 will continue to be impacted by competition for share of voice,” said a statement from DP Poland.

DP Poland’s shares were down 27.66% at 17.00p at 1111 GMT.