Domino’s Pizza Enterprises Limited reported a statutory net loss for FY25, closing 312 underperforming stores and navigating significant leadership changes while declaring an unfranked final dividend.
- Statutory net loss of $3.7 million for FY25
- Revenue declined 3.1% to $2.3 billion
- Closure of 312 underperforming stores, including 233 in Japan
- Leadership transitions with CEO retirements and new Executive Chair appointment
- Unfranked final dividend of 21.5 cents per share declared
Financial Performance and Operational Challenges
Domino’s Pizza Enterprises Limited (DPE) has reported a challenging financial year ending 29 June 2025, posting a statutory net loss after tax of $3.7 million, a stark contrast to the prior year’s profit. Revenue from ordinary activities fell by 3.1% to $2.3 billion, while underlying earnings before interest and tax (EBIT) declined 4.6% to $198.1 million. These results reflect a period of operational recalibration amid a competitive and inflationary environment.
The company undertook a significant network rationalisation, closing 312 underperforming stores globally, with the majority; 233 stores; shuttered in Japan. This move was part of a broader strategy to streamline operations and improve franchisee profitability, which has been under pressure in several markets, notably France, where ongoing legal disputes and softer sales weighed heavily on performance.
Leadership Transitions and Strategic Reset
The year also saw notable leadership changes. Don Meij, the long-serving Group CEO and a co-founder of DPE, retired after more than 30 years with the company. His successor, Mark van Dyck, who took the helm in November 2024, resigned in July 2025, prompting Executive Chairman Jack Cowin to step in as Executive Chair on an interim basis. The Board has established an Independent Board Committee to ensure governance and oversight during this transition period.
These leadership shifts coincide with a strategic reset focused on cost reduction, operational discipline, and renewed investment in marketing and menu innovation. The company emphasized its commitment to supporting franchise partners through pricing improvements, menu streamlining, and enhanced digital engagement to drive sales growth and profitability.
Dividend and Capital Management
Despite the loss, the Board declared an unfranked final dividend of 21.5 cents per share, payable on 3 October 2025, signaling confidence in the company’s cash flow and capital position. The company continues to manage its capital prudently, maintaining a net leverage ratio below 2.0x and focusing on deleveraging while funding strategic growth initiatives.
Legal and Regulatory Landscape
DPE faces ongoing legal proceedings, including a significant class action in Australia and litigation in France related to competitive practices. While the company denies liability and has not recognised provisions for these matters, the outcomes remain uncertain and could have material impacts in the future.
On the sustainability front, DPE is preparing to meet new reporting obligations under Australian and European standards, reflecting its commitment to environmental, social, and governance (ESG) principles as part of its long-term strategy.
Outlook
With a clear focus on execution, Domino’s aims to rebuild momentum in FY26 by improving franchisee economics, optimizing costs, and enhancing customer experiences. The company’s leadership transition and strategic initiatives will be closely watched by investors seeking signs of a turnaround in performance and shareholder value creation.
Bottom Line?
Domino’s FY25 results mark a pivotal moment as the company restructures and repositions for growth amid leadership changes and market challenges.
Questions in the middle?
- Who will be appointed as the new Group CEO to lead Domino’s next phase?
- How will ongoing legal proceedings impact Domino’s financial outlook?
- Can franchisee profitability improvements translate into sustained earnings growth?