Half Year 2025 Market Presentation
| Stock | Domino's PIZZA Enterprises Ltd (DMP.ASX) |
|---|---|
| Release Time | 25 Feb 2025, 8:01 a.m. |
| Price Sensitive | Yes |
Domino's Pizza Enterprises Ltd Reports H1 2025 Results
- Network sales growth of 65.0% and underlying EBIT growth of -23.0% vs. H1 2024
- Initiatives underway to improve unit economics and drive growth
- Roadmap to reach long-term full potential being developed
Domino's Pizza Enterprises Ltd reported its H1 2025 results, highlighting the resilience of its franchise business model in a challenging environment. The company's network sales grew by 65.0% and underlying EBIT declined by 23.0% compared to H1 2024. Domino's is developing a clear plan to build a simpler and more consistent business, with early wins from the execution of initiatives to improve the top line and bottom line. The company is focused on enhancing its customer proposition through improvements in food quality, value, and experience, and is also implementing cost efficiencies and store optimisation measures. Domino's is committed to returning to profitable growth and delivering improved franchise partner and shareholder returns. A roadmap to reach the company's long-term full potential is being developed, which will include an updated algorithm for same-store sales growth and new store openings. The near-term focus is on improving franchise partner profitability to deliver on this potential, with organic growth to occur through existing franchise partners growing their network. Decisive action has delivered early wins, allowing Domino's and its franchise partners to reinvest in their shared future.
Domino's intends to use the benefits of its cost efficiency and store optimisation initiatives to reinvest in the franchise partner network, with the size of the total savings pool and the appropriate division with the franchise partner network still to be determined.
Domino's is developing a roadmap to reach its long-term full potential, which will include an updated algorithm for same-store sales growth and new store openings. The near-term focus is on improving franchise partner profitability to deliver on this potential, with organic growth to occur through existing franchise partners growing their network.