By Digifin Pty Ltd · About this coverage
Key Points
- Underlying EBIT $200.1m, up 1.0%; network sales $3.87b, down 6.8% including store closures
- Free cash flow $164.1m, up $116.6m; net debt down $227.8m and net leverage 1.86x
- Franchise partner EBITDA per store $105.7k, up 11.3%, measured as at Q3 FY26
- Unfranked final dividend 32.5c, up 51.2%, a 50% payout of 2H underlying NPAT
- ANZ underlying EBIT down 5.9%, Asia up 19.7%, Europe up 2.6%
About Domino's (ASX:DMP)
Domino's Pizza Enterprises Limited is an ASX-listed food retailer headquartered in Brisbane. It holds the master franchise rights to the Domino's Pizza brand across Australia, New Zealand, several European markets and parts of Asia, and both operates corporate stores and franchises stores to local partners. Its earnings come largely from franchise royalties, food and equipment supply to franchisees and trading at corporate stores.
Domino's (ASX:DMP) Pizza Enterprises reported underlying EBIT of $200.1 million for FY26, up 1.0% on FY25, on network sales of $3.87 billion, down 6.8% including store closures, with same-store sales down 4.1%. The media release does not disclose a statutory profit figure. Free cash flow was $164.1 million, an increase of $116.6 million on FY25; net debt reduced by $227.8 million and net leverage, which the release defines as net debt to underlying EBITDA, fell to 1.86 times, achieving the group's target of less than 2.0 times. Average franchise partner profitability rose 11.3% to $105.7 thousand of rolling 12-month EBITDA per store, a measure the release footnotes as taken at the third quarter of FY26, with average store EBITDA margin on the same basis improving to 7.9%. The Board declared an unfranked final dividend of 32.5 cents per share, up 51.2% on the FY25 final dividend and equivalent to a payout ratio of 50% of second-half underlying NPAT, with the Dividend Reinvestment Plan remaining in place and not underwritten.
By market, Australia and New Zealand underlying EBIT fell 5.9% with same-store sales down 4.7%, which the company attributed to deliberate pricing resets and reduced discounting designed to improve franchise partner economics, and to a decision to pass through lower food and packaging costs to franchise partners ahead of the full benefits of savings initiatives being realised. Asia underlying EBIT rose 19.7% despite same-store sales falling 6.7%, reflecting closures of underperforming stores mainly across Japan alongside menu optimisation and cost discipline. Europe underlying EBIT rose 2.6% with same-store sales down 2.2%, as stronger performance in BENELUX offset softer trading in France and Germany in the second half. Global overheads improved 5.8%. Executive Chairman Jack Cowin said the company delivered $67 million of annualised savings actioned with $35.3 million realised in FY26. Group Chief Executive Officer and Managing Director Andrew Gregory said the FY27 focus is to restore profitable sales growth, and the release said Domino's will build on a Western Australian pricing model that tests a set menu price for delivery and carry-out with a simple low delivery fee, under which the pilot delivered franchisee EBITDA growth of more than 30% for five consecutive months.
Source: Domino's Pizza Enterprises Limited (ASX:DMP), 26 August 2026. Summary content supplied by Digifin Pty Ltd.
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