Domino's trials Chick 'n' Dip chicken menu in bid to reverse share slide

Domino's Pizza Group said it will trial a new fried-chicken sub-brand called Chick 'n' Dip in 187 UK stores as the London-listed operator seeks to arrest a year-to-date decline in its market value.

The trial, announced Monday, will be run in stores across the northwest of England and Northern Ireland ahead of a planned national roll-out if the format performs as expected. The group said Chick 'n' Dip will offer "hot and crispy" chicken tenders, wings and boneless bites paired with nine dips "inspired by flavours from around the world," and that the concept can be delivered through its existing national supply chain and kitchens with "minimal capital investment."

Domino's framed the launch as a growth opportunity for its UK & Ireland business. Chief Executive Andrew Rennie described Chick 'n' Dip as "a bold new chapter for Domino's," saying it offered "a significant opportunity for our UK & Ireland business." The company said it will update shareholders on third-quarter progress in early November and host an investor event on Dec. 9 to discuss its loyalty scheme, digital strategy, store openings and wider strategic priorities.

The move comes after a challenging period for the group. Domino's Pizza Group shares have fallen roughly a third since the start of the year and were trading near a 10-year low of about 208.8 pence in early trading on Monday, according to the company statement. Management has pointed to weaker consumer demand and higher operating costs as pressure points for the business.

Market commentators said the chicken initiative fits with longer-running efforts by Domino's to broaden its offer and scale the business beyond pizza. Shore Capital analysts noted the group has been "exploring new ways to scale the business, with talks of acquiring a second brand, separate from Domino's," adding that the Chick 'n' Dip launch and a recent £20 million share buyback announcement made an immediate acquisition less likely. They maintained a "hold" rating, citing concern around ongoing consumer headwinds and lowering full-year forecasts.

The group has also faced public pressure from some shareholders. Former director and investor Usman Nabi last week urged executives to expand the scope of the share buyback and to abandon any takeover plans, in an open letter to the company.

Domino's said the trial will allow the firm to assess customer demand and operational performance before committing to a wider rollout. Management emphasized the sub-brand's compatibility with existing kitchens and supply arrangements as a way to limit capital expenditure while testing a new category.

The trial follows broader sector moves as quick-service and delivery companies seek new menu additions and loyalty enhancements to attract customers amid subdued discretionary spending. Domino's chief executive will present further detail on the company's strategic priorities, including digital development and loyalty rewards, at the December investor event.

Analysts and investors will watch sales and margin effects from the trial closely. If the chicken concept drives incremental demand without adding significant costs, it could help offset some of the pressures that have weighed on the group's share price this year. Conversely, any sizeable capital outlay or underwhelming consumer response would likely weigh on near-term sentiment.

Domino's said it remains focused on balancing growth initiatives with operational discipline as it responds to the current market environment. The company did not provide a timetable for a national roll-out beyond saying that wider expansion would follow the trial if results were positive.