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International pizzas to go as Domino's culls overseas arm

Domino’s will exit the businesses in Norway, Sweden, Germany, Iceland and Switzerland in an 'orderly manner'.

Domino's Pizza -
UK sales are still going well

Domino’s Pizza Group PLC (LON:DOM) shares picked up 6% as it announced plans to sell or close its operations in Scandinavia and Northern Europe.

After a review, Domino’s will exit the businesses in Norway, Sweden, Germany, Iceland and Switzerland in an "orderly manner".

International sales declined 2.7% to £25.3mln in its latest quarter, though sales overall rose by 3.4% as the UK business shrugged off the ongoing dispute with its major franchisees.

The pizza chain has been locked in a fractious row for months over the split of profits.

Chairman Stephen Hemsley and chief executive David Wild have already agreed to step down to help resolve the row.

Processes are underway to find replacements for both Domino’s said today, while it also announced the appointment of Elias Diaz Sese as a new non-exec.

Sales in the three months to September were £313.5mln with the UK chipping in £288.2mln, a 3% rise on a like-for-like basis.

“Although the impasse with the UK franchisees is ongoing, the decision to exit the losing-making international markets in an orderly manner releases one of the constraints on the share price,” said Peel Hunt.

Quick facts: Domino's Pizza Group PLC

Price: 289 GBX

LSE:DOM
Market: LSE
Market Cap: £1.34 billion
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