Domino’s Pizza Enterprises has warned of store closures and losses ahead of its full-year earning report but still expects after-tax profits of between $118 million and $122 million.
The company will close 60 company-owned stores internationally – 25 in Europe, 29 across ANZ, and six in Asia. Store underperformance in France and Taiwan, and its IT software projects, have contributed to DPE recognising $259 million in write-downs.
Same-store sales are down by 4.1 per cent as a result of the focus on profitable and sustainable sales growth rather than headline growth. Long-term franchisee profitability has been a priority, with unit economics boosted through pricing optimisation, promotional discipline and operational efficiencies.
As a result, franchisee profitability improved, with rolling 12-month Q3FY26 franchisee EBITDA lifted 11.3 per cent on a constant currency basis.
Franchisees participating in refinements to the Western Australia pricing and operating model achieved record store EBITDA for five consecutive months. In New Zealand the same disciplined focus on order quality, product mix and operational execution brought materially stronger profitability. This model is expected to rollout across Australia during FY27.
Group COO and CFO George Saoud said the financial year has been one of “disciplined execution”.
“We have delivered against the key operational and financial objectives established at the beginning of the year, including executing our cost-out program, successfully refinancing the Group’s debt facilities, improving free cash flow generation, enhancing franchisee profitability, successfully piloting the new operating model in Western Australia, which increased franchise partner earnings and will be the blueprint for a broader national roll-out, and delivering on our underlying earnings guidance.”
Saoud said the group is well positioned to execute its strategic priorities and drive sustainable long-term growth.
Executive chairman Jack Cowin said “A comprehensive review of the company’s balance sheet has been undertaken to ensure the carrying values of our assets appropriately reflect current market conditions, our revised strategic priorities and the long-term outlook for each business.”
Former McDonald’s ANZ boss Andrew Gregory takes up the group CEO role on 5 August, with an immediate priority to improve sales growth, franchisee profitability and long-term shareholder returns.
