Domino's Pizza PLC (LON:DOM) has strongly refuted press reports suggesting the company has been misleading investors about progress in negotiations with the pizza chain's franchisees.
According to the Sunday Times, the FTSE 250-listed firm received a letter before its results last week from the Franchisee Association warning that comments suggesting a resolution to an ongoing dispute could be found were "extremely misleading".
READ: Domino's Pizza profits hit by growing pains in 2018 but recovery expected this year
The newspapers said a group of store owners were said to have written in the letter that chief executive officer David Wild and the franchisees were "at total odds".
Domino's franchisees are currently in a row with the company's top executives, refusing to open more stores as they call for a greater share of the profits.
In a brief statement on Monday, however, Domino's said that it “strongly refutes the reported allegations.”
It added: “The Company has been clear and transparent that it has been in commercial discussions with franchisees, which are continuing.”
About 90% of the 67 store owners are members of the Domino's Franchisee Association, which says their share of profits has dropped to 50% from 61% over the past four years, the Sunday Times report said.
In early morning trading, shares in Domino’s Pizza were up 0.6% at 232.10p.