Domino’s Pizza Enterprises is moving away from broad discounting as it works to rebuild customer orders and improve profitability.
Executive chairman Jack Cowin said the group had deliberately prioritised franchisee returns over short-term sales growth over the past year.
“We made a conscious trade-off: Fewer low-margin orders in the short term to build a stronger, more sustainable system,” he said.
“The leadership team is now in place, and the business is simpler.”
For FY26 the company’s network sales fell 6.8 per cent to $3.87 billion, including the impact of store closures, while same-store sales declined 4.1 per cent. Underlying EBIT (earnings before interest and taxes) increased 1 per cent to $200.1 million.
Average franchise partner profitability increased 11.3 per cent, while free cash flow rose to $164.1 million.
Domino’s also recorded $67 million in annualised cost savings, with $35.3 million realised during FY26.
Regionally, underlying EBIT fell 5.9 per cent in Australia and New Zealand as same-store sales declined 4.7 per cent, reflecting pricing changes and lower discounting to improve franchisee profitability.
In Asia, underlying EBIT rose 19.7 per cent despite a 6.7 per cent drop in same-store sales, driven by the closure of underperforming stores, particularly in Japan, and tighter cost controls.
Europe reported a 2.6 per cent increase in underlying EBIT as same-store sales slipped 2.2 per cent, with stronger performance in the Benelux region offsetting weaker trading in France and Germany.
Global overheads also improved 5.8 per cent due to tighter cost controls and lower discretionary spending.
For the next fiscal year, Domino’s plans to focus on increasing customer frequency through clearer pricing, stronger execution, and more relevant offers rather than returning to broad-based discounting.
Group CEO and MD Andrew Gregory added that the group would focus on restoring profitable sales growth while maintaining its focus on franchise partners and capital discipline.
“FY26 has materially strengthened the business,” he said. “The task now is to convert those stronger foundations into profitable order growth.”
