Domino's Pizza Enterprises Limited

FY '26 network sales were $3.87 billion, down 6.8%, and same-store sales declined 4.1%. Underlying EBIT increased 1.0% to $200.1 million, underlying NPAT increased 4% to $121.6 million, and free cash flow before divestments rose by $116.6 million to $164.1 million. Net debt fell by $227.8 million to $497 million, net leverage improved from 2.57x to 1.86x, and interest coverage improved to 20.6x. The final dividend was $0.325 per share, up 51.2%. Management said FY '27 is expected to start driving positive sales growth, but no FY '27 earnings guidance was provided.

Jack Cowin framed FY '26 as a successful reset that restored franchisee profitability and strengthened the balance sheet, but at the cost of sales and order volume. He stressed that the business had been over-reliant on discounting and said the next phase is about rebuilding profitable orders without giving back the economics already restored. His tone was confident and emphatic, repeatedly stressing that the franchise model only works when store operators make enough money to invest and serve customers well.

George Saoud said FY '26 was a necessary reset and highlighted the main financial wins: $3.87 billion of network sales, $200.1 million of underlying EBIT, $121.6 million of underlying NPAT, and $164.1 million of free cash flow before divestments. He pointed to $67 million of annualized savings actioned, with $35.3 million realized in FY '26, plus a $48.1 million reduction in capex to $38.7 million. He also noted net debt of $497 million, leverage of 1.86x, $467.5 million of cash and undrawn committed facilities, and digital investment expected in the range of $30 million to $45 million going forward.

Analysts focused on how much cost savings would flow into FY '27, with management saying the remaining $100 million savings program will be realized across FY '27 and FY '28, and that the FY '27 amount should be a material component. Questions also probed the decline in order count versus ticket, with management saying order count is down around 10% to 11% while ticket is up about 5%, and that the trend in large markets is stable or slightly improving but not yet clearly reversed. On Western Australia, management said carryout is now positive, lower delivery fees are showing better conversion, and the market is serving as the template for more disciplined value architecture. Analysts also asked about France, Japan, and possible divestments; management said France EBITDA is positive with improving sales momentum, Japan has benefited from store closures, and there are no plans to sell markets because the priority is to fix unit economics and rebuild growth.