LONDON: Domino's Pizza Group, Britain's biggest pizza delivery company, said on Thursday (Oct 17) it will exit its international markets, where it has been facing mounting losses.

Outgoing CEO David Wild said in a trading statement on Thursday that the performance of Domino's Pizza's international business was "disappointing".





"Over the past six weeks we have completed a review with external consultants, assessing each of our four international markets and the future prospects for our businesses," said Mr Wild.

"We have concluded that, while they represent attractive markets, we are not the best owners of these businesses. The board has therefore decided to exit the markets in an orderly manner."



The company, which is a franchise of US-based Domino's Pizza, said third-quarter group system sales rose 3.4 per cent to £313.5 million (US$400.15 million) on strong demand in the UK and Ireland.

The British company owns Domino's operations in Switzerland, Iceland, Norway and Sweden, and is a minority shareholder in the Germany operations as well.



However, it reported a 2.7 per cent dip in international system sales, which have taken a hit from macroeconomic events, including declining tourist numbers in Iceland.

Europe's economy has slowed this year as US China trade tensions weakened global growth, and consumers and businesses in and around the United Kingdom worried about the impact of Brexit on jobs and incomes.

The company, which has 57 stores in Norway, said it had implemented a turnaround plan in the country during the quarter, but early signs have been mixed and improvement in sales were weaker than expected.

The decision to exit these markets comes a few months after the company announced the retirement of its CEO, while trying to resolve a profit sharing row with disgruntled franchisees in the UK and Ireland.

On Tuesday, Domino's Pizza shares plunged 6 per cent, hurt by growing competition from third-party delivery services and small pizzerias.

Domino's is one of the largest chains to stay off third-party delivery apps, as more restaurant chains become heavily dependent on meal-delivery companies to boost sales at the cost of lower profit margins.

