Australia · Delayed Price · Currency is AUD Domino's Pizza Enterprises Earnings Call Transcripts
Fiscal Year 2026
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Underlying NPAT is expected between AUD 118–122 million, with strong free cash flow and reduced leverage. Franchisee profitability has risen, driven by cost reductions and a focus on quality sales, while same-store sales declined due to fewer promotions. Store closures and technology improvements are underway to further optimize performance.
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First half FY26 saw EBIT and NPAT growth despite lower sales from reduced discounting, with franchisee profitability at a three-year high and strong free cash flow. The business reset is driving improved unit economics, cost savings, and a disciplined, returns-led expansion strategy.
Fiscal Year 2025
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The meeting focused on a strategic shift from discounting to value-driven pricing, significant cost reductions, and leadership renewal to restore profitability and shareholder value. Shareholders engaged actively on governance, financial strategy, and director appointments, with all resolutions passed and optimism expressed for future growth.
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Network sales were $4.1B with underlying net profit after tax of $116.9M, reflecting margin resilience amid flat sales and a challenging competitive landscape. Aggressive cost reductions, a shift to everyday value pricing, and targeted market actions are expected to drive improved profitability in FY2026.
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Leadership is focused on accelerating cost reductions and improving franchisee profitability, with a 3% same-store sales growth target. Technology is no longer a key differentiator, so scale, advertising, and execution are prioritized. No external capital raising is planned, and incentives will be used to align management and franchisee interests.
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Network sales declined 2.9% year-over-year but improved sequentially, with ANZ leading performance and significant cost savings realized through store closures and procurement efficiencies. The outlook anticipates FY25 earnings growth, driven by improved same-store sales and continued cost discipline.
Fiscal Year 2024
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The AGM featured a CEO transition, review of FY24 results with global sales up 4.6% but profit and share price down, and a renewed focus on franchisee profitability and sustainable growth. Shareholders raised concerns on reporting, remuneration, and strategy, with the board outlining plans for operational improvement and governance renewal.
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Revenue and EBIT grew modestly, with strong ANZ and Europe results offset by Asia. Cost savings, restructuring, and new product launches improved margins and franchisee profitability. Turnarounds in France and Japan, along with continued cost control, are key to FY 2025 growth.