Domino's Pizza Group (DOM) H2 2025 (Q&A) earnings summary

Executive summary

• Achieved #1 market share in UK & Ireland pizza takeaway, with 52.6% value share, up 7.5ppt year-over-year, and delivered a solid finish to 2025 after a challenging start, building momentum into 2026.

• Over 12 million loyal customers, with 8 million on the app; 90% of system sales are digital.

• Successfully launched Chick ’n’ Dip, driving higher basket sizes and attracting new, younger customers.

• Franchisee profitability declined 4% year-over-year but outperformed initial expectations.

• Board increased dividend, reflecting confidence in strategy and future growth.

Financial highlights

• System sales reached £1,595.6m, up 1.5% year-over-year; DPG revenue £685.4m, up 3.2%.

• Franchisee average profit per store was GBP 161,600, down 4% year-over-year but better than feared.

• Underlying EBITDA £133.9m, down 6.6%; underlying EPS 17.6p, down 13.7%.

• Free cash flow £80.7m, down 4.7%; proposed full-year dividend per share 7.7p, up 2.7%.

• Significant gain from sale of Full House (GBP 70.7 million cash in), but impairment on Shorecal (12% of carrying value).

Outlook and guidance

• Positive trading momentum from Christmas 2025 has continued into early 2026.

• Expecting profit growth for franchisees and the company in 2026, with positive momentum from new product launches.

• Guidance for around 25 new store openings in 2026, with a strong pipeline of identified sites.

• FY26 guidance: depreciation/amortisation mid-£20m, interest c.£21m, tax rate c.25%, capex c.£35m.

• CapEx to normalize after 2027, with current elevated levels due to supply chain center and automation projects.