tiprankstipranks
Trending News
More News >
Domino's Pizza Enterprises Limited (AU:DMP)
ASX:DMP

Domino's Pizza Enterprises Limited (DMP) AI Stock Analysis

Compare
139 Followers

Top Page

AU:DMP

Domino's Pizza Enterprises Limited

(Sydney:DMP)

Select Model
Select Model
Select Model
Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
AU$25.00
▲(9.41% Upside)
The overall stock score is primarily influenced by financial performance challenges, particularly in profitability and cash flow management. Technical analysis shows positive momentum, but the valuation remains a concern due to the negative P/E ratio. The dividend yield provides some support to the score.
Positive Factors
Vertically integrated supply chain
Vertical integration gives DMP durable margin capture and procurement scale. Controlling supply and distribution reduces unit cost volatility, supports consistent product quality for franchisees, and creates recurring B2B revenue streams that bolster cash flow and franchise economics over the medium term.
Master franchise scale and brand access
Holding master franchise rights across markets provides structural advantages: brand recognition, established product/marketing frameworks, and fee-based revenue from franchisees. This model limits capital intensity for growth, enables steady royalty streams, and supports resilient market position over coming quarters.
Material gross margin improvement
A large uplift in gross margin indicates lasting improvements in pricing, input costs, or supply efficiency. Higher gross margins create a buffer to absorb operating expenses, support margin recovery initiatives, and improve the path to sustainable profitability if operating cost structure is managed consistently.
Negative Factors
High financial leverage
Substantial leverage raises long-term financial risk: interest burden and covenant pressure can limit capital allocation, constrain franchise investment and buybacks, and reduce flexibility in downturns. High debt levels heighten refinancing and liquidity sensitivity over the next several quarters.
Weak free cash flow generation
A sharp drop in free cash flow and negative operating cash to income ratio signal difficulty converting earnings to cash. This undermines the company’s ability to service debt, invest in store growth or return capital, making recovery and strategic investments harder absent cash flow improvement.
Profitability pressures and margin erosion
Negative net income and shrinking EBIT/EBITDA margins reflect operational and expense-control issues. Persistent profitability weakness reduces retained earnings, harms return on equity, and limits reinvestment capacity — structural constraints that must be resolved to restore long-term financial health.

Domino's Pizza Enterprises Limited (DMP) vs. iShares MSCI Australia ETF (EWA)

Domino's Pizza Enterprises Limited Business Overview & Revenue Model

Company DescriptionDomino's Pizza Enterprises Limited operates retail food outlets. The company holds franchise rights for the Domino's brand in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Denmark, and Taiwan. It operates a network of 3,396 stores. Domino's Pizza Enterprises Limited was founded in 1983 and is based in Brisbane, Australia.
How the Company Makes MoneyDomino's generates revenue primarily through the sale of its food products, which includes pizzas, sides, and desserts. The company operates on a franchise model, with a significant portion of its earnings coming from franchise fees and ongoing royalties paid by franchisees based on their sales. Additionally, Domino's benefits from partnerships with third-party delivery services, enhancing its delivery capabilities and reach. The company also invests in technology and marketing to drive online sales, which have become an increasingly important revenue stream, particularly during periods of high demand for delivery services.

Domino's Pizza Enterprises Limited Financial Statement Overview

Summary
Domino's Pizza Enterprises Limited faces challenges in profitability and cash flow management, despite some improvements in gross profit margin and equity. The high leverage and negative net income are significant concerns that need to be addressed to ensure long-term financial health.
Income Statement
65
Positive
Domino's Pizza Enterprises Limited shows a mixed performance in its income statement. The company experienced a slight revenue growth of 1.19% in 2025, but net income turned negative, indicating profitability challenges. Gross profit margin improved significantly from 30.86% in 2024 to 56.67% in 2025, suggesting better cost management. However, the negative net profit margin in 2025 highlights issues in controlling overall expenses. EBIT and EBITDA margins have decreased, reflecting operational inefficiencies.
Balance Sheet
60
Neutral
The balance sheet reveals a high debt-to-equity ratio of 2.26 in 2025, indicating significant leverage and potential financial risk. Stockholders' equity has increased, showing some improvement in financial stability. Return on equity has turned negative due to the net loss, which is a concern. The equity ratio is relatively stable, suggesting a balanced asset structure.
Cash Flow
55
Neutral
Cash flow analysis shows a decline in free cash flow growth by 45.51% in 2025, indicating cash generation issues. The operating cash flow to net income ratio is negative due to the net loss, which raises concerns about cash flow sustainability. Free cash flow to net income ratio is also negative, reflecting challenges in converting profits into cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.30B2.30B2.37B2.34B2.27B2.19B
Gross Profit679.81M1.30B731.50M587.23M634.83M626.62M
EBITDA280.94M179.74M324.55M279.38M380.55M421.79M
Net Income-3.70M-3.70M95.96M40.57M158.72M184.01M
Balance Sheet
Total Assets2.67B2.67B2.59B2.88B2.43B2.35B
Cash, Cash Equivalents and Short-Term Investments153.50M153.50M87.65M159.89M76.88M174.69M
Total Debt1.50B1.50B1.44B1.74B1.41B1.27B
Total Liabilities2.01B2.01B1.98B2.36B2.01B1.96B
Stockholders Equity663.09M663.09M609.55M520.52M421.96M395.14M
Cash Flow
Free Cash Flow138.40M91.39M146.78M103.13M-1.95M230.51M
Operating Cash Flow167.18M167.18M236.97M260.79M190.12M373.25M
Investing Cash Flow-54.39M-54.39M-66.01M-487.94M-233.28M-97.46M
Financing Cash Flow-54.65M-54.65M-239.09M314.12M-49.95M-329.90M

Domino's Pizza Enterprises Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price22.85
Price Trends
50DMA
22.33
Positive
100DMA
18.96
Positive
200DMA
19.65
Positive
Market Momentum
MACD
0.53
Positive
RSI
48.35
Neutral
STOCH
41.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DMP, the sentiment is Neutral. The current price of 22.85 is below the 20-day moving average (MA) of 23.20, above the 50-day MA of 22.33, and above the 200-day MA of 19.65, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 41.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:DMP.

Domino's Pizza Enterprises Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$204.60M11.678.86%4.13%11.62%
69
Neutral
AU$1.26B106.852.90%2.67%4.61%-76.47%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
59
Neutral
$2.16B-491.40-0.70%3.58%-3.09%-104.37%
51
Neutral
AU$93.70M-6.22-6.95%10.13%-353.94%
51
Neutral
AU$2.27B157.293.94%0.56%27.40%
41
Neutral
AU$4.87M-1.75-6.32%-9.62%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DMP
Domino's Pizza Enterprises Limited
22.85
-5.42
-19.18%
AU:CKF
Collins Foods
10.68
3.50
48.77%
AU:RFG
Retail Food Group
1.49
-0.64
-29.95%
AU:OLI
Oliver's Real Food Ltd.
0.01
0.00
0.00%
AU:MTO
Motorcycle Holdings Ltd.
2.77
1.11
66.87%
AU:GYG
Guzman y Gomez Ltd.
22.18
-17.50
-44.10%

Domino's Pizza Enterprises Limited Corporate Events

Domino’s Refreshes Board as Veteran Director Retires and Retail Veteran Judith Swales Joins
Jan 27, 2026

Domino’s Pizza Enterprises has announced the appointment of experienced retail executive Judith Swales as an Independent Non-Executive Director, effective 24 February 2026, while long-serving Director and former franchisee Grant Bourke will retire from the board on the same date after nearly 25 years of service. Swales, who currently chairs Super Retail Group and has held senior roles at Fonterra, Heinz, Goodyear Dunlop and various Australian and UK retailers, will join Domino’s Audit and Risk, Nomination, Culture and Remuneration, and Independent Board committees, bolstering governance and strategic oversight as the company continues its board renewal process and initiates a search for an additional Non-Executive Director, signaling a planned generational shift in leadership that may influence future operational and strategic direction.

The most recent analyst rating on (AU:DMP) stock is a Hold with a A$25.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Pizza Enterprises Cancels Over 123,000 Lapsing Options
Jan 13, 2026

Domino’s Pizza Enterprises Limited has notified the market that 123,198 options (DMPAK), which were due to expire on various dates at various exercise prices, have lapsed because the conditions attached to these conditional rights were not met or can no longer be satisfied as of 31 December 2025. The cessation of these options results in a reduction of potential future dilution for existing shareholders and reflects an adjustment to the company’s issued capital structure, but does not involve any change to its ordinary shares on issue or indicate an immediate shift in operating performance.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$24.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Pizza Enterprises bolsters leadership team to drive turnaround and growth
Jan 12, 2026

Domino’s Pizza Enterprises has strengthened its executive ranks with two senior leadership appointments aimed at advancing its turnaround priorities and operational performance. The company has named veteran quick service restaurant executive Merrill Pereyra as Chief Executive Officer for Australia and New Zealand, effective 23 January, leveraging his more than 30 years of experience, including leadership roles at McDonald’s, Yum! Brands, and as CEO of Domino’s Pizza Indonesia, where he has a track record of improving same-store sales, franchise relationships and unit economics. In a parallel move, Group Chief Financial Officer George Saoud has assumed the additional role of Group Chief Operating Officer, taking responsibility for technology and procurement and supply chain alongside finance and capital management, a consolidation intended to support disciplined execution, cost management and sustainable growth across Domino’s global operations. These changes underscore the board’s focus on operational leadership and executing a turnaround, while the search for a permanent Group Chief Executive Officer continues.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$24.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Pizza Enterprises Completes Group Debt Refinancing to Bolster Capital Flexibility
Dec 23, 2025

Domino’s Pizza Enterprises has completed its previously announced group debt refinancing, with all conditions precedent satisfied and the new facilities now fully effective. The new debt package replaces existing borrowings and delivers a more flexible capital structure, featuring extended maturities and enhanced liquidity, which the company says will better support its strategic and operational priorities. The terms of the facilities are materially unchanged from those disclosed in early November, signalling financial continuity while strengthening the balance sheet and potentially improving Domino’s ability to invest, manage risk and navigate market conditions.

The most recent analyst rating on (AU:DMP) stock is a Sell with a A$19.85 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Releases Sustainability Report for FY2025
Dec 19, 2025

Domino’s Pizza Enterprises has released its Sustainability Report for the 2025 financial year, covering the period ended 29 June 2025 and detailing its environmental, social and governance performance. The publication of this report underscores the company’s ongoing commitment to corporate responsibility and transparency, providing stakeholders with updated disclosure on how sustainability considerations are being integrated into its operations and long‑term strategy.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$25.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Pizza Enterprises Approves Key Resolutions at 2025 AGM
Nov 12, 2025

At the 2025 Annual General Meeting, Domino’s Pizza Enterprises Limited successfully passed several key resolutions, including the adoption of the Remuneration Report and the election and re-election of directors. These decisions are expected to influence the company’s governance and strategic direction, potentially impacting its market position and stakeholder relations.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$19.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Pizza Enterprises Limited 2025 AGM Announcement
Nov 12, 2025

Domino’s Pizza Enterprises Limited has released a presentation and prepared remarks for its 2025 Annual General Meeting, indicating ongoing transparency and communication with its stakeholders. This announcement may impact investor relations and market perceptions as the company continues to engage with its shareholders and the broader market.

The most recent analyst rating on (AU:DMP) stock is a Buy with a A$19.00 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Issues Unquoted Securities Under Employee Incentive Scheme
Nov 5, 2025

Domino’s Pizza Enterprises Limited announced the issuance of 27,508 unquoted securities under an employee incentive scheme, which are subject to transfer restrictions. This move is part of the company’s strategy to incentivize employees, potentially impacting its operational efficiency and aligning employee interests with company performance.

The most recent analyst rating on (AU:DMP) stock is a Hold with a A$17.50 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Completes Sale of Impressu Print Group
Nov 4, 2025

Domino’s Pizza Enterprises Ltd has announced the completion of the sale of its Impressu Print Group subsidiary. This move is part of the company’s strategic efforts to streamline operations and focus more on its core business of pizza delivery and takeaway services, potentially enhancing its market positioning and operational efficiency.

The most recent analyst rating on (AU:DMP) stock is a Hold with a A$17.50 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Pizza Enterprises Limited Announces Cessation of Securities
Nov 4, 2025

Domino’s Pizza Enterprises Limited announced the cessation of 48,934 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This development may impact the company’s capital structure and could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (AU:DMP) stock is a Hold with a A$17.50 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

IVE Group Expands with Domino’s Partnership and Strategic Acquisitions
Nov 3, 2025

IVE Group Limited has entered into a long-term marketing services agreement with Domino’s Pizza Enterprises and acquired Impressu Print Group and Budget Mail Services. The acquisition of Impressu, a Brisbane-based print business previously owned by Domino’s, and the marketing agreement are expected to significantly enhance IVE’s service offerings and revenue. The acquisitions align with IVE’s strategy to expand its national footprint and service capacity, with Impressu contributing an estimated annual revenue of $30 million. The partnership with Domino’s is projected to generate over $80 million in revenue during the initial term, enhancing IVE’s industry positioning and providing growth opportunities in key regions.

The most recent analyst rating on (AU:DMP) stock is a Hold with a A$17.50 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Domino’s Sells Impressu Print Group to IVE Group
Nov 3, 2025

Domino’s Pizza Enterprises Limited has announced the sale of its Impressu Print Group to IVE Group for approximately $13.5 million. This strategic move is part of Domino’s effort to streamline its operations and focus on its core business, while maintaining access to Impressu’s services through a long-term agreement with IVE Group. The transaction is not expected to significantly impact the company’s financial outlook for FY26.

The most recent analyst rating on (AU:DMP) stock is a Hold with a A$17.50 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Citigroup Reduces Stake in Domino’s Pizza Enterprises
Oct 30, 2025

Citigroup Global Markets Australia Pty Limited has ceased to be a substantial holder in Domino’s Pizza Enterprises Limited as of October 28, 2025. This change reflects a decrease in Citigroup’s relevant interest in Domino’s shares, which may impact the company’s shareholder composition and influence in the market.

The most recent analyst rating on (AU:DMP) stock is a Hold with a A$17.50 price target. To see the full list of analyst forecasts on Domino’s Pizza Enterprises Limited stock, see the AU:DMP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 14, 2025