Australian Domino's operator flags $180 mln impairments; retains fiscal 2026 profit outlook (updated)

Domino's Pizza Enterprises

29/07/2026 10:01

Recasts throughout, adds background in paragraphs 4-5, further details in paragraph 6
Co flags A$116.2 mln in impairments from France, Taiwan
Expects to close up to 60 stores in Europe, ANZ, Asia
Appoints insider Uschi Schreiber as deputy chair
July 29 (Reuters) - Australia's Domino's Pizza Enterprises DMP.AX said on Wednesday it will book A$259 million ($179.85 million) in impairment charges in fiscal 2026, mainly tied to reassessment of French and Taiwanese businesses, through mostly accounting writedowns rather than cash outflows.
It comes at a time when Australian quick-service restaurant operators are grappling with rising input costs, forcing them to hike menu prices.
The largest master franchise of the U.S.-based Domino's Pizza DPZ.O expects a total of A$116.2 million in impairments, citing weak French trading and slower-than-expected Taiwanese growth.
The Australian company also booked about A$142.8 million in further write-downs across IT assets, underperforming stores, inventory, franchisee loans and other balance-sheet items.
Citi flagged in June that four of five major chains it tracks raised menu prices in April-May, with Domino's hiking the most. The broker warned the hikes could test demand elasticity, particularly among value-focused consumers.
Among ASX-listed food and retail peers, Domino's has slid 14.5% year-to-date, while fellow fast-food franchisor Collins Foods CKF.AX declined about 22%. Those are in stark contrast to fast-casual newcomer Guzman y Gomez's GYG.AX 13.6% gain, mainly tied to U.S. expansion plans that were later scrapped.
     
     
Domino's is expected to close up to 60 stores - 25 in Europe, 29 in ANZ, and 6 in Asia - that are expected to generate around A$10.9 million annualised EBIT benefit, the firm said, adding that it anticipates a broader roll-out across Australia in fiscal 2027.
Meanwhile, same-store sales for the firm were down 4.1% in fiscal 2026, reflecting the impact of adverse weather conditions across Europe at the start of the year.
The 12-country Domino's operator reiterated fiscal 2026 underlying net profit after tax guidance of A$118 million to A$122 million.
Domino's Pizza also appointed non-executive director Uschi Schreiber as deputy chair. Former McDonald's MCD.N executive Andrew Gregory will take over as Australia's Domino's Pizza's CEO and managing director on August 5.

(Reporting by Shivangi Lahiri and Kumar Tanishk in Bengaluru; Editing by Nivedita Bhattacharjee, Janane Venkatraman and Harikrishnan Nair)
((Shivangi.Lahiri@thomsonreuters.com;))