The Group was down 5% with the announcement of a £24m, 75% stake.
Companies: Domino's Pizza Group
Dominos Pizza Group (LON: DOM) announced a new franchisee partnership today, which aims to "take advantage of the significant growth opportunity in the London area". The £24m, 75% stake in a newly formed company whose assets will consist of all the franchisee's operations - 25 existing Domino's stores in London. The transaction is subject to final contract and is expected to be finalised next month.
In July Domino's reported H117 revenue of £547m which, while a 10.5% increase on last year, represented a slowdown on the 17% growth seen in H116. Pre-tax profit rose 9% to £44.6 million and EPS also rose 9% from the same period in 2016.
The Group has been busy investing in technology and has recently signed an agreement with Amazon Echo that will enable voice ordering for customers as it looks to boost sales.
The market reacted adversely to the announcement of a franchisee partnership this morning, with shares trading down 5% and currently sitting down around 4%.