# UK’s Domino’s expects tech investments to hit 2023 profit
Published: 2023-03-09
Category: Headlines
Category URL: https://brandsjournal.com/category/headlines/
Meta Title: Domino's Pizza Group profit hit by cloud investments
Meta Description: Domino's Pizza Group Plc's profit forecast affected by new cloud-based technology investments, causing shares to drop 8%. Learn more here!
URL: https://brandsjournal.com/uks-dominos-expects-tech-investments-to-hit-2023-profit/

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(Reuters) -Britain’s Domino’s Pizza Group Plc said on Thursday its [profit](https://brandsjournal.com/electrolux-swings-to-operating-profit-in-q2/) this year would be impacted by [investments](https://brandsjournal.com/germany-needs-325-billion-of-power-grid-investments-by-2050-kfw-says/) in cloud-based technology platforms, sending its shares down more than 8%.

The company said it expects underlying core profit this [year](https://brandsjournal.com/euro-zone-aug-producer-prices-edge-up-month-on-month-as-expected-plunge-year-on-year/) to be within market expectations, excluding about 9 million [pounds](https://brandsjournal.com/britains-co-op-profit-slides-after-petrol-forecourt-sale/) ($10.69 million) to be incurred in costs from investments in two new cloud-based IT systems.

Brokerage Jefferies, however, said the outlook including investment costs implied a 7% decline from the group’s market forecast of 137.6 million [pounds](https://brandsjournal.com/britains-co-op-profit-slides-after-petrol-forecourt-sale/) for 2023.

Domino’s reported 2022 underlying core [profit](https://brandsjournal.com/electrolux-swings-to-operating-profit-in-q2/) of 130.1 million pounds, compared with 136.4 million pounds in the previous [year,](https://brandsjournal.com/euro-zone-aug-producer-prices-edge-up-month-on-month-as-expected-plunge-year-on-year/) affected by the technology [investments,](https://brandsjournal.com/germany-needs-325-billion-of-power-grid-investments-by-2050-kfw-says/) higher costs and food inflation.

Shares of London-listed [Domino’s,](https://brandsjournal.com/uks-dominos-pizza-group-names-new-ceo/) a franchisee of U.S.-based Domino’s Pizza Inc, was down 8.2% at 0900 GMT. ($1 = 0.8426 pounds)

($1 = 0.8421 pounds)

(Reporting by Muhammed Husain in Bengaluru; Editing by Savio D’Souza and Devika Syamnath)


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