Australian Domino's operator rises 14% as investors shrug off impairment charge

Domino's Pizza Enterprises

30/07/2026 04:26

July 30 (Reuters) - Shares of Australia's Domino's Pizza Enterprises DMP.AX surged as much as 14.1% on Thursday as investors looked past an impairment charge of A$259 million ($180.29 million) and focused on the company's reaffirmed 2026 profit outlook.
The stock climbed to A$20.50, its highest level since February 27, and was on track for its best trading session since October 28, 2025.
The largest master franchise of the U.S.-based Domino's Pizza DPZ.O said after the bell on Wednesday that it expects to record A$259 million in impairment charges in 2026.
The Australian company expects A$116.2 million of the charges to stem from a reassessment of its French and Taiwanese operations, citing weak trading in France and slower-than-expected growth in Taiwan.
It also expects to book A$142.8 million in additional write-downs related to IT assets, underperforming stores, inventory, franchisee loans and other balance-sheet items.
The firm also booked about A$142.8 million in further write-downs across IT assets, underperforming stores, inventory, franchisee loans and other balance-sheet items.
Domino's reiterated its 2026 underlying net profit after tax guidance of A$118 million to A$122 million.
Analysts at Citi said the earnings outlook was broadly in line with Visible Alpha's consensus expectations and highlighted improving franchisee profitability, particularly in Western Australia where Domino's new pricing and operating model has been in place the longest.
Australian restaurant operators have been grappling with rising input costs and menu-price increases. 
Last month, Citi said four of the five major restaurant chains it tracks raised prices in April and May, with Domino's implementing the largest hikes, raising concerns about demand from value-conscious consumers.


     ($1 = 1.4366 Australian dollars)

 (Reporting by Rajasik  Mukherjee; Editing by Sherry Jacob-Phillips)
 ((Rajasik.Mukherjee@thomsonreuters.com;))