Domino's Pizza Enterprises Ltd reported a 246% surge in free cash flow to $164.1 million for fiscal 2026, even as global network sales fell 6.8% to $3.87 billion and same-store sales declined 4.1%.
Underlying earnings before interest and tax edged up 1.0% to $200.1 million, supported by $35.3 million in realized cost savings, while underlying net profit after tax increased 4.0% to $121.6 million. Statutory net profit, however, dropped to a loss of $134.2 million from a $3.7 million loss in the prior year, primarily due to $255.7 million in post-tax balance sheet impairments across operations in France, Taiwan, and underperforming stores.
Net debt fell by $227.8 million to $497.0 million, pushing the net leverage ratio down to 1.86x from 2.57x, below the target of 2.0x. Total liquidity stood at $467.5 million, comprising $131.0 million in cash and $336.5 million in undrawn committed debt facilities. The company completed a $1.05 billion refinancing in December 2025, reducing interest costs by $4.8 million.
Same-store sales declined across all regions, with Asia posting the steepest drop at 6.7%, followed by Australia and New Zealand at 4.7% and Europe at 2.2%. Underlying EBIT fell 5.9% in Australia and New Zealand to $122.9 million, while rising 2.6% in Europe to $74.9 million and 19.7% in Asia to $34.7 million.
The company implemented a $5.95 delivery fee in Western Australia in August as part of a pricing trial that began in September 2025. The trial progressed through reset, learn, and rebalance phases, culminating in five consecutive months of record franchisee EBITDA and positive carry-out comparable sales. Franchisee EBITDA per store averaged $105.7k in Q3 FY26, up 11.3% from the prior year, though still below the $130k global target. Order counts declined by an estimated 10-11% over the year.
Capital expenditure declined to $38.7 million from $86.8 million, with digital investments falling to $21.5 million. The final dividend increased 51.2% to 32.5 cents per share, representing a 50% payout ratio of second-half underlying net profit after tax.
Group same-store sales growth remained negative in the first eight weeks of fiscal 2027, at -5.8%, compared with -2.5% in the first half of FY26 and -5.7% in the second half.
