Domino’s Pizza Group ready to sell off European arm

Pizza deliveries giant Domino’s on Thursday said it will pull out of all international markets, in a move by the outgoing boss to let his successor focus on the difficult UK business.

David Wild revealed the sell-off alongside reporting overseas sales dropped 2.7% to £25.3 million in the 13 weeks to September 29.

The fall is the latest in a series of headaches for Wild, who announced retirement plans in August as the firm posted a slide in profits amid a bitter row with franchisees.

Wild is set to leave alongside chairman Stephen Hemsley next year once successors are found. He wants to clear the way for the next chief to focus on growth in the UK and Ireland.

Domino’s Pizza Group, which is separate from the US Domino’s business, will soon hire a corporate financial adviser to help sell its overseas operations in Switzerland, Iceland, Norway and Sweden. The division has about 90 shops.

The company entered Switzerland first a decade ago and has been in the other countries for about three years.

Wild said the costs of expanding abroad, coupled with high wage costs, have made it hard to make a profit overseas.

He added: “Whilst they represent attractive markets, we are not the best owners of these businesses.”

In Britain, the firm has been arguing with franchisees that want a greater share of profits, with some of the largest owners refusing to open new stores until their demands are met.

Wild said: “The situation is complex and we expect a resolution to take time, certainly into 2020. We remain committed to working with our franchisees to agree sustainable win-win solutions.”

Group third-quarter sales rose 3.4% to £313.5 million.

The shares put on 14.3p at 280.1p.