Domino's Pizza Enterprises posts FY26 loss but boosts franchise profitability

The pizza chain operator reported a statutory FY26 loss, but improved underlying profit and franchisee margins.

The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is in focus today after the company reported FY26 results highlighted by revenue down 11.2% to $2,046.1 million and a statutory net loss after tax of $134.2 million.

Two parents and two children happily eat pizza in their kitchen.

Image source: Getty Images

What did Domino's Pizza Enterprises report?

  • Revenue: $2,046.1 million, down 11.2% year on year
  • Statutory NPAT: Loss of $134.2 million (impacted by significant non-cash items)
  • Underlying NPAT: $121.6 million, up 4.0%
  • EBITDA: $325.4 million (underlying, down 6.1%)
  • Final dividend: 32.5 cents per share, unfranked (total FY26 dividend 57.5 cents, down 25.3%)
  • Net tangible assets per share: $(5.04) (FY25: $(6.41))

What else do investors need to know?

Domino's statutory loss included $255.7 million in non-cash write-downs and impairments, mainly for its France and Taiwan businesses, along with technology assets and some underperforming corporate stores. Underlying profit increased, reflecting efforts to boost franchisee profitability, cut costs, and reset pricing strategies.

Same store sales fell 4.1% globally, with Australia and New Zealand down 4.7%, Europe down 2.2%, and Asia down 6.7%. The company will close up to 60 stores across regions to sharpen the network's overall health, with anticipated $11 million in annual EBIT benefit. Meanwhile, franchisee profitability improved, and net leverage improved to 1.86x following cost reductions and reduced net debt.

What's next for Domino's Pizza Enterprises?

The company is aiming to return to profitable growth in FY27 after a period of resetting its store network and business model. Building on positive trials in Western Australia, Domino's plans to roll out a revised pricing and operating model across Australia, focusing on long-term franchisee profitability and less reliance on aggressive discounting.

Domino's remains committed to improving operational efficiency and supply chain resilience, preparing to meet ongoing consumer and regulatory changes. New CEO Andrew Gregory has taken the reins, signalling a focus on both network expansion and disciplined execution.

Domino's Pizza Enterprises share price snapshot

The Domino's share price has modestly outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of around 4%.

View Original Announcement

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises. The Motley Fool Australia has recommended Domino's Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

More on Earnings Results

A man leans forward propped on his elbows as he holds his clasped hands to his mouth in a worried pose as he gazes at his computer screen in a home setting.
Earnings Results

5 things reporting season taught ASX investors about FY27

Five FY26 lessons that shape the year ahead.

Read more »

Two smiling colleagues looking at a tablet in a data centre.
Earnings Results

This broker is tipping 33% upside for Megaport shares

It could be time to buy the dip on Megaport shares.

Read more »

Elderly couple using laptop at home while drinking a cup of coffee.
Earnings Results

Why now is the time to buy MediBank Private shares: Expert

This stock comes with a strong yield and defensive profile.

Read more »

A gambler at a casino bets a pile of chips on one number.
Earnings Results

The Star Entertainment share price falls on FY26 earnings

The Star Entertainment Group posted a $307 million net loss for FY26, but cost cuts and stabilised revenues mark early…

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

Kina Securities lifts profit and dividend in half-year 2026 earnings

Kina Securities lifts 1H 2026 profit and dividend, buoyed by strong capital and digital initiatives.

Read more »

Businessman planning and analysing investment data.
Earnings Results

Kingsgate Consolidated posts record FY2026 earnings

NPAT jumps 843% and a dividend is declared on record gold and silver production.

Read more »

Woman at computer in office with a view
Earnings Results

Praemium posts FY26 revenue growth and completes platform integration

Praemium’s FY26 results show revenue growth, HNW momentum, and successful tech integration driving future opportunities.

Read more »

happy group of people
Earnings Results

Black Cat Syndicate posts record FY26 earnings and profit turnaround

Black Cat Syndicate reports record FY26 results, including a $374 million revenue surge and $86 million profit turnaround on strong…

Read more »