Dominos Sinks Over 19% After FY25 Results Disappoint Investors

Highlights:

• Domino’s Pizza Enterprises Limited (ASX: DMP) dropped 19.2% to $15.64 at the time of writing, making it one of the day’s worst performers.
• The sharp decline followed weak FY25 results, with net profit after tax falling 33.5% to $90.3 million.
• Rising costs, softer consumer demand, and slower-than-expected store growth weighed heavily on investor sentiment.

Stock Plunges on Weak Market Reaction

Domino’s Pizza Enterprises Limited (ASX: DMP) was among the top losers on the ASX today, with shares plunging 19.2% to $15.64 at the time of writing. The sharp sell-off followed the release of the company’s FY25 full-year results, which revealed softer sales growth, strategic store closures, and lower earnings, weighing heavily on investor sentiment.

Financial Performance Under Pressure

For FY25, Domino’s reported network sales of $4.15 billion, a decline of 0.9% from the previous year. Same-store sales slipped 0.2%, a sharp contrast to the 1.5% growth achieved in FY24. Earnings before interest and tax (EBIT) fell 4.6% to $198.1 million, while franchisee EBITDA remained flat at $94.7k.

Management announced a final dividend of 21.5 cents per share, unfranked, while retaining the Dividend Reinvestment Plan but removing its underwriting feature — a move seen as a sign of capital caution amid ongoing cost pressures.

Strategic Reset and Regional Challenges

The company has begun implementing a group-wide cost efficiency program, with plans to reinvest savings into franchisee support, marketing, and digital initiatives. However, challenges across key markets weighed on results. Australia and New Zealand delivered strong profitability, but international operations dragged performance. Japan continued to struggle with weak same-store sales and required store closures to stabilise the network. France also underperformed, offsetting gains in Benelux and early improvements in Germany and Southeast Asia.

Investor Concerns Ahead

While management remains confident in its reset strategy, investors are wary of near-term earnings pressure. Executive Chair Jack Cowin admitted the company has “work to do” to restore growth, focusing on customer value and franchisee returns.

The combination of declining earnings, muted sales growth, and cautious guidance explains why Domino’s stock tumbled so sharply, cementing its place among today’s biggest losers.

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