Domino's Pizza Enterprises Limited (AU:DMP)
ASX:DMP
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Domino's Pizza Enterprises Limited
(Sydney:DMP)
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Rating:59Neutral
Price Target:
AU$18.00
▼(-19.46% Downside)
Action:ReiteratedDate:03/26/26
The score is held back primarily by weaker financial performance (loss-making period, pressured cash flow, and high leverage) and bearish technicals (below key moving averages with negative MACD). More supportive valuation and a steadier earnings-call outlook (guidance reaffirmed, cost savings and deleveraging progress) partially offset these risks.
Positive Factors
Improved free cash flow
Material H1 free cash flow improvement shows the business can convert operations into internal funding. That stronger cash generation funds debt reduction, dividends and discipline on capex, supporting sustainable execution of a returns-led reset over the medium term.
Negative Factors
Profitability and cash conversion weakness
A negative net income and steep free cash flow decline indicate persistent profitability and cash-conversion issues. These structural earnings shortfalls constrain reinvestment, slow franchise rollouts and leave the business more reliant on ongoing cost programs to restore sustainable margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow
Material H1 free cash flow improvement shows the business can convert operations into internal funding. That stronger cash generation funds debt reduction, dividends and discipline on capex, supporting sustainable execution of a returns-led reset over the medium term.
Read all positive factors
Domino's Pizza Enterprises Limited (DMP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.68B
Dividend Yield3.58%
Average Volume (3M)858.44K
Price to Earnings (P/E)12.1
Beta (1Y)0.90
Revenue Growth-3.09%
EPS Growth-104.37%
CountryAU
Employees88,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.64
Shares Outstanding94,605,660
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$20.01Price Target Upside-10.46% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)1.26
Revenue Forecast (FY)AU$2.17B
Domino's Pizza Enterprises Limited Business Overview & Revenue Model
Company Description
Domino'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 ...
How the Company Makes Money
DMP makes money primarily through a combination of store sales from company-owned outlets and franchise-related income from franchised stores under its master franchise rights. For company-owned stores, revenue is generated from selling food and b...
Domino's Pizza Enterprises Limited Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 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%.
Read all updates
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 Technical Analysis
Neutral
22.35
Price Trends
19.45
Negative
20.71
Negative
18.55
Negative
Market Momentum
-0.57
Negative
48.59
Neutral
85.12
Negative
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 22.35 is above the 20-day moving average (MA) of 17.41, above the 50-day MA of 19.45, and above the 200-day MA of 18.55, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 48.59 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | AU$1.04B | 11.61 | 2.89% | 2.67% | 4.61% | -76.47% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | AU$1.68B | 12.12 | 8.83% | 3.58% | -3.09% | -104.37% | |
57 Neutral | AU$2.12B | 52.00 | 4.82% | 0.56% | 27.40% | ― | |
48 Neutral | AU$61.58M | 11.71 | -10.34% | ― | 10.13% | -353.94% | |
46 Neutral | AU$3.79M | 1.09 | 5.84% | ― | -6.32% | -9.62% |
* Consumer Cyclical Sector Average
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Domino's Pizza Enterprises Limited
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Domino's Pizza Enterprises Limited Corporate Events
Domino’s Pizza Enterprises Seeks ASX Quotation for New Ordinary Shares
Mar 25, 2026
Domino’s Pizza Enterprises has applied for quotation on the ASX of 3,525 new ordinary fully paid shares, dated 25 March 2026. The shares arise from the exercise or conversion of existing options or other convertible securities, indicating a ...
Domino’s updates dividend details and DRP pricing
Mar 23, 2026
Domino’s Pizza Enterprises has updated its previously announced dividend notification for its ordinary fully paid shares, relating to the six-month period ended 28 December 2025. The update, dated 23 March 2026, reflects the inclusion of the...
Domino’s Director Increases Indirect Stake Through On-Market Share Purchase
Mar 8, 2026
Domino’s Pizza Enterprises has reported a change in director John James Cowin’s indirect shareholding, reflecting an on-market purchase by associated entity Corom Pty Ltd. The transaction saw Corom acquire 170,000 ordinary shares at $1...
Domino’s Pizza Enterprises Declares A$0.25 Interim Dividend
Feb 24, 2026
Domino’s Pizza Enterprises has declared an ordinary interim dividend of A$0.25 per fully paid share, relating to the six‑month period ended 28 December 2025. The dividend will trade ex‑dividend on 3 March 2026, with a record date...
Domino’s Activates Discounted DRP for FY26 Interim Dividend
Feb 24, 2026
Domino’s Pizza Enterprises Limited will apply its Dividend Reinvestment Plan to the FY26 interim dividend of 25.0 cents per share, allowing eligible shareholders to receive shares at a 1.0% discount to the volume weighted average price calcu...
Domino’s boosts franchise profitability and cash flow as it resets for sustainable growth
Feb 24, 2026
Domino’s Pizza Enterprises reported half-year FY2026 results showing a modest 1.0% rise in underlying EBIT to $101.5 million, despite a 1.6% decline in network sales and 2.5% fall in same-store sales, as it deliberately reduced blanket disco...
Domino’s Pizza Enterprises Files Half-Year 2025 Market Presentation
Feb 24, 2026
Domino’s Pizza Enterprises has released its market presentation detailing financial results for the half-year ended 28 December 2025, providing investors and analysts with an overview of the company’s recent trading performance. The pr...
Domino’s Swings Back to Profit as Interim Dividend Rises Despite Revenue Dip
Feb 24, 2026
Domino’s Pizza Enterprises reported half-year revenue of $1.10 billion for the period ended 28 December 2025, down 5.5% from the prior corresponding period, but swung from a loss to a profit with $40.9 million in net profit after tax from co...
Domino’s Pizza Enterprises Discloses Final Director Interest as Grant Bourke Exits Board
Feb 24, 2026
Domino’s Pizza Enterprises has announced the cessation of Grant Bourke as a director effective 24 February 2026, lodging a final director’s interest notice with the ASX. The filing details that Bourke directly holds 929,828 ordinary sh...
Domino’s Appoints Judith Swales to Board With No Initial Shareholding
Feb 24, 2026
Domino’s Pizza Enterprises Limited has appointed Judith Swales as a director effective 24 February 2026, expanding the composition of its board. The company disclosed to the ASX that Swales currently holds no relevant interests in DominoR...
Domino’s names McDonald’s veteran Andrew Gregory as new global CEO
Feb 10, 2026
Domino’s Pizza Enterprises has appointed Andrew Gregory as its new Group Chief Executive Officer and Managing Director, with his start date expected no later than 5 August 2026. Gregory, a veteran of more than 30 years in the quick service r...
Domino’s Issues 394,414 Unquoted Options Under Employee Incentive Scheme
Feb 10, 2026
Domino’s Pizza Enterprises has notified the market of the issue of 394,414 unquoted options under its employee incentive scheme. The options, which carry various exercise prices and expiry dates and are not intended to be quoted on the ASX, ...
Domino’s Tightens Post-AGM Trading Window in Securities Dealing Policy Update
Feb 4, 2026
Domino’s Pizza Enterprises Limited has updated its Securities Dealing Policy, primarily by shortening the post-annual general meeting trading window for dealing in the company’s securities from six weeks to three weeks, while retaining...
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 ...
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 m...
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 executiv...
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.