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 finished 2025 with strong momentum for 2026.

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

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

• Recognized with multiple industry awards for brand, inclusion, training, PR, charity partnership, and customer service.

• No plans to pursue a second brand; focus remains on core pizza and complementary chicken offerings.

Financial highlights

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

• Franchisee profitability averaged GBP 161,600 per store, down 4% year-over-year but better than expected.

• 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 the sale of Full House (GBP 70.7 million cash in/£9.9m gain), but impairment of Shorecal (12% of carrying value/£10.4m) due to labor cost increases and slower store openings.

Outlook and guidance

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

• Confident in achieving 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.

• Franchisee profit growth expected to return in 2026, supported by lower food costs and positive early results from chicken.

• Medium- to long-term aspiration for 2,000 stores and GBP 2.5 billion system sales remains, but timeline may extend beyond 2033.