Domino’s CEO Don Meij expects pizza delivery numbers to remain strong, even as the COVID-19 recovery sees consumers dine out instead of ordering in, as “one-off factors” took a hefty bite out of the fast food chain’s December half profit.

The global pizza network on Wednesday revealed a net profit loss of 6.9 per cent to $89.1 million for the first half of the 2022 financial year, and a 2.5 per cent drop in earnings before interest, taxes, depreciation and amortisation (EBITDA) to $212.8 million.

Domino’s shares slid by more than 16 per cent on the back of the results, with investors unimpressed by the outlook. The company’s share price, which closed the session at $86.13, has nearly halved in value from its peak of $167.15 from September last year.

A note from Jarden analysts described Domino’s half-year figures as a “soft result” and said the pizza giant would face questions about profit impacts, inflation, and decision to roll out new stores amid a “softer top-line environment”.

Mr Meij said the pizza chain would respond to rising inflation by focussing on “efficiencies to reduce costs to stores” and growing total sales to help boost the bottom line of franchisees.

VanEck Australia deputy head of investment and capital markets, Jamie Hannah, said the steep share price fall was an overreaction by investors.

“I don’t think the results are as bad as what the markets are showing at the moment - there are some growth opportunities there,” he said.

However, he noted the company had missed its income targets and inflation would remain a key challenge for the pizza business. “The cost of food is potentially one of the biggest headwinds,” Mr Hannah said.

Domino’s, valued at $7.4 billion, was weighed down in the half by the sale of 19 Australian company-owned stores back to franchisees which cost the business $6 million in the first half, as well as the temporary closure of its New Zealand market, knocking out just under $2 million. Losses in Domino’s Japan business also made a $9 million dent to its bottom line