UK’s Domino’s expects tech investments to hit 2023 profit

(Reuters) -Britain’s Domino’s Pizza (NYSE:) Group Plc said on Thursday its profit this year would be impacted by investments in cloud-based technology platforms, sending its shares down more than 8%.

The company said it expects underlying core profit this year to be within market expectations, excluding about 9 million pounds ($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 for 2023.

Domino’s reported 2022 underlying core profit of 130.1 million pounds, compared with 136.4 million pounds in the previous year, affected by the technology investments, higher costs and food inflation.

Shares of London-listed Domino’s, 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)