Domino's Pizza refutes claims about ongoing row with franchisees

Domino's Pizza has refuted claims made in the Sunday Times that the company has been misleading investors about progress in negotiations with the pizza chain's franchisees.

According to the Sunday Times, Domino's received a letter before its results last week from the Franchisee Association warning that comments suggesting a resolution to an ongoing dispute could be found were "extremely misleading".

The group of store owners were said to have written in the letter that chief executive officer David Wild and the franchisees were "at total odds".

Domino's franchisees are currently in a row with the company's top executives, refusing to open more stores as they call for a greater share of the profits.

But Domino's said on Monday that it "strongly refutes" the allegations being made.

"The company has been clear and transparent that it has been in commercial discussions with franchisees, which are continuing," it said.

About 90% of the 67 store owners are members of the Domino’s Franchisee Association, which says their share of profits has dropped to 50% from 61% over the past four years.

At 0810 GMT, the shares were up 2.2% to 235.91p.