Domino’s Pizza to claw back inflation with upsized offerings

The chief executive of Domino’s Pizza says food inflation is on the rise and same-store sales growth is likely to be lower this year than the group’s medium-term forecasts, but the group will steer clear of pushing through broad-brush prices rises for its core range of pizzas.

Don Meij said Domino’s is instead bringing out new ranges of higher-priced premium products which will allow the group to offset the higher cost of inputs such as cheese and meat, but still make the customer feel as though they are getting value.

“It’s the customer’s choice, and they are lifting their basket,” Mr Meij said on Wednesday.

“What we’re not doing is putting our prices up for the same product,” he said.

But the slowing growth outlook and rising inflation spooked investors again on Wednesday, with Domino’s shares sliding 11 per cent in early trading to $89.08. The stock was at $164.98 on September 15 and has now lost 46 per cent of its value since then.

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