Domino’s Pizza Enterprises Limited (ASX:DMP) is providing eligible shareholders with the option to reinvest its FY26 final Dividend through the company’s dividend reinvestment plan (DRP). The final dividend is 32.5 cents per share and is unfranked, with participating shareholders able to receive additional Domino’s shares instead of taking the distribution entirely in cash.

The DRP applies a 1% discount to the relevant volume-weighted average price calculation and is not underwritten. The final dividend forms part of total FY26 dividends of 57.5 cents per share, comprising a 25.0 cent Interim Dividend and the 32.5 cent final dividend.

Latest developments

Domino’s reported FY26 Revenue of $2,046.1 million, representing an 11.2% decline from the previous financial year. Network sales declined 6.8% to $3.87 billion, while global same-store sales were 4.1% lower.

Underlying EBIT increased 1.0% to $200.1 million, while underlying net profit after tax rose 4.0% to $121.6 million. The company recorded a statutory net loss after tax of $134.2 million after recognising significant items, including impairments and write-downs associated with stores and operations.

Cash generation improved during the year, with free Cash Flow reaching $164.1 million. Net Debt declined by $227.8 million to $497.0 million and net Leverage reduced to 1.86 times, below the company’s target of less than 2.0 times.

Average Franchise partner profitability increased 11.3% to $105,700 in rolling 12-month EBITDA per store, while average store EBITDA Margin increased to 7.9%.

Key numbers

The company declared an unfranked FY26 final dividend of 32.5 cents per share, compared with 21.5 cents per share for the previous corresponding final dividend.

Together with the 25.0 cent interim dividend, total FY26 dividends amounted to 57.5 cents per share, compared with 77.0 cents in FY25.

The final dividend has a Record Date of 2 September 2026 and is scheduled for payment on 30 November 2026. The company’s DRP applies to the distribution and is not underwritten.

The FY26 financial result also highlighted the difference between statutory and underlying performance. Underlying NPAT increased to $121.6 million, while the company reported a statutory loss of $134.2 million following significant restructuring, Impairment and other items.

About the company

Domino’s Pizza Enterprises is a quick-service restaurant operator and master Franchisee of the Domino’s Brand across markets in Australia, New Zealand, Europe and Asia.

The company generates revenue through company-owned stores and services provided across its franchise network. Its operations span markets including Australia, New Zealand, France, Germany, Belgium, the Netherlands, Luxembourg, Japan, Taiwan, Malaysia, Singapore and Cambodia.

Andrew Gregory joined Domino’s as Group Chief Executive Officer and Managing Director in August 2026. His appointment forms part of a broader Leadership and operational reset aimed at improving franchise partner economics, simplifying the Business and rebuilding profitable customer demand.

How the DRP works

The FY26 final dividend DRP allows eligible shareholders to reinvest all or part of their dividend entitlement into additional Domino’s shares rather than receiving the relevant amount in cash.

For the final dividend, the shares are priced using a defined volume-weighted average price methodology with a 1% discount applied. The DRP is not underwritten.

Eligible participation is generally available to shareholders with registered addresses in Australia and New Zealand, subject to the terms of the plan. Shareholders should refer to the applicable dividend notice and DRP rules because eligibility, pricing arrangements and other terms can vary between distributions.

Shares issued under the DRP rank equally with existing ordinary shares. Future application of the DRP remains subject to decisions by the Domino’s board.

Why the DRP matters

The DRP gives shareholders an alternative method of receiving the company’s dividend distribution. Instead of receiving the full dividend entitlement in cash, participating shareholders can use the distribution to acquire additional Domino’s shares under the plan.

The FY26 final dividend is unfranked, meaning it does not carry Australian franking credits. The tax treatment of dividends and shares acquired through a DRP depends on individual circumstances.

Because new shares may be issued under the plan, DRP participation can also increase the company’s total number of shares on issue. Shareholders who participate acquire additional equity, while those receiving cash do not increase their holdings through the distribution.

What comes next

Domino’s has identified profitable order growth as a key focus for FY27 after spending FY26 improving franchise partner economics, lowering costs and strengthening its balance sheet.

Management is working on clearer customer value, pricing discipline, operational execution and more targeted offers rather than returning to broad discounting. The company is also applying lessons from pricing and operating initiatives as it works to improve order frequency while preserving franchise partner profitability.

Future dividend levels will depend on earnings, cash generation, Capital requirements and board decisions. Whether the DRP continues to apply, and the terms attached to future distributions, will also be determined for each relevant dividend.

Risks and context

Domino’s FY26 result showed improving Underlying Profit and cash generation alongside lower revenue, network sales and same-store sales. The divergence means the company remains focused on rebuilding customer Demand while maintaining the improvements made to franchise economics.

The statutory loss also demonstrates the potential effect of impairments, restructuring charges and other significant items on reported earnings. Further changes to the store network or operating model could continue to affect statutory results.

Other operating considerations include franchise partner profitability, food and labour costs, customer demand, execution of pricing initiatives, foreign exchange movements and performance across the company’s geographically diverse markets.

Dividend distributions are not guaranteed and may change according to financial performance, cash requirements and board decisions. Similarly, DRP discounts and other plan conditions can be amended or suspended for future dividends.

Key Insights

Domino’s Pizza Enterprises is applying its DRP to the FY26 final dividend, providing eligible shareholders with the option to receive additional shares rather than taking the entire distribution in cash. The final dividend is 32.5 cents per share, unfranked, and the DRP incorporates a 1% discount under its pricing methodology.

FY26 also reflected a mixed operating and financial picture. Revenue, network sales and same-store sales declined, while underlying EBIT, underlying NPAT, franchise partner profitability and free cash flow improved. Net debt and leverage also declined as the company continued its operational and balance-sheet reset.