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Thu 4th Sep 2025 - Update: Domino's, Raising Cane’s confirms UK launch, interest rates, Diageo |
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Domino’s Pizza urged to return £100m to shareholders and pause second brand plans that could lead to take-private deal: An activist investor has urged Domino’s Pizza to pause plans to acquire a second brand for six months and immediately return £100m to shareholders, as part of a wider strategic shake-up that could lead to a take-private deal. Browning West, one of Domino’s largest shareholders with a 5% stake, wrote to the board of Domino’s arguing its expansion plans should be pursued only if a suitable private equity partner is identified. The open letter was sent before the announcement of a £20m share buy-back programme this week and calls instead for £100m to be returned to shareholders before the end of the year. Shares in Domino’s, which has been publicly listed for 26 years, hit their lowest level in a decade late last month, a few weeks after the group cut annual profit guidance on weak consumer confidence and higher employment costs following last year’s Budget. While the stock lifted this week on news of the £20m buy-back, Browning West said the announcement “did not go far enough”, arguing Domino’s “highly dislocated” share price warranted an aggressive repurchasing “at the largest possible scale”. Under chief executive Andrew Rennie, Domino’s has for two years set its sights on acquiring a second brand to add to its portfolio. Domino’s was in the running to buy Wingstop UK late last year, before the fried chicken brand was sold to American private equity firm Sixth Street for £400m. Browning West, which is based in Los Angeles, said it had “significant reservations” about the multi-brand strategy, arguing such an approach would be “far easier to execute and at a greater scale in a private setting”. In the near-term, Browning West said a six-month pause on acquisitions would allow management to focus on the “critical” task of returning the core business to “sustainable earnings growth”. A source close to Domino’s told The Times it would “only acquire a brand if we are absolutely sure we can deliver returns to shareholders”. The source added at the current share price, it “wouldn’t make sense to take the company private”. A Domino’s spokesman said it had a clear capital allocation framework and was “committed to creating shareholder value, as evidenced by the announcement of a £20m share buy-back”. He added: “Domino’s is a highly cash-generative and resilient business with a robust financial position, and as stated in the announcement, we will review the buy-back programme later in the year.”
Premium Club subscribers to receive new searchable and segmented New Openings Database tomorrow: The next Propel New Openings Database will be sent to Premium Club subscribers tomorrow (Friday, 5 September), at 12pm. The database will show the details of 174 site openings, including which company has opened a site or its plans to open one in the future. The database will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis and Premium Club subscribers will also receive a 11,126-word report on the 174 new additions to the database. It is segmented into seven categories – cafe bakery, casual dining, experiential leisure, fine dining, hotels, pubs and bars, and quick service restaurants – making it even easier for users to search. The database includes new openings in the cafe bakery sector such as Manchester cafe concept Federal Café opening in Leeds, The Doughter launching in Nottinghamshire, and Lockdown Bakehouse opening a fifth site in London. Premium Club subscribers also receive access to five other databases: the Turnover & Profits Blue Book, the Multi-Site Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. All Premium Club subscribers will be offered a 20% discount on tickets to Propel paid-for events and discounts on specialist sector reports. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club subscribers also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
Third-largest US chicken brand Raising Cane’s confirms UK launch: Raising Cane’s, which recently became the third-largest chicken brand in the US by sales behind Chick-fil-A and Popeyes, has confirmed it is heading to the UK. Propel revealed at the start of July that Raising Cane’s, which specialises in chicken fingers and operates more than 900 sites, the majority in the US, was in talks to secure a flagship site in London’s Piccadilly, with Coventry Street touted as a possible destination. Now the brand has confirmed it has acquired the former Angus Steakhouse site at 21-22 Coventry Street. The site is set to open in 2026, as the first of several restaurants planned in London. Raising Cane’s co-chief executive and chief operating officer AJ Kumaran said: “Bringing Raising Cane’s to the UK has been a dream of ours for many years and we’re excited to officially open the doors to our UK flagship late next year. We love the vibrant and eclectic atmosphere of Piccadilly Circus and are looking forward to marking this milestone with a flagship in the heart of London. With more than 950 restaurants across the US and Middle East, Europe presents an excellent expansion opportunity as we embark on this next phase of growth, and we’re excited to begin that growth with the UK.” The Louisiana-based company, which was founded in 1996 in Baton Rouge by Todd Graves and Craig Silvey, is understood to be working with property advisory firm Etch on its plans for the UK and is thought to have already also looked at potential sites in Manchester and Birmingham. Propel understands that Graves, who named the business after his labrador retriever, Raising Cane, is personally overseeing the launch of the brand here, which will initially involve company-owned sites. Propel understands the brand is also in talks on the former Halifax site on The Strand, a site in Brixton and a further site in Paddington.
Bank of England governor effectively rules out further interest rate cuts this year: Bank of England governor Andrew Bailey has warned there was now ‘considerably more doubt’ about further interest rate cuts this year. Bailey told MPs that while he continued to expect rates to come down it was harder to say when that would happen – after inflation rose more quickly than expected. And he appeared to endorse traders betting there will be no further cuts this year, saying the bank’s message “has been understood” by markets. The bank’s monetary policy committee (MPC) cut its benchmark rate from 4.25% to 4% last month but markets are not pricing in another quarter-point cut until the spring. Inflation rose to 3.8% in July, the highest level in 18 months. Last month, the bank predicted inflation would climb to 4% this year – double the 2% target level. The nine-member MPC voted five to four for a cut. But, in evidence to the Treasury select committee yesterday (Wednesday, 3 September), Bailey poured cold water on hopes of further cuts soon. He said: “Although I think that the path will continue to be downwards gradually over time, there is now considerably more doubt about exactly when and how quickly we can make those further steps. That’s the message I wanted to get across. Now, I think actually, judging by what’s happened, certainly to market pricing since then, I think that message has been understood.”
Diageo threatened with retaliation for closing Canadian factory: The premier of Ontario has vowed to “hurt” Guinness maker Diageo in retaliation for the closure of a factory in the Canadian province. Diageo announced plans last week to shut down the plant in Amherstburg, a town on the Detroit River border with the US, as part of efforts to improve the company’s North American supply chain and move closer to US consumers. “A message to the chief executive – you hurt my people, I’m going to hurt you,” Doug Ford, who has been premier of Ontario since 2018, said at a press conference. He then proceeded to slowly pour a large bottle of Diageo’s Crown Royal whisky on to the ground in protest at the decision, which is expected to result in 180 job losses. “I think everyone else should do the same thing,” he said. “Start supporting companies that make whisky here in Ontario.” Ford was a key supporter of the decision by a number of Canadian provincial leaders to take US alcohol off shelves in March in response to president Trump’s tariffs. Diageo has not confirmed whether the plant closure is a direct response to Trump’s trade policy. Ford said the company’s executives were “smug as they come” and “probably a few fries short of a Happy Meal”. Unifor, the union representing workers at the Amherstburg plant, criticised the “shock decision” and said it had not been consulted by Diageo, whose brands also include Johnnie Walker and Buchanan’s. Diageo said: “This was a difficult decision, but one that is crucial to improving the efficiency and resiliency of our supply chain network. Crown Royal will be mashed, distilled and aged at our Canadian facilities, just as it has been for nearly a century, and will continue to be the great whisky our consumers know and love.” Diageo directly employs more than 500 people across Canada, including more than 100 in Ontario outside of the Amherstburg site.
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