Domino's Pizza Enterprises Limited

First-half FY26 EBIT was $101.5 million, up 1% versus the prior corresponding period. NPAT was $60.1 million, up 2.2%, and free cash flow was $70.6 million, $40.6 million above last year. Network sales were $2.04 billion, with same-store sales down 2.5%; Jack Cowin said year-to-date sales including the first trading week of H2 were down 3.6%. Franchisee profitability rose 4.5% to $103,000 per store on a rolling 12-month basis, the highest level in three years. Total debt fell by $196.1 million, net debt by $114.2 million, and net leverage was 2.21x with interest coverage at 19.8x. The interim dividend was increased to $0.25 per share. For FY26, management said full-year results should be in line with AGM guidance and market expectations at the time, and later clarified they are looking to beat the consensus that existed then.

Jack Cowin framed the half as a deliberate reset away from a discount-led model toward everyday value pricing and stronger unit economics. He repeatedly emphasized that the priority is franchisee profitability first, saying the business is getting “out of the discount business” and that sales softness is the tradeoff for rebuilding the system on a more profitable base. His tone was confident and patient on the turnaround, with repeated comments that once economics improve, volume and new store openings should follow.

George Saoud said the reset is being funded from within through disciplined cash generation, lower capex and tighter capital allocation. He cited EBIT of $101.5 million, NPAT of $60.1 million, free cash flow of $70.6 million, total debt reduction of $196.1 million and net leverage of 2.21x, moving toward a target of around 2x; he also noted interest coverage of 19.8x. He said $55 million of cost savings have been actioned, the broader program still targets $60 million to $70 million of annualized savings, and a second phase could add $15 million to $25 million annually. He also said the business remains on track to beat the consensus from the time of the call and that the $0.25 interim dividend balances deleveraging with reinvestment.

Analysts focused on the apparent tension between softer sales and management’s upbeat reset narrative, especially whether same-store sales could keep worsening and how long the company could tolerate that. Management said the sales decline is expected because it is intentionally reducing heavy discounting and winning back customers will take time, but Jack Cowin said the latest weekly trading had recovered to flat and that sensible promotions should help bring price-sensitive customers back over the next 12 months. Questions also probed whether the WA pricing trial is a net positive for shareholders, with management saying it improves franchisee returns even if near-term warehouse volumes and EBIT are pressured. Other questions covered DPZ’s stance, cost-savings timing, GLP-1 consumer impacts, M&A interest in regions, Malaysia refranchising, Japan’s weak profitability, France’s execution issues, and the 20 to 40 new-store plan; management’s consistent answer was that returns-led growth, not headline growth, is the priority.