Domino's Pizza Enterprises Ltd posted a sharp divergence between cash generation and revenue performance in its fiscal 2026 results, as free cash flow surged 246.2% to $164.1 million despite a 6.8% decline in global network sales to $3.87 billion.
Underlying net profit after tax rose 4.0% to $121.6 million, though statutory net profit fell to a loss of $134.2 million from a prior loss of $3.7 million, driven by $255.7 million in post-tax balance sheet write-downs. Same-store sales declined 4.1% globally, a deterioration from the 0.2% decrease in fiscal 2025, while underlying EBIT edged up 1.0% to $200.1 million.
The company’s net leverage ratio improved to 1.86x from 2.57x, exceeding its 2.0x target, and total liquidity stood at $467.5 million, including $131.0 million in cash and equivalents. Net debt fell by $227.8 million to $497.0 million, supported by a refinancing completed in December 2025.
Regional performance varied, with Australia and New Zealand seeing underlying EBIT decline 5.9% and same-store sales fall 4.7%, while Europe reported a 2.6% increase in underlying EBIT despite a 4.7% revenue drop. Asia recorded the steepest regional decline, with same-store sales falling 6.7% and revenue down 17.5%, though underlying EBIT rose 19.7%.
Domino’s also highlighted operational adjustments, including a $5.95 delivery fee introduced in Western Australia in August, which coincided with five consecutive months of record franchisee EBITDA and positive carry-out comparable sales. The company has realized $35.3 million of its targeted $67.0 million in annualized cost savings, with an additional $15–25 million in savings expected. Capital expenditure decreased to $38.7 million from $86.8 million, while digital investments fell to $21.5 million.
The stock fell 11.43% to $17.79 following the presentation, reflecting investor concerns over revenue momentum despite the cash flow improvement.
