Domino's Pizza books $200.1M FY26 underlying profit
- Domino's Pizza Enterprises reports full-year earnings for the period to June 30.
- Shares fall 11.65% despite underlying profit growth.
- Company targets profitable order growth for FY27.
Domino's Pizza Enterprises (ASX:DMP) announced an underlying EBIT of $200.1 million for FY26.
Network sales fell 6.8% to $3.87 billion, while same-store sales declined 4.1%. The group delivered strong free cash flow of $164.1 million, a +$116.6 million on FY25.
"Average franchise partner profitability improved +11.3%, free cash flow increased to $164.1 million and net leverage reduced to 1.86x," said Domino's Pizza Enterprises Group CEO & MD Andrew Gregory.
The company reduced net debt by $227.8 million while increasing its unfranked final dividend 51.2% to 32.5 cents.
Following the announcement, the Domino's Pizza Enterprises share price was down at $17.74.
The board has declared an unfranked final dividend of 32.5 cents per share.
"Our focus for FY27 is straightforward: restore profitable sales growth, deliver for customers, franchise partners and shareholders, and maintain disciplined capital allocation," Gregory added.
Average franchise partner profitability grew 11.3% to $105.7k EBITDA per store, marking a four-year high.
Free cash flow increased by $116.6 million to reach $164.1 million as management completed its operating reset.
