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.
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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%.
