Domino's Pizza Enterprises (DMP) Trading update summary

Financial performance and balance sheet

• Underlying NPAT expected between AUD 118 million and AUD 122 million, reaffirming prior guidance.

• Free cash flow projected at approximately AUD 164 million, up AUD 117 million year-on-year.

• Net leverage reduced to around 1.9x EBITDA, meeting targets and strengthening the balance sheet.

• Completed AUD 1.05 billion refinancing, improving pricing and flexibility.

• FY26 statutory loss expected due to write-downs and non-recurring charges, but underlying NPAT supports a full-year dividend.

Balance sheet review and write-downs

• Write-downs of approximately AUD 259 million, mostly non-cash, reset asset values and reflect strategic priorities.

• Major impairments include AUD 70.5 million for France and AUD 45.7 million for Taiwan, reflecting underperformance and revised growth assumptions.

• IT development costs write-off of AUD 43.8 million due to strategic realignment.

• Store-related asset write-downs of AUD 69 million linked to closures and refranchising, with up to 60 stores to close.

• Additional AUD 30 million in provisions for inventory, franchisee loans, and other adjustments.

Franchisee profitability and operational changes

• Average franchisee EBITDA rose over 11% to AUD 105,700 for the rolling 12 months to Q3 FY26.

• WA pilot saw average store EBITDA improve by 30% over five months, with plans for national rollout.

• New Zealand franchisee EBITDA up over 22%.

• Cost-out program delivered AUD 60–70 million in annualized savings, mainly from headcount, IT, and supplier costs.

• Focus on profitable order growth, supplier cost reduction, and store productivity.