--
- Network Sales: $4.15 billion, -$36.8 million (-0.9%) including strategic store closures
- Same Store Sales: -0.2% (vs +1.5% in the prior corresponding period)
- Franchisee EBITDA: $94.7k (rolling 12 months) in line with prior year
- EBIT: $198.1 million (-4.6% vs prior corresponding period)
- Dividend: 21.5 cents per share (unfranked); DRP retained with underwriting removed for FY25
Domino’s Pizza Enterprises Limited (ASX: DMP) today released its FY25 Full Year results, and confirmed its strategic priorities to improve profitability, simplify operations, and drive long-term value creation across the business.
- Solid performances in Australia and BENELUX, with encouraging signs of improvement in Germany and Southeast Asia, offset by continued challenges in France and Japan.
- Progress has been made in identifying and delivering cost savings, with initiatives now underway to reinvest in marketing and franchisee support while further simplifying the business.
- The Company remains focused on lifting unit economics through same store sales growth and disciplined store support.
Executive Chair Jack Cowin said the business is concentrating on the fundamentals – quality food, strong service, compelling value – while making the structural changes necessary to compete and grow in a changing environment.
“We’re taking action to make Domino’s a leaner, more efficient business. That means reducing costs – and using those savings to support our franchise partners and invest in marketing that drives sales. We will share the rewards when we get it right – with customers, with partners, and with shareholders.”
“Customer expectations haven’t changed – they still want great food delivered fast, at a fair price. That’s where we’re focused. Product. Service. Image. Value,” Mr Cowin said.
Operational Reset: Supporting Growth through Efficiency and Capital Discipline
The Company is progressing a Group-wide cost efficiency program. While the final quantum of savings will be confirmed at a later date, benefits are expected to be reinvested to:
- Enhance franchise partner economics through lower input costs and operational support;
- Increase working media investment to drive top-line momentum;
- Improve digital and data capabilities to lift conversion and repeat orders.
Domino’s also confirmed an updated capital management approach
- Prioritising deleveraging and optimising growth, to ensure retained earnings are directed toward paying down debt and reinvestment during this phase of operational reset. The Board believes a lower payout is prudent in the current context and aligned with long-term shareholder value creation.
- Maintaining the Dividend Reinvestment Plan (DRP),but removing the underwriting feature. This preserves an avenue for investors who wish to compound their investment at a time when the Company’s share price does not fully reflect its long-term potential.
- Targeting net debt to EBITDA of below 2.0x before any reconsideration of payout increases or underwriting. This reflects the Company’s commitment to rebuilding balance sheet strength and maintaining strategic flexibility.
FY25 Market Overview
Australia and New Zealand (ANZ): The ANZ business continued to deliver strong results achieving record profitability while simultaneously delivering the highest franchisee EBITDA in three years. After a first-half focus on capturing more occasions, the business has returned its attention to core pizza and the value-led sharing occasion. A structured menu reduction program is now underway, aimed at improving product quality scores, as measured by customers, and simplifying store operations – both to improve franchisee profitability. New Zealand is responding to the challenges of a softer macroeconomic environment affecting QSR demand.
Asia: An improved performance in Taiwan and Malaysia/Singapore/Cambodia, was offset by a decline in Japan earnings, with lower same store sales as management continues to focus on improving the customer value proposition. The Japan store closures announced in the 2nd half, have been completed and will assist in stabilising the profitability of both the franchised and corporate store network. Domino’s Japan is working to reduce a reliance on discount-focused marketing, instead building everyday value for customers in a low-frequency market, coupled with increased working media during traditionally high-volume special occasions such as Christmas. “In Asia, we’ve taken tough but necessary decisions to close underperforming stores and refocus on frequency and value. The work is underway to rebuild momentum.”
Europe: Performance in Europe was mixed, with strong results in the Benelux and encouraging progress in Germany, partly offset by ongoing challenges in France. BENELUX delivered positive same store sales growth, supported by the rollout of the Honour the Craving brand platform, new product innovation, and a shift to digital-led media. In Germany, national value campaigns are helping lift customer acquisition and brand awareness in a soft consumer environment. In France, new leadership is now in place with a clear mandate to simplify and rebuild. Plans are underway to reduce menu complexity, focus on value messaging and expand premium offerings, to build a more sustainable growth model.
Looking Ahead Domino’s intends to reinvest the benefits of ongoing savings initiatives into additional working media and lower costs to drive improved unit economics and franchise returns.
While new store openings have remained subdued in recent periods – reflecting franchisee profitability levels below long-term plans – the Company expects this trend to improve at unit economics improve – a key focus of management.
New store openings will only be pursued where new stores are expected to be sustainably profitable and deliver a meaningful return on investment to franchise partners.
“We have work to do. But we know what matters. A better experience for our customers, a stronger return for our franchisees and value creation for our shareholders,” Mr Cowin said. “That is the future we’re building.”
Authorised for release by the Domino's Pizza Enterprises Ltd. Board of Directors
Further information: Nathan Scholz, Chief Communications and Investor Relations Officer: +61-419-243-517 / investor.relations@dominos.com.au
