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Domino's Pizza swings to annual loss on A$316m writedowns, underlying profit rises 4%

Net loss of A$134.2m reported for FY26 as impairments and restructuring costs offset revenue decline of 11.2%. Underlying profit rose to A$121.6m, matching guidance.

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Priya Anand · Equities & Earnings Desk · 31 Aug 2026 · 03:14 · 1 min read
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Domino's Pizza swings to annual loss on A$316m writedowns, underlying profit rises 4%

Domino's Pizza Enterprises Ltd reported a net loss of A$134.2 million for the fiscal year ended June 28, 2026, following A$316.1 million in non-recurring charges. The impairments included write-downs on operations in France and Taiwan, accelerated amortization of technology assets, and costs tied to store closures.

Revenue declined 11.2% year-over-year to A$2.05 billion, reflecting weaker trading conditions across its markets. Excluding one-off items, underlying net profit after tax rose 4.0% to A$121.6 million, in line with company guidance. Franchisee profitability increased 11.3% to A$105,700 per store over the 12 months to the third quarter, the highest level in four years but still below the long-term target of A$130,000.

The group reduced annualized costs by A$67 million through lower headcount, reduced technology spending, and tighter supplier negotiations. Net debt decreased by A$227.8 million, while net leverage fell to 1.86 times from 2.57 times a year earlier.

Domino's declared a final dividend of 32.5 Australian cents per share, unfranked, payable on November 30. The full-year dividend totaled 57.5 cents per share, including an interim payout of 25.0 cents.

The company plans to permanently close up to 60 stores across its operating regions as part of its restructuring program. A trial in Western Australia lifted average store earnings by more than 30% despite lower sales volumes, and Domino's intends to extend the revised pricing and store operating model across Australia during fiscal 2027.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Priya Anand
Equities & Earnings Desk

Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.

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