Stock spotlight: Domino's benefits from wider delivery boom but investors split on firm's future

Investors divided on whether the firm can hold its ground

James Baxter-Derrington
clock • 4 min read

Domino’s Pizza Group Plc – the overarching company which operates and licenses the brand’s restaurants across the UK and Ireland – was one of the many beneficiaries of the food delivery boom spurred by the pandemic, yet investors remain divided on whether the firm can hold its ground or will be squeezed out of the market.

During the market crash of 2020, Domino's suffered a much smaller drawdown than the rest of the FTSE 250, with the firm losing just 17% from the beginning of the downturn to its nadir, compared with the index's 40% collapse, according to data from FE fundinfo. This, combined with the general consensus of the strength of the food delivery market, means the stock reached an all-time high this summer and still stands 14% higher than when it entered the pandemic, despite its recent decline. Another boost to the company came from "admitting its mistake" as it withdrew from a failed interna...

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