Domino's Pizza Enterprises (DMP) H2 2025 earnings summary

Executive summary

• Network sales reached $4.15 billion across 12 countries and 3,500 restaurants, down 0.9% year-over-year, with underlying net profit after tax of $116.9 million for FY2025, reflecting a 2.8% decline.

• A strategic reset is underway, focusing on cost reduction, operational efficiency, margin improvement, and a shift from heavy discounting to transparent, everyday value pricing.

• Franchisee profitability is a top priority, with aggressive action plans to reduce SG&A costs, reinvest savings into marketing and operational support, and empower local decision-making.

• Leadership changes include a new CFO and new leadership in key markets such as France and Japan, as well as a new CMO and regional CEOs.

Financial highlights

• Underlying EBIT was $198.1 million, down 4.6% year-over-year; underlying NPAT was $116.9 million, down 2.8%.

• Franchisee EBITDA averaged $95,000 per store, stable year-over-year.

• Free cash flow was $47.4 million after absorbing $58.1 million in non-recurring outflows; ongoing free cash flow was $105.5 million.

• Final dividend declared at $0.215 per share, with a total payout of $0.77 per share for the year and a 35% payout ratio; DRP maintained but underwriting removed.

• Net debt ended at $724.8 million, leverage ratio at 2.57x, with a target to reduce below 2x EBITDA in 12-24 months.

Outlook and guidance

• Management expects improved profitability in FY2026, driven by cost reductions, increased marketing investment, and a new pricing strategy.

• No capital raise is planned; focus remains on deleveraging, reinvesting in growth, and selective store network expansion.

• Same-store sales are expected to improve as marketing spend increases and operational changes take effect.

• New store openings will be pursued only where sustainable profitability and meaningful ROI are expected.