Domino’s Pizza Enterprise profit inches up after axing discounts

Same-store sales dip following pricing reset in some of its markets.

Domino’s Pizza Enterprise reported an underlying net profit after tax of $60.1m in half year ending 28 December, a 2.2% increase from the same period last year, after it announced it would reduce discount-led marketing strategies after reporting a loss of $3.7m for FY2025.

“We reduced reliance on discounting during the half. Volumes moderated, as expected, but unit economics improved. That was a conscious trade-off to build a stronger system,” Jack Cowin, executive chairman at DPE, said in a statement.

Revenue fell to $1.1b in H1 2026, compared to $1.16b a year before. The decrease was primarily due to a dip of 2.5% in same-store sales (SSS) and a reduction in network sales of 1.6%.

Operating cash flow was $101.2m, up from $95.4mn in the prior corresponding period. Cash generation benefited from a favourable $38.7m tax inflow, partly offset by store closure and employee termination costs as well as higher working capital movements.

In Australia, revenue decreased by 8.3% to $362.7m, and Underlying earnings before interest and tax (EBIT) decreased 9.3% to $61.5m, whilst SSS declined 4.7% in the half. 

This was largely due to a planned reset in Australia and New Zealand to improve franchisees’ profitability and simplify pricing, cutting back on nationwide discounts and focusing instead on higher-margin orders and more sustainable returns, resulting in moderated volumes and reduced earnings.

DPE, however, said that despite lower SSS, store-level profitability improved during the period, supported by higher average ticket and cost initiatives delivered across the system.

Revenue in Asia decreased 14.7% to $342.8m, whilst underlying EBIT increased 8.5% to $18.4m. SSS declined 6.1% in the half. These results largely stem from several strategic restaurant closures in Japan.

Meanwhile, revenues in Europe saw 7.7% increase to $396.3m, with underlying EBIT increasing 23.4% to $39.8m. Same store sales increased 1.3% in the half. Strong performance from Benelux and Germany offset the soft performance of the group’s French market.

The group said it iwl will selectively invest to support sustainable SSS growth and disciplined network expansion. The group recently announced new franchise opportunities and plans to strengthen its presence in Singapore and Malaysia.

“We anticipate that 2026 Full Year results will be in line with guidance provided at the annual general meeting, and consistent with market expectations at that time,” Cowin said.