Citi says Australian Domino's operator's FY26 outlook meets expectations despite write-downs

Domino's Pizza Enterprises

29/07/2026 21:21

** Analysts at Citi say key positives from Australia's Domino's Pizza Enterprises' DMP.AX update include FY26 underlying NPAT outlook of A$118 million($82.08 million)-A$122 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 latest impairments and store closures could be viewed as "clearing the decks" ahead of the new CEO starting on Aug. 5
   ** Remains "neutral" on DMP, saying valuation is likely to remain subdued versus history
   ** "Think management is doing a formidable job restructuring the business and improving franchisee profitability" - Citi
   ** DMP shares nearly 15% so far this year


($1 = 1.4376 Australian dollars)

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