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Domino's Pizza Enterprises Limited (AU:DMP)
ASX:DMP

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

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AU:DMP

Domino's Pizza Enterprises Limited

(Sydney:DMP)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
AU$21.50
▼(-3.80% Downside)
Action:ReiteratedDate:02/27/26
The score is held back primarily by weaker financial fundamentals—net losses, declining free cash flow, and elevated leverage—despite improved gross margin and higher equity. Technical indicators also point to soft near-term momentum, while valuation is mixed with a high P/E partially offset by a ~4% dividend yield.
Positive Factors
Diversified revenue streams
Domino’s master-franchise model generates recurring royalty and franchise fee income while company stores provide retail sales. The added supply-chain revenue from centralized procurement offers a steady margin stream and reduces single-channel dependency, supporting medium-term cash flow resilience.
Improved gross margin and supply-chain leverage
A large swing in gross margin indicates meaningful improvement in cost control and pricing power, likely supported by vertical supply operations. Higher gross margins provide structural room to invest in marketing, technology, or franchise support while helping margins remain resilient amid input cost variability.
Scale and digital ordering platform
Operating as a master franchise across multiple countries and using centralized digital ordering creates network effects: shared marketing, technology scale, and operational best practices. This scale supports consistent unit economics and easier roll-out of product and tech improvements across the estate.
Negative Factors
Net losses / negative profitability
A shift to reported net losses and negative ROE undermines retained earnings and the company’s ability to self-fund growth or weather shocks. Persistent unprofitability can erode franchise economics, limit reinvestment, and pressure franchisor-franchisee relationships over the medium term.
Deteriorating cash generation
A sharp drop in free cash flow and negative cash conversion versus net income signal weaker internal funding. Reduced cash generation constrains capex, franchise support, and debt repayment options, raising the likelihood of external financing or reduced strategic flexibility in the next several quarters.
Elevated leverage
A debt-to-equity ratio above 2x represents material leverage for a consumer-facing franchisor/operator. High leverage increases interest burden, refinancing risk, and covenant exposure, limiting ability to invest and amplifying downside in revenue or cash-flow stress scenarios over the medium term.

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
Financial performance is pressured by a shift to net losses and weaker cash generation (free cash flow down 45.51%). While gross margin improved materially and equity increased, high leverage (debt-to-equity 2.26) and negative profitability metrics (including ROE) weigh on the score.
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.
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue2.23B2.30B2.37B2.34B2.27B2.19B
Gross Profit606.06M1.30B731.50M587.23M634.83M626.62M
EBITDA288.20M179.74M324.55M279.38M380.55M421.79M
Net Income59.38M-3.70M95.96M40.57M158.72M184.01M
Balance Sheet
Total Assets2.41B2.67B2.59B2.88B2.43B2.35B
Cash, Cash Equivalents and Short-Term Investments71.56M153.50M87.65M159.89M76.88M174.69M
Total Debt1.66B1.50B1.44B1.74B1.41B1.27B
Total Liabilities1.73B2.01B1.98B2.36B2.01B1.96B
Stockholders Equity682.46M663.09M609.55M520.52M421.96M395.14M
Cash Flow
Free Cash Flow147.40M91.39M146.78M103.13M-1.95M230.51M
Operating Cash Flow173.02M167.18M236.97M260.79M190.12M373.25M
Investing Cash Flow-11.43M-54.39M-66.01M-487.94M-233.28M-97.46M
Financing Cash Flow-209.89M-54.65M-239.09M314.12M-49.95M-329.90M

Domino's Pizza Enterprises Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.35
Price Trends
50DMA
22.39
Negative
100DMA
20.53
Negative
200DMA
19.32
Positive
Market Momentum
MACD
-0.55
Positive
RSI
39.64
Neutral
STOCH
46.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DMP, the sentiment is Negative. The current price of 22.35 is above the 20-day moving average (MA) of 21.78, below the 50-day MA of 22.39, and above the 200-day MA of 19.32, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 39.64 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$210.51M10.648.86%4.13%11.62%
69
Neutral
AU$1.19B99.702.90%2.67%4.61%-76.47%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
AU$1.92B32.35-0.70%3.58%-3.09%-104.37%
50
Neutral
AU$2.00B110.483.94%0.56%27.40%
48
Neutral
$68.47M-3.34-6.95%10.13%-353.94%
41
Neutral
AU$4.33M-5.00-6.32%-9.62%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DMP
Domino's Pizza Enterprises Limited
20.33
-6.84
-25.19%
AU:CKF
Collins Foods
10.05
1.85
22.56%
AU:RFG
Retail Food Group
1.09
-0.96
-47.07%
AU:OLI
Oliver's Real Food Ltd.
0.01
0.00
0.00%
AU:MTO
Motorcycle Holdings Ltd.
2.85
0.96
50.79%
AU:GYG
Guzman y Gomez Ltd.
19.30
-14.94
-43.63%

Domino's Pizza Enterprises Limited Corporate Events

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 of 4 March and payment scheduled for 30 April, while shareholders must elect into the dividend reinvestment plan by 5 March, setting a clear timetable for income-focused investors.

The announcement confirms the board’s decision to return cash to shareholders for the half‑year period, signalling ongoing capital management and a continued commitment to regular shareholder distributions. The defined key dates provide clarity for market participants and may influence short‑term trading in DMP shares around the ex‑dividend and record dates as investors position for the payout.

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 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 calculated over a 10-trading-day period starting 9 March 2026. The DRP for this interim dividend will not be underwritten, indicating the company is comfortable funding the equity issuance directly without third-party underwriting support.

Shareholders who wish to start, stop or vary their DRP participation for the FY26 interim dividend must lodge their elections by 5:00pm AEST on 5 March 2026, ahead of pricing and payment milestones through March and April. The timetable, culminating in a 30 April 2026 dividend payment and share issue date, provides clarity for income-focused investors and signals Domino’s ongoing use of equity-funded dividends as part of its capital management strategy.

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 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 discounting to improve franchise partner economics. Franchise partner profitability rose 4.5% to its highest level in three years, backed by cost savings, simplified operations and a strategic focus on unit economics over short-term volume growth.

The company generated strong free cash flow that enabled debt reduction and strengthened its balance sheet, supporting disciplined reinvestment and a 16.3% increase in the interim dividend to 25.0 cents per share. Regional performance was mixed, with strong EBIT growth and margin expansion in Europe offset by softer trading in Australia, Japan and France, while a refreshed leadership team, including an incoming Group CEO, is tasked with executing the reset and returning the business to sustainable growth.

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 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 presentation, authorised by the board and lodged with the Australian Securities Exchange, forms the core disclosure of the period’s results and supports ongoing communication with the market.

By formally submitting this half-year update, the company reinforces its adherence to disclosure obligations and maintains transparency around its operational and financial position. The release signals that more detailed figures and analysis are now available to stakeholders, underpinning informed valuation and governance discussions around Domino’s performance.

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 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 continuing operations. Underlying net profit after tax rose 2.2% to $60.1 million, indicating improved profitability despite softer topline sales.

The board declared an interim fully franked dividend of 25.0 cents per share for FY26, up from the prior final dividend of 21.5 cents, and confirmed that the dividend reinvestment plan will apply at a 1.0% discount without underwriting. The company’s net tangible assets per security improved from negative $6.41 to negative $5.53, and management pointed investors to accompanying reports and a media release for further detail on trading performance.

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 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 shares and, jointly with his wife Sandra Eileen Bourke, holds an additional 698,516 ordinary shares, clarifying his equity position for investors and regulators upon his departure from the board.

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 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 Domino’s securities, either directly, indirectly, or through related contracts, indicating a starting position free of equity ties.

This appointment signals a governance update for Domino’s as it refreshes its board structure, a move that may influence future strategic oversight without immediately altering the company’s shareholding profile. The lack of existing security holdings underscores a clear separation between Swales’s board responsibilities and any personal financial interest in the company at the time of appointment.

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 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 restaurant industry, brings extensive global experience from McDonald’s, including senior roles in franchising, development, operations and crisis leadership across Australia, New Zealand, Japan and the U.S.

The appointment follows a comprehensive global search and is designed to bolster Domino’s long-term leadership capacity and strategic execution. Executive Chairman Jack Cowin will oversee a transition period and work closely with Gregory, with the leadership change focused on improving franchisee profitability, strengthening customer value propositions and supporting sustainable growth and shareholder returns across Domino’s global network.

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 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, underline the company’s ongoing use of equity-based compensation to align staff incentives with long-term shareholder value.

This latest grant of options may help the group retain and motivate key employees in a competitive quick-service restaurant sector. While the move slightly increases potential future equity dilution, it reinforces Domino’s strategy of tying employee rewards to the company’s operational and share price performance over time.

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 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 all other existing trading windows. The revision is framed as part of Domino’s broader corporate governance framework aimed at strengthening compliance with insider trading laws, reinforcing market integrity, and supporting investor confidence by tightening the conditions under which directors and other relevant parties can trade in the company’s securities.

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 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.

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: Feb 27, 2026