Domino’s Pizza Enterprises has released its full-year results, revealing a lift to average franchisee profitability but a statutory net loss of $134.2 million.
While revenue was down 11.2 per cent year on year, to $2,046.1 million, same-store sales fell by 4.1 per cent, and network sales declined 6.8 per cent, underlying profit for the group rose 4 per cent from the 2025 figures to $121.6 million.
Group EBIT increased despite lower profit from store sales. Tighter cost control, disciplined headcount and reduced discretionary spend in the second half contributed to group margin stability.
The underlying ANZ EBIT dropped 5.9 per cent on last year’s figure. The softer numbers in Australia and New Zealand were countered by more robust results in Europe and Asia.
Executive Chairman Jack Cowin described FY2026 as a year of disciplined execution.
“We made deliberate decisions to strengthen franchise partner profitability, simplify the customer proposition and improve the economics of our business,” Cowin said. “The results show meaningful progress, but with more work to do, particularly in building customer frequency and profitable order growth.
“We made a conscious trade-off: fewer low-margin orders in the short term to build a stronger, more sustainable system. We also delivered significant cost progress, with $67m of annualised savings actioned and $35.3m realised in FY26.
“The leadership team is now in place and the business is simpler. Our objective for FY27 is to rebuild profitable customer order growth while continuing to support franchise partner returns and shareholder value.”
Pricing reset helps boost franchisee profitability
The average global franchisee EBITDA rose by 11.3 per cent to $105,700, representing a per-store average rolling 12-month figure as at Q3 FY26. Store EBITDA margins lifted 0.8 per cent to 7.9 per cent.
The shift away from discounting to help boost franchisee economics resulted in moderated sales volumes in the ANZ market. However the customer spend and costs and food savings helped lift franchisee profitability.
Domino’s reset its pricing strategy in September, removing its broad web and weekly big deal offers. The decisive step was too bold, it admits, taking out too much value too quickly.
The pizza chain resolved this measure between October and January, when it introduced specific carry-out offers and tested lower delivery fees, both tactics proving crucial to rebalance the numbers.
In Western Australia, where Domino’s tested a set menu price for delivery and pick-up, with a low delivery fee, stores outperformed the rest of Australia with same-store sales in the last quarter, compared to the prior corresponding period.
Group CEO & MD Andrew Gregory said the business will build on the lessons from the WA pricing model and apply proven initiatives more broadly across the network.
“We remain focused on growing customer orders through clearer value, high-quality meals and more relevant offers, without compromising profitability,” he said.
“FY26 has materially strengthened the business. The task now is to convert those stronger
foundations into profitable order growth.”
In FY27 Domino’s will deploy the same menu price for pickup and delivery; a delivery-fee pricing reset; and lower voucher-led discounts.
The pizza chain has set out its sustainable growth model, with a target of $130,000 average global franchisee EBITDA. To achieve this it will focus on lower costs and stronger margins, higher average ticket prices, restoring volume, driving store productivity, improving issue ownership and resolution, and delivering procurement savings.
