DP Poland: Strong trading momentum as franchise strategy accelerates

Dominos Pizza Poland is listed on the Aim market of the London Stock Exchange and has a market capitalisation of £70m. The company owns the Dominos master franchise for Poland and Croatia. There are currently 135 Dominos stores in Poland and 7 Dominos stores in Croatia. The company also owns the Pizzeria 105 brand with 70 locations and is in the process of converting these stores to Dominos.

Nils Gornall, CEO,  and Edward Kacyrz, CFO, presented the FY25 results at the latest Yellowstone Advisory webinar. A recording of the webinar can be found here

FY25 delivered another year of solid financial progress. Group system sales increased more than 10% to £61.4m, revenue grew 15%, and adjusted EBITDA rose almost 30% to £6.2m. This marks the fourth consecutive year of EBITDA growth and demonstrates that the strong sales momentum achieved over recent years is increasingly translating into profitability.

Trading has also started strongly in 2026. The first quarter delivered 9% like-for-like sales growth, the strongest quarterly performance for more than a year. Management noted that this was achieved despite difficult winter weather conditions in Poland, with the business maintaining average delivery times below 30 minutes while many competitors struggled to cope with demand. A strong summer with the backdrop of the football world cup should also boost sales.

A key attraction of the investment case remains the size of the market opportunity. Management believes Poland remains significantly underpenetrated compared with Western Europe and the UK. Using UK store density as a benchmark, they estimate the market could ultimately support more than 700 Domino’s stores versus the current 135 stores in Poland. The Polish pizza market is also forecast to grow around 6% annually through 2029, considerably faster than the wider European market.

The company’s transition towards a franchise-led model continues to make good progress. During FY25, DP Poland sold 17 corporate stores to franchisees, increasing franchise ownership to around one-third of the Domino’s network. Management expects more than half of the network to be franchised by the end of 2027, creating a more capital-efficient and scalable business model. Franchise development is currently running ahead of management expectations and this target could be reached sooner. It remains one of the company’s most important strategic priorities.

The conversion of Pizzeria 105 stores to the Domino’s brand has proved more challenging than expected. Management acknowledged that the pace of conversions has been slower than planned as franchisees adapt to Domino’s operational systems and service standards. However, the stores that have already converted are performing strongly, generating sales growth of nearly 30% compared with their previous performance. The company is now refining the conversion process and increasing support for franchisees to accelerate future rollouts.

Operational execution remains a major strength. Customer satisfaction has improved for four consecutive years, digital ordering now represents 77% of sales, and the Domino’s mobile app continues to be the fastest-growing sales channel, delivering 29% growth during FY25. Average ticket values increased by almost 5% during the year while order frequency remained stable, reflecting successful product innovation and customers trading up to premium menu items.

The company also completed a significant upgrade of its commissary facility, investing around £1m to increase capacity and improve efficiency. The enhanced facility is designed to support more than 300 stores from a single location and should help drive further margin improvements as the network expands.

Looking ahead, management expects EBITDA to remain in line with market expectations and believes double-digit system sales growth can continue. The strategy remains straightforward: grow the store network, increase franchise participation, improve operating efficiency and convert that growth into higher profits. With a strong start to 2026, improving store economics and substantial scope for expansion across Poland, management remains confident about the long-term growth opportunity.

A recording of the webinar can be found here.