Domino's Pizza Enterprises (ASX:DMP) has released its financial results for the half-year of FY26, detailing a strategic shift toward prioritising franchise partner profitability over sales volume.
The group reported an underlying EBIT of $101.5 million, representing a 1% increase compared to the prior corresponding period.
However, network sales saw a decline of 1.6% to $2.04 billion, with same-store sales dropping by 2.5%.
The company attributed the figures to a deliberate reduction in "blanket discounting" aimed at strengthening store-level economics and improving contribution margins per order.
While this led to a short-term moderation in order volumes, franchise partner profitability rose by 4.5% to an average of $103,000 EBITDA on a rolling 12-month basis—the highest level recorded in three years.
Performance varied by region, with improved results in selected European markets being offset by softer trading conditions in Australia, Japan, and France.
The group strengthened its balance sheet through robust free cash flow and debt reduction.
The board declared an unfranked interim dividend of 25 cents per share, a 16.3% increase over the FY25 final dividend.
Management reaffirmed its full-year guidance, stating that the refreshed leadership team remains focused on cost-saving initiatives and disciplined execution.