Domino’s Pizza Group reported a slight rise in third-quarter sales on Tuesday, helped by price increases and new menu launches, but cautioned that sluggish consumer demand is likely to

persist into 2026.

Concerns over potential tax hikes in Finance Minister Rachel Reeves’ upcoming autumn budget have weighed on household spending, adding pressure to an already strained fast-food sector. The company cut its profit outlook in August after being hit earlier this year by higher taxes and wage costs.

The operator of the Domino’s brand in the UK and Ireland posted a 1% increase in like-for-like system sales for the quarter ended Sept. 28, reversing a 0.7% decline in the previous three months. But total orders fell 1.5%, with delivery volumes down 3.4% as consumer sentiment remained fragile.

Domino’s said franchisees have raised prices selectively while offering value-focused deals to offset rising labour and tax expenses. The weaker quick-service restaurant market and reduced discretionary income continued to squeeze results.

Despite headwinds, the company reaffirmed its full-year underlying profit guidance of £130 million to £140 million and said it remains on track to open around two dozen new stores by year-end.

Shares in the London-listed group, down nearly 40% so far this year, slipped another 1.7% in early trading.

“Some initiatives are paying off—particularly new products and improved service,” analysts at Peel Hunt said, adding that stronger like-for-like sales and faster store expansion could emerge in 2026 if economic conditions stabilize. Photo by Stephen Sweeney, Wikimedia commons.