Australian Domino's operator soars; Citi flags improving franchisee profitability

Domino's Pizza Enterprises

30/07/2026 02:18

Updates
** Shares of Australia's Domino's Pizza Enterprises DMP.AX rise as much as 14.14% to A$20.500, logging their best trading session since October 28, 2025
** Stock hits highest since February 27
** Analysts at Citi say key positives from DMP's update include FY26 underlying NPAT outlook of A$118 million -A$122 million ($82.14 million to $84.92 million), broadly in line with Visible Alpha consensus of A$118.1 million
** Brokerage says franchisee profitability is improving, particularly in Western Australia, where the group's new pricing and operating model has been in place the longest
** Notes DMP flagged A$259 mln in write-downs, including impairments in France and Taiwan, implying the outlook has deteriorated for about 17% of Domino's stores
   ** Citi adds impairments and store closures could be viewed as "clearing the decks" ahead of new CEO
   ** Remains "neutral" on DMP, saying valuation likely to remain subdued 
   ** "Think management is doing a formidable job restructuring the business and improving franchisee profitability" - Citi
   ** DMP shares down over 6% YTD





($1 = 1.4366 Australian dollars)

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))