Domino's UK bets on fried chicken as food sector frets over 'peak pizza'

By Yamini Kalia

March 10 (Reuters) - Domino's Pizza DOM.L said on Tuesday it is betting on fried chicken to fuel fresh growth in Britain, adding that demand for its pizzas had begun well this year and it gained market share.

Concerns over slowing demand, subdued consumer spending and rising costs weighed on Domino's UK profit and shares in 2025.

"We might not be at 'peak pizza' but the company will certainly have to find a way to turn innovation into profit growth," Robinhood UK analyst Dan Lane said after Domino's UK reported a 1.5% rise in system sales in 2025.

The company, which operates under the umbrella of U.S.-based Domino's Pizza DPZ.O in Britain and Ireland, said it had rolled out its Chick ’N’ Dip fried chicken range last month, making it available across all stores, online channels, apps and major delivery aggregators after a successful trial.

Shares in Domino's rose more than 5%, despite a 15% drop in annual profit, as it said strong Christmas trading momentum had carried over into this year.

Lane said Domino's will have to tread carefully with its new chicken brand in Britain, noting that Greggs GRG.L has shown how difficult it is to preserve brand identity amid a flurry of new launches.

The pizza industry has struggled with slowing demand, with even Domino's in the U.S. relying on heavy promotions to beat sales estimates and Yum Brands exploring options for Pizza Hut.

Domino's UK, which has introduced healthier pizza options, including lower-calorie pies, plant-based options and lighter bases, said its share of the pizza takeaway market rose 7.5 percentage points to 52.6%, citing Worldpanel by Numerator data.

The pizza chain, which saw several senior executives, including its CEO and finance chief, leave last year, said underlying core profit for 2026 is on track to meet market expectations.

($1 = 0.7436 pounds)