Domino’s shares sink on 1H results, lower dividend
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More news: Domino’s Pizza Enterprises saw its share tumble in morning trade after the pizza chain swung to a first-half statutory profit but slashed its interim dividend.
Shares were down 13.4% to $18.76 at 11:30am AEDT, taking 12-month losses to 35%.
Domino’s swings to first-half profit, reaffirms FY26 guidance
The news: Domino’s Pizza swung to a first-half profit of $40.9 million, up from a $22.2 million loss in the previous corresponding period, after franchise partner profitability rose to its highest level in three years.
The numbers: Underlying net profit after tax rose 2.2% year on year to $60.1 million. Revenue fell 5.5% year on year to $1.1 billion.
The company reaffirmed its full-year guidance and declared an interim dividend of 25 cents per share, down from 55.5 cents per share a year earlier.
The context: Domino’s said the group deliberately reduced blanket discounting during the half to improve contribution from orders and strengthen store-level economics. This resulted in a short-term moderation in volumes, it said. while improving unit economics for franchisees.
The company noted improved performance in select European markets was offset by softer trading in Australia, Japan and France.
The source: ASX
