Investors are losing their appetite for pizza delivery chain Domino’s (DOM) as like-for-like UK sales slow in the first nine weeks of 2017.
Sales in the UK are up 1.5% over the period, which is significantly lower than 10.5% over the same period in 2016.
It also acquired Norwegian pizza operator Dolly's Dimples for £4m.
In October, Shares reported on Domino's slowing sales, which is becoming more concerning for investors as it suggests the worrying trend may continue.
The market is keen to sell, causing the stock to plummet 17% to 327p.
WHY ARE SALES SLOWING?
Broker N+1 Singer analyst Sahill Shan is cautious as heightened competition from Pizza Hut, market softness and Domino’s promotion over the winter period was relatively unsuccessful.
He believes the shares will come under pressure thanks to the soft start to the year.
Canaccord Genuity analyst Nigel Parson is more upbeat, highlighting expansionary sales will be essential to drive profit.
Domino’s aims to double its store count, excluding Germany, in the next decade to 2,000 stores.
The UK accounts for 80% of its growth, where Domino’s aims to double its stores in London.
Management have recommended a 15.6% rise in its dividend from 6.92p to 8p in the year to December 2016.
