Domino's Pizza Enterprises Ltd (ASX: DMP) shares have crashed 12%, following the pizza chain's FY26 results announcement this morning.
At the time of writing, the shares are trading for $17.70.
They're now down around 19% for the year-to-date and are 8% lower than trading levels 12 months ago.
Image source: Getty Images
What has spooked investors today?
The company reported a 11.2% decrease in revenue, and a statutory NPAT loss of $134.2 million, including $255.7 million in non-cash write-downs and impairments. These were mainly for its France and Taiwan businesses, and also included technology assets and some underperforming corporate stores.
Domino's underlying NPAT was up 4% for the 12-month period, and in line with guidance, but EBITDA fell 6.1%.
The company also cut its total FY26 dividend by 25.3% to 57.5 cents.
Going forward, Domino's said it is planning to return to profitable growth in FY27 after a period of resetting its store network and business model.
Domino's also confirmed plans to roll out a revised pricing and operating model across Australia, focusing on long-term franchisee profitability and less reliance on aggressive discounting. The move follows a positive trial in Western Australia.
It's clear that investors weren't impressed with the results and many have rushed to sell up their shares this morning.
It's been a difficult year for the fast food operator. The latest decline follows the company's FY26 half-year result, which it announced in February this year. That half-year result was also a miss for investors and sent the share price crashing.
The shares dropped to a decade-low in mid-May but began recovering through late July after Domino's posted its preliminary FY 2026 results ahead of today's announcement. Most of those gains have been shed so far today.
Earlier this month, the company also revealed that Andrew Gregory has commenced as Group Chief Executive Officer and Managing Director. Jack Cowin has also resumed his former position as Non-Executive Chair.
Is the stock a buy, sell or hold now?
I expect that some market experts may revise their outlook on Domino's shares in the coming days, following today's results announcement.
But at the time of writing, analysts are still on the fence about the outlook for Domino's shares this year.
TradingView data shows that out of 18 analysts, three have a buy or strong buy rating and 10 have a hold rating. Another five have a sell/strong sell rating.
The average $18.94 target price implies potential upside of around 7% over the next 12 months, at the time of writing.
But the difference between the maximum and minimum is wide. Some analysts think the shares could rise 46% to $26 per share. Meanwhile, others expect them to sink another 33% to $12 per share, at the time of writing.
