Highlights

• Domino’s improved underlying profit and free cash flow despite weaker sales and a statutory loss driven largely by non-cash write-downs.
• Franchisee profitability strengthened as the Group reduced discounting, cut costs and focused more heavily on sustainable store economics.
• FY27 priorities centre on rebuilding sales momentum, expanding the Western Australia operating model and preserving recent margin improvements.

FY26 Results Show Mixed Financial Performance

Domino’s Pizza Enterprises Limited (ASX: DMP) released its FY26 results on 26 August 2026 for the year ended 28 June 2026. Revenue from ordinary activities declined 11.2% to AU$2,046.1 million, while the company reported a statutory loss after tax of AU$134.2 million. The statutory outcome included around AU$255.7 million in asset write-downs and other one-off expenses, mainly associated with the France and Taiwan businesses, technology assets and weaker-performing company-owned stores.

Underlying Earnings and Cash Flow Improve

Despite weaker reported revenue, underlying NPAT increased 4.0% to AU$121.6 million. Free cash flow improved by AU$116.6 million to AU$164.1 million, supported by stronger cost discipline and operating efficiencies. The Group delivered AU$67 million of annualised savings across headcount, technology and supplier expenses. Net debt was reduced by AU$227.8 million, while net leverage improved to 1.86 times from 2.57 times. The balance sheet was also supported by a AU$1.05 billion refinancing with revised pricing and staggered maturities.

Franchise Economics Become a Greater Priority

Group same-store sales declined 4.1%, including a 4.7% fall across Australia and New Zealand. Average franchisee EBITDA reached AU$105,700 per store over the 12 months to the third quarter, marking an 11.3% increase on a constant-currency basis. The company attributed this improvement to pricing discipline, lower costs and reduced reliance on low-margin promotions. Domino’s also plans to close up to 60 stores across its operating regions as it reshapes the network around stronger unit economics.

Dividend and Outlook

The Board approved an unfranked final dividend of 32.5 cents per share, payable on 30 November 2026.  For FY27, management’s priority is to restore profitable sales and order growth while protecting recent margin gains. Domino’s plans to extend the Western Australia operating and pricing framework across the broader Australian network after the trial generated around 30% growth in average store EBITDA.

Note- All data presented is based on information available at the time of writing.

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