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Domino's Pizza Enterprises Limited
(Sydney:DMP)
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Rating:59Neutral
Price Target:
AU$20.50
▲(23.49% Upside)
Action:Reiterated
Date:04/29/26
The score is held back mainly by weaker financial performance (net loss, leverage, and weaker free cash flow trend) and bearish technicals (below key moving averages with negative MACD). These are partly offset by reasonable valuation (P/E ~12 and ~3.1% yield) and an earnings call showing improving cash flow/deleveraging with reiterated guidance, though sales trends remain negative.
Positive Factors
Franchisee profitability
Improving franchisee EBITDA and rising ANZ store profitability strengthen the underlying franchising model, making franchised rollouts more capital-efficient. Better unit economics support selective store expansion, higher royalty streams and reduce DPE's capital intensity over the medium term.
Negative Factors
Same-store sales weakness
Sustained negative same-store sales signal weakened demand after the pricing and promotion reset. Persistently lower comps reduce royalty bases, pressure store-level profitability and slow network sales growth, limiting organic scale benefits and constraining medium-term margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchisee profitability
Improving franchisee EBITDA and rising ANZ store profitability strengthen the underlying franchising model, making franchised rollouts more capital-efficient. Better unit economics support selective store expansion, higher royalty streams and reduce DPE's capital intensity over the medium term.
Read all positive factors
Domino's Pizza Enterprises Limited (DMP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.76B
Dividend Yield2.47%
Average Volume (3M)858.44K
Price to Earnings (P/E)29.5
Beta (1Y)1.01
Revenue Growth-1.35%
EPS Growth258.94%
CountryAU
Employees537
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.63
Shares Outstanding94,746,864
10 Day Avg. Volume663,359
30 Day Avg. Volume858,436
Financial Highlights & Ratios
PEG Ratio4.64
Price to Book (P/B)2.69
Price to Sales (P/S)0.78
P/FCF Ratio19.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$19.19Price Target Upside15.60% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)1.31
Revenue Forecast (FY)AU$2.04B
Domino's Pizza Enterprises Limited Business Overview & Revenue Model
Company Description
Domino's Pizza Enterprises Limited operates retail food outlets. It holds franchise rights for the Domino's brand in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Cambodia, Germany, Luxembourg, Taiwan, Denmark, Malaysia, and Sin...
How the Company Makes Money
DMP generates revenue through a mix of company-owned store sales, franchising income, and supply-chain-related earnings tied to its Domino’s store network. (1) Retail sales from company-owned stores: When DMP operates a store directly, it records ...
Domino's Pizza Enterprises Limited Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call describes a deliberate, returns-led reset: solid H1 financial outcomes (modest EBIT and NPAT growth), materially improved free cash flow, significant debt reduction, delivered cost savings, and rising franchisee profitability. These positives are balanced against meaningful short-term sales declines driven by the strategic removal of broad discounting (notably ANZ/WA), market-specific underperformance in Japan and France, and some near-term margin/warehouse impacts. Management emphasized that actions are intentional, funded internally, and should drive sustainable, profitable growth; they reaffirmed guidance and signaled management and governance improvements to execute the strategy.Positive Updates
Profitability Growth (EBIT & NPAT)
First half EBIT of $101.5 million, up 1.0% versus the prior corresponding period; Net profit after tax (NPAT) of $60.1 million, up 2.2% year-over-year.
Negative Updates
Decline in Same Store Sales and Network Sales
Network sales were $2.04 billion with same store sales down 2.5% in H1; year-to-date sales including the first trading week of H2 were down 3.6% versus prior year; ANZ same store sales declined 4.7%.
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Q2-2026 Updates
Positive
Negative
Profitability Growth (EBIT & NPAT)
First half EBIT of $101.5 million, up 1.0% versus the prior corresponding period; Net profit after tax (NPAT) of $60.1 million, up 2.2% year-over-year.
Read all positive updates
Company Guidance
Management reiterated FY26 guidance is consistent with the AGM and market expectations and said they are targeting to beat prior consensus (c. $118.7m NPAT); H1 delivered EBIT $101.5m (+1% PCP), NPAT $60.1m (+2.2%), network sales $2.04bn with group same‑store sales down 2.5% (ANZ -4.7%, Europe +1.3%), sales YTD (incl first week H2) -3.6%, and H1 free cash flow $70.6m (up $40.6m vs prior). They’ve actioned $55m of cost savings (tracking $60–$70m pa, with $20–$30m flowing in FY26 and ~33% to DPE), expect a further $15–$25m pa from Phase 2 largely to DPE, reduced total debt by $196.1m (net debt -$114.2m), net leverage 2.21x (from 2.57x) with average debt tenor 4.5 years and interest cover ~19.8x, raised an interim unfranked dividend of $0.25 (+16.3%), and plan selective 20–40 new stores over 12–18 months once average franchisee store EBITDA (currently $103k, +4.5% y/y) approaches the ~$130k target that supports material expansion.Domino's Pizza Enterprises Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.23B | 2.30B | 2.37B | 2.34B | 2.27B | 2.19B |
| Gross Profit | 606.06M | 1.30B | 731.50M | 587.23M | 634.83M | 626.62M |
| EBITDA | 288.20M | 179.74M | 324.55M | 279.38M | 380.55M | 421.79M |
| Net Income | 59.38M | -3.70M | 95.96M | 40.57M | 158.72M | 184.01M |
Balance Sheet | ||||||
| Total Assets | 2.41B | 2.67B | 2.59B | 2.88B | 2.43B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 71.56M | 153.50M | 87.65M | 159.89M | 76.88M | 174.69M |
| Total Debt | 1.66B | 1.50B | 1.44B | 1.74B | 1.41B | 1.27B |
| Total Liabilities | 1.73B | 2.01B | 1.98B | 2.36B | 2.01B | 1.96B |
| Stockholders Equity | 682.46M | 663.09M | 609.55M | 520.52M | 421.96M | 395.14M |
Cash Flow | ||||||
| Free Cash Flow | 147.40M | 91.39M | 146.78M | 103.13M | -1.95M | 230.51M |
| Operating Cash Flow | 173.02M | 167.18M | 236.97M | 260.79M | 190.12M | 373.25M |
| Investing Cash Flow | -11.43M | -54.39M | -66.01M | -487.94M | -233.28M | -97.46M |
| Financing Cash Flow | -209.89M | -54.65M | -239.09M | 314.12M | -49.95M | -329.90M |
Domino's Pizza Enterprises Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | AU$1.76B | 29.48 | 8.83% | 2.76% | -1.35% | 258.94% | |
57 Neutral | AU$970.68M | 22.19 | 10.53% | 3.64% | 4.81% | 397.47% | |
57 Neutral | AU$2.48B | 146.25 | 4.82% | 0.92% | 25.22% | ― | |
50 Neutral | AU$52.82M | -2.54 | -10.34% | ― | -0.47% | -326.66% | |
46 Neutral | AU$3.24M | -2.86 | 5.84% | ― | -8.96% | 69.23% |
* Consumer Cyclical Sector Average
AU:DMP
Domino's Pizza Enterprises Limited
19.95
1.65
9.00%
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8.14
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0.96
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0.01
0.00
0.00%
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Domino's Pizza Enterprises Limited Corporate Events
JPMorgan Ceases to Be Substantial Holder in Domino’s Pizza Enterprises
Jul 29, 2026
JPMorgan Chase Co. and its affiliates have notified Domino’s Pizza Enterprises Limited that they have ceased to be a substantial holder in the company as of 27 July 2026. The change reflects a combination of securities lending activity and ...
Domino’s boosts cash flow, cuts debt as it absorbs $259m in write-downs
Jul 29, 2026
Domino’s Pizza Enterprises Limited has reaffirmed its FY26 earnings guidance, with preliminary unaudited underlying NPAT expected between $118 million and $122 million and free cash flow around $164 million, up about $116.6 million on FY25. ...
Domino’s faces uncertainty after Federal Court ruling in wage class action
Jul 23, 2026
Domino’s Pizza Enterprises has been found by the Federal Court of Australia to have engaged in misleading and deceptive conduct over historical representations about the coverage of its certified enterprise agreements between 2013 and 2018. ...
Domino’s Issues New Employee Options Under Incentive Scheme
Jul 2, 2026
Domino’s Pizza Enterprises Limited has issued 5,591 unquoted options under its employee incentive scheme, with various expiry dates and exercise prices. The options, recorded against ASX code DMPAK, were issued on 30 June 2026 and are not in...
Domino’s Pizza Enterprises Reports Lapse of 227,750 Options
Jul 2, 2026
Domino’s Pizza Enterprises Limited operates in the quick-service restaurant industry, focusing on pizza delivery and takeaway. Listed on the ASX under the ticker DMP, the company manages a network of Domino’s-branded stores that serve ...
Domino’s Extends France and Belgium Franchise Deals Ahead of Renewal
Jun 30, 2026
Domino’s Pizza Enterprises has confirmed that its Master Franchise Agreements for France and Belgium, originally due to expire on 30 June 2026, are in the process of renewal. The company reports that negotiations are well advanced with broad...
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.