Highlights

  • Domino’s Pizza Enterprises (ASX:DMP) traded at AUD 17.74, down 11.65% during the morning Trading session on 26 August 2026.
  • Franchise partner profitability increased 11.3% to $105.7k rolling 12-month EBITDA per store, the highest level in four years.
  • The company generated $164.1m in free Cash Flow and reduced net Debt by $227.8m.
  • Underlying EBIT increased 1.0% to $200.1m despite lower network sales and same-store sales.
  • Domino’s declared an unfranked final Dividend of 32.5 cents per share, up 51.2% on FY25.

Domino’s Pizza Enterprises Limited (ASX:DMP) has reported its FY26 financial results, highlighting progress on Franchise partner profitability, cost discipline and Balance Sheet improvement as the company focuses on rebuilding profitable customer order growth.

The company traded at AUD 17.74, down 11.65% during the morning trading session on 26 August 2026. Over the past year, Domino’s Pizza Enterprises’ share price has declined 8.37%.

During FY26, Domino’s implemented operational changes aimed at improving franchise economics, reducing reliance on broad discounting and simplifying its customer value proposition.

Financial Performance

Domino’s reported underlying EBIT of $200.1m for FY26, representing a 1.0% increase compared with FY25.

Network sales declined 6.8% to $3.87bn, including the impact of store closures, while same-store sales declined 4.1%.

Despite softer sales conditions, the company improved franchise partner returns, with average franchise partner profitability increasing to $105.7k rolling 12-month EBITDA per store.

Average store EBITDA Margin improved to 7.9%, with franchise profitability reaching its highest level in four years.

Balance Sheet Improvement

Domino’s delivered free cash flow of $164.1m during FY26, an increase of $116.6m compared with FY25.

The company reduced net debt by $227.8m, bringing net Leverage down to 1.86 times net debt to underlying EBITDA.

This achieved the company’s target of reducing leverage below 2.0 times.

Domino’s said the stronger balance sheet provides a foundation for continued Investment while maintaining disciplined Capital allocation.

Operating Reset

A key focus during FY26 was improving Business Economics through operational changes.

Domino’s reduced reliance on broad discounting and continued testing targeted value models, including a pilot program in Western Australia.

The WA pricing model introduced set menu pricing for delivery and carry-out orders, combined with a simpler delivery fee structure.

The company said the initial customer response was positive, with the pilot delivering Franchisee EBITDA growth of more than 30% for five consecutive months while carry-out sales increased compared with the prior year.

Domino’s plans to apply learnings from the WA model more broadly across its network.

Regional Performance

In Australia and New Zealand, underlying EBIT declined 5.9%, with same-store sales down 4.7%.

The company said the result reflected pricing changes and reduced discounting designed to improve franchise partner economics. Lower order volumes were partly offset by higher average transaction values, cost savings and food cost benefits.

In Asia, underlying EBIT increased 19.7%, despite same-store sales declining 6.7%.

The improvement was supported by store rationalisation, particularly in Japan, along with menu optimisation and cost discipline. Malaysia and Singapore continued improving from profitable operating bases.

In Europe, underlying EBIT increased 2.6%, while same-store sales declined 2.2%.

The company said stronger performance in BENELUX offset softer conditions in France and Germany during the second half of FY26.

Cost Management

Domino’s continued implementing cost reduction initiatives during FY26.

The company reported $67m of annualised savings had been actioned, with $35.3m realised during FY26.

Lower overheads reflected tighter cost control, disciplined headcount management and reduced discretionary spending during the second half.

The company said these measures supported margin stability while simplifying operations.

Leadership and Strategy

Domino’s Leadership team is now in place, with Andrew Gregory appointed Group Chief Executive Officer and Managing Director.

The company said FY26 represented a period of disciplined execution, with efforts focused on improving franchise partner profitability, simplifying customer offerings and strengthening business fundamentals.

Executive Chairman Jack Cowin said the company made deliberate decisions during FY26 to improve franchise economics and build a stronger operating system.

Mr Cowin highlighted the improvement in franchise profitability, higher free cash flow and lower leverage while acknowledging further work remains in rebuilding customer frequency and profitable order growth.

FY27 Outlook

Domino’s FY27 focus is centred on restoring profitable sales growth while continuing to support franchise partner returns and disciplined capital management.

The company plans to continue improving customer value through clearer pricing, stronger execution and more relevant offers without returning to broad discounting.

Group CEO and Managing Director Andrew Gregory said the company’s priorities include growing customer orders through value, meal quality and relevant offers while maintaining profitability.

Dividend Update

The Domino’s Board declared an unfranked final dividend of 32.5 cents per share.

The dividend represents an increase of 51.2% compared with the FY25 final dividend and reflects a Payout Ratio of 50% of second-half underlying NPAT.

The Dividend reinvestment Plan remains in place and is not underwritten.

Investor Takeaway

Domino’s Pizza Enterprises’ FY26 results highlight progress in franchise profitability, cash generation and debt reduction while the company continues working through softer customer Demand conditions. The business has focused on improving operating discipline, reducing costs and strengthening franchise economics. Investors may continue watching customer order growth, execution of the FY27 strategy and the company’s ability to translate operational improvements into sustainable growth.