Key points
- Franchise partner profitability increased by 11.3% to $105.7k rolling 12-month EBITDA per store
- Operating reset with lower cost base and improved operating discipline
- Strong free cash flow of $164.1m and $227.8m net debt reduction
Full summary
Domino's Pizza Enterprises Ltd announced its FY26 results, highlighting increased franchise partner profitability, a lower cost base, and a strengthened balance sheet. Average store EBITDA margin improved to 7.9%, and net debt was reduced by $227.8 million, bringing net leverage to 1.86x. The company reduced broad discounting and tested targeted value models, particularly in Western Australia, where carry-out sales grew. While global order volumes remain below target, the focus for FY27 is on rebuilding customer frequency with clearer value and more relevant offers.
Guidance
FY27 focus on rebuilding profitable customer order growth.
Outlook
Domino's plans to restore profitable sales growth in FY27 by focusing on clearer value, high-quality meals, and relevant offers, leveraging lessons from the Western Australia pricing model.