Domino's Pizza Enterprises Ltd reported a net loss of A$134.2 million for the year ended June 28, 2026, compared with a narrow profit in the prior year, as impairments and restructuring costs totaling A$316.1 million outweighed revenue declines and cost reductions.
The company, which operates as the master franchisee for the Domino's brand across Australia, New Zealand, Europe, and parts of Asia, recorded revenue of A$2.05 billion, down 11.2% from the prior year. Excluding one-off items, underlying net profit after tax rose 4.0% to A$121.6 million, in line with guidance provided.
Total significant items included impairments on operations in France and Taiwan, accelerated amortization of technology investments, and costs related to store closures. The company plans to permanently close up to 60 stores across its regions as part of its restructuring efforts.
Franchisee profitability increased 11.3% to A$105,700 per store over the 12 months to the third quarter, marking the highest level in four years but remaining below the long-term target of A$130,000. Annualized cost reductions totaled A$67 million, driven by lower headcount, reduced technology spending, and supplier cost efficiencies.
Net debt decreased by A$227.8 million, while net leverage fell to 1.86 times from 2.57 times in the prior year. The company declared a final dividend of 32.5 Australian cents per share, unfranked, bringing the full-year dividend total to 57.5 cents, including an interim payout of 25.0 cents. Payment is scheduled for November 30.
Domino's also outlined plans to extend a revised pricing and store operating model across Australia during fiscal 2027, following a successful trial in Western Australia that lifted average store earnings by more than 30% despite lower sales volumes.
