Full Year 2026 Domino's Pizza Enterprises Ltd Earnings Call Transcript
Key Points
- Franchisee profitability improved significantly, with average store EBITDA up 11.3% to $105,700 and store margin up from 7.1% to 7.9%.
- Free cash flow surged by $116.6 million to $164.1 million, and net debt was reduced by $227.8 million, strengthening the balance sheet.
- Underlying net profit after tax increased 4% to $121.6 million, and the dividend was raised by 51.2% to $0.325 per share.
- Cost savings program delivered $67 million in annualized savings, with $35.3 million realized in FY26 and further opportunities identified.
- Western Australia trial showed encouraging results, with record franchisee EBITDA, positive carryout comps, and improved delivery conversion after lowering delivery fees.
- Group same-store sales declined 4.1% in FY26, with a further 5.8% decline in the first seven weeks of FY27, indicating ongoing sales weakness.
- Order counts fell significantly, down approximately 11%, as the company moved away from heavy discounting, impacting volume.
- Statutory results included a substantial $255.7 million post-tax write-down, reflecting impairments in France, Taiwan, and technology assets.
- France and Germany continue to face trading challenges, with France's EBIT near breakeven and Germany's second-half performance softening.
- The company expects FY27 to be a transition year, with positive sales growth not expected until later, and order count recovery will lag.
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Good morning, and thank you for joining the Domino's Pizza Enterprises Limited FY26 full-year results investor call. I'm Nathan Scholz, the Chief Communications and Investor Relations Officer.
This morning, you'll be hearing from Chairman Jack Cowin; Group CEO and Managing Director, Andrew Gregory; and Group COO and CFO, George Saoud. After the presentations, we will have a Q&A. Analysts will have the option to select raise hand, and then you'll be unmuted to ask a question and a follow-up.
With that, I'll pass to Chairman Jack Cowin.
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Good morning, and thank you for joining us.
12 months ago, I said this business needed a reset. I want to start with what we said we would do. and what we have done. We said we would rebuild franchisee profitability.
Average franchisee EBITDA
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