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Domino's Pizza Enterprises Limited
(Sydney:DMP)
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Rating:53Neutral
Price Target:
AU$20.50
▲(2.09% Upside)
Action:Reiterated
Date:08/28/26
The score is held back primarily by weakened profitability and elevated balance-sheet risk despite some deleveraging, partially offset by resilient and improving cash generation. Technicals are moderately supportive with price trading above key moving averages and positive MACD. Valuation remains uncertain due to a negative P/E, while the earnings call adds a modest positive tilt from improving cash flow and franchise economics but with clear near-term sales and execution headwinds.
Positive Factors
Franchisee Profitability
Improving franchisee economics strengthen partner retention, support future store investment and make network expansion more sustainable. Higher store-level profitability also improves the durability of royalties and supply-chain earnings.
Negative Factors
Persistent Sales and Order Declines
Sustained declines in customer orders weaken the revenue base supporting royalties, company stores and supply-chain volumes. Recovering frequency while maintaining profitable pricing is central to restoring durable growth across the network.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchisee Profitability
Improving franchisee economics strengthen partner retention, support future store investment and make network expansion more sustainable. Higher store-level profitability also improves the durability of royalties and supply-chain earnings.
Read all positive factors
Domino's Pizza Enterprises Limited (DMP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.78B
Dividend Yield2.26%
Average Volume (3M)858.44K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-11.19%
EPS Growth-2942.58%
CountryAU
Employees537
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-1.42
Shares Outstanding94,746,864
10 Day Avg. Volume663,359
30 Day Avg. Volume858,436
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.23
Price to Sales (P/S)0.72
P/FCF Ratio6.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$19.62Price Target Upside-2.32% Downside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)1.31
Revenue Forecast (FY)AU$1.94B
Domino's Pizza Enterprises Limited Business Overview & Revenue Model
Company Description
Domino's Pizza Enterprises Limited operates retail food outlets. It holds franchise rights for the Domino's brand in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Cambodia, Germany, Luxembourg, Taiwan, Denmark, Malaysia, and Sin...
How the Company Makes Money
DMP generates revenue through a mix of company-owned store sales, franchising income, and supply-chain-related earnings tied to its Domino’s store network. (1) Retail sales from company-owned stores: When DMP operates a store directly, it records ...
Domino's Pizza Enterprises Limited Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call presents a constructive operational and financial reset: management delivered meaningful cost savings, materially improved free cash flow, reduced net debt and strengthened franchisee profitability, while preserving modest underlying earnings growth and significantly increasing the dividend. Those positive outcomes have created a firmer financial foundation. At the same time, the reset intentionally reduced discount-driven volume, leaving same-store sales and order counts materially negative entering FY27, and the group recorded significant noncash impairments for certain markets. Management outlined a clear plan to restore order frequency with measured, market-level tests (WA as a blueprint) and emphasized disciplined reinvestment in value and capability. Overall, the tone is cautiously optimistic — strong progress on balance sheet and franchise economics but with near-term sales recovery and execution risk that will determine momentum through FY27.Positive Updates
Franchisee Profitability Improvement
Average rolling Q3 12-month franchise store EBITDA increased 11.3% to $105,700 and average store EBITDA margin rose from 7.1% to 7.9%. Australian stores are above the global average at $128,000 with a global target of $130,000.
Negative Updates
Network Sales and Same-Store Sales Decline
Network sales fell 6.8% to $3.87 billion and same-store sales declined 4.1% for FY26. Group same-store sales were down 2.5% in H1 and down 5.7% in H2, with the first eight weeks of FY27 tracking around -5.8%.
Read all updates
Q4-2026 Updates
Positive
Negative
Franchisee Profitability Improvement
Average rolling Q3 12-month franchise store EBITDA increased 11.3% to $105,700 and average store EBITDA margin rose from 7.1% to 7.9%. Australian stores are above the global average at $128,000 with a global target of $130,000.
Read all positive updates
Company Guidance
Management said the FY‑26 “reset” has delivered measurable improvement but FY‑27 is focused on rebuilding profitable orders: average rolling Q3 12‑month franchisee EBITDA is up 11.3% to $105,700 (Australia $128,000) with store margin up from 7.1% to 7.9% and a long‑term franchisee target of $130,000; network sales were $3.87bn (‑6.8%) with same‑store sales ‑4.1%, underlying EBIT $200.1m (+1%), underlying NPAT $121.6m (+4%), free cash flow before divestments up $116.6m to $164.1m (from $47.4m), net debt reduced $227.8m to $497m and net leverage 1.86x (target <2.0x) with interest cover 20.6x and cash + undrawn facilities $467.5m; capital expenditure fell to $38.7m (‑$48.1m) and digital spend to $21.5m (prior $44.8m) with planned digital investment $30–45m; cost actions have delivered $67m of annualised savings ($35.3m realized in FY‑26) toward a $100m program (remainder in FY‑27/28) plus $15–25m procurement opportunities to share with franchisees; trading: group comps were ‑2.5% H1 and ‑5.7% H2 and the first 8 weeks of FY‑27 ~‑5.8%, order count is down ~10–11% (ticket up ~5%), while WA tests show carryout comps positive, five months of record franchisee EBITDA (WA franchisee EBITDA up ~30%), delivery fee trial moved from $8.95 to $5.95 with improved conversion—management will prioritise growing average weekly order count, sustaining cost and capital discipline, and will not provide FY‑27 earnings guidance.Domino's Pizza Enterprises Limited Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.04B | 2.30B | 2.37B | 2.34B | 2.27B |
| Gross Profit | 513.77M | 1.30B | 731.50M | 587.23M | 634.83M |
| EBITDA | 281.57M | 179.74M | 324.55M | 279.38M | 380.55M |
| Net Income | -134.16M | -3.70M | 95.96M | 40.57M | 158.72M |
Balance Sheet | |||||
| Total Assets | 2.04B | 2.67B | 2.59B | 2.88B | 2.43B |
| Cash, Cash Equivalents and Short-Term Investments | 131.03M | 153.50M | 87.65M | 159.89M | 76.88M |
| Total Debt | 1.12B | 1.50B | 1.44B | 1.74B | 1.41B |
| Total Liabilities | 1.58B | 2.01B | 1.98B | 2.36B | 2.01B |
| Stockholders Equity | 457.25M | 663.09M | 609.55M | 520.52M | 421.96M |
Cash Flow | |||||
| Free Cash Flow | 212.88M | 91.39M | 146.78M | 103.13M | -1.95M |
| Operating Cash Flow | 226.71M | 167.18M | 236.97M | 260.79M | 190.12M |
| Investing Cash Flow | 7.32M | -54.39M | -66.01M | -487.94M | -233.28M |
| Financing Cash Flow | -247.69M | -54.65M | -239.09M | 314.12M | -49.95M |
Domino's Pizza Enterprises Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | AU$65.79M | 55.87 | -10.34% | ― | -9.06% | ― | |
57 Neutral | AU$980.69M | 22.30 | 10.53% | 3.64% | 4.81% | 397.47% | |
56 Neutral | AU$2.89B | -109.19 | -8.88% | 0.92% | 19.36% | -286.26% | |
53 Neutral | AU$1.78B | -14.39 | 8.83% | 2.76% | -11.19% | -2942.58% | |
46 Neutral | AU$3.79M | -2.86 | 5.84% | ― | -8.96% | 69.23% |
* Consumer Cyclical Sector Average
AU:DMP
Domino's Pizza Enterprises Limited
20.30
5.77
39.72%
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Domino's Pizza Enterprises Limited Corporate Events
Domino’s Director John Cowin Increases Indirect Shareholding via On-Market Trades
Aug 28, 2026
Domino’s Pizza Enterprises has disclosed a change in the indirect shareholdings of director John James Cowin, reflecting additional on-market purchases through associated entities. Corom Pty Ltd, an entity associated with Cowin, acquired a t...
Domino’s Pizza Enterprises Announces Interim Dividend and DRP Timetable
Aug 26, 2026
Domino’s Pizza Enterprises has declared a fully franked interim dividend of AUD 0.325 per ordinary share for the six-month period ended 28 June 2026. The distribution will be paid to holders of DMP ordinary fully paid shares and reflects ong...
Domino’s lodges updated ASX corporate governance disclosures
Aug 26, 2026
Domino’s Pizza Enterprises Limited has confirmed that its updated corporate governance statement for the year ended 28 June 2026 is available on its website, satisfying ASX Listing Rule requirements. The statement outlines the extent to whic...
Domino’s Activates Discounted DRP for FY26 Final Dividend
Aug 26, 2026
Domino’s Pizza Enterprises Limited operates in the quick-service restaurant industry, focusing on pizza delivery and takeaway across multiple markets. The company generates revenue primarily through franchise operations and company-owned sto...
Domino’s Boosts Franchise Profits and Deleverages as It Resets for Profitable Growth
Aug 26, 2026
Domino’s Pizza Enterprises reported FY2026 results that reflect a strategic shift away from broad discounting toward more sustainable unit economics, lifting average franchise partner EBITDA to its highest level in four years and improving m...
Domino’s Pizza Enterprises to Present Full-Year 2026 Results to Investors
Aug 26, 2026
Domino’s Pizza Enterprises Limited is a major player in the quick-service restaurant industry, operating the Domino’s brand across Australia and other markets. The company focuses on pizza delivery and takeaway, leveraging digital plat...
Domino’s Cost Orders Stayed in Gall Class Action Pending Appeal
Aug 18, 2026
Domino’s Pizza Enterprises Limited has confirmed that cost orders issued on 3 August 2026 in the Gall class action have been stayed pending the outcome of the company’s appeal. As a result, the financial impact of the Gall proceedings ...
Domino’s Pizza Enterprises Updates Registered Office Address
Aug 13, 2026
Domino’s Pizza Enterprises has shifted its registered office and principal place of business from Level 4 to Level 5 within the same building on Kingsford Smith Drive in Hamilton, Queensland. The relocation is an administrative change that l...
Domino’s to Appeal Gall Class Action Ruling Amid Uncertain Financial Impact
Aug 10, 2026
Domino’s Pizza Enterprises has announced it will appeal the Federal Court judgment in the Gall class action, after being ordered to pay $11,869.33 plus interest and costs to the lead plaintiff. The company is seeking to stay the costs order ...
Domino’s appoints new director Andrew Gregory with performance-linked equity incentives
Aug 4, 2026
Domino’s Pizza Enterprises Limited has appointed Andrew Gregory as a director effective 5 August 2026, with an initial holding of 6,108 ordinary shares in the company. Under his executive services agreement, Gregory is also entitled to a gra...
Domino’s Confirms Andrew Gregory as Group CEO Amid Leadership Reset
Aug 4, 2026
Domino’s Pizza Enterprises has appointed Andrew Gregory as Group Chief Executive Officer and Managing Director, effective 5 August 2026, marking a key leadership transition at the ASX-listed pizza chain. Jack Cowin has simultaneously returne...
JPMorgan Ceases to Be Substantial Holder in Domino’s Pizza Enterprises
Jul 29, 2026
JPMorgan Chase Co. and its affiliates have notified Domino’s Pizza Enterprises Limited that they have ceased to be a substantial holder in the company as of 27 July 2026. The change reflects a combination of securities lending activity and ...
Domino’s boosts cash flow, cuts debt as it absorbs $259m in write-downs
Jul 29, 2026
Domino’s Pizza Enterprises Limited has reaffirmed its FY26 earnings guidance, with preliminary unaudited underlying NPAT expected between $118 million and $122 million and free cash flow around $164 million, up about $116.6 million on FY25. ...
Domino’s faces uncertainty after Federal Court ruling in wage class action
Jul 23, 2026
Domino’s Pizza Enterprises has been found by the Federal Court of Australia to have engaged in misleading and deceptive conduct over historical representations about the coverage of its certified enterprise agreements between 2013 and 2018. ...
Domino’s Issues New Employee Options Under Incentive Scheme
Jul 2, 2026
Domino’s Pizza Enterprises Limited has issued 5,591 unquoted options under its employee incentive scheme, with various expiry dates and exercise prices. The options, recorded against ASX code DMPAK, were issued on 30 June 2026 and are not in...
Domino’s Pizza Enterprises Reports Lapse of 227,750 Options
Jul 2, 2026
Domino’s Pizza Enterprises Limited operates in the quick-service restaurant industry, focusing on pizza delivery and takeaway. Listed on the ASX under the ticker DMP, the company manages a network of Domino’s-branded stores that serve ...
Domino’s Extends France and Belgium Franchise Deals Ahead of Renewal
Jun 30, 2026
Domino’s Pizza Enterprises has confirmed that its Master Franchise Agreements for France and Belgium, originally due to expire on 30 June 2026, are in the process of renewal. The company reports that negotiations are well advanced with broad...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.