Domino’s same-store sales dropped 4.1% in the 2026 financial year after the company raised prices and stripped back deals to focus on boosting margins. Franchisee profitability across the group rose 11.3% over the same period, highlighting the trade-off Domino’s is willing to make between volume and earnings.
Sales fell 4.7% in Australia and New Zealand, 2.2% in Europe and 6.7% in Asia, underlining how widespread the slowdown in orders has been. In Western Australia, however, average store earnings were 30% higher in the five months to May, even with fewer orders going through the tills.
Domino’s plans to roll out that Western Australia model as a template for the rest of its Australian network in FY27.
The pizza group has pulled back sharply from promotions and discount offers that once targeted value-conscious diners, a move that has frustrated its US-based parent company. The parent separately reported that annual sales across its combined regions - Australasia, Asia and Europe - slumped in 2026 as the shift away from heavy discounting hit volumes.
For the ASX-listed business, the biggest hit to full-year profit comes from its struggling French operations, where $70.5 million in goodwill has been written down to reflect ongoing underperformance. In Taiwan, management booked a partial writedown of $45.7 million against a franchise bought in 2021 for $79 million, acknowledging weaker than expected returns.
The company also expects tens of millions of dollars in impairments tied to the permanent closure of up to 60 outlets, including 29 sites in Australia and New Zealand.
Executives frame the weaker group sales and hefty impairments as part of a deliberate shift toward “profitable and sustainable” sales growth, rather than chasing every possible order at thin margins. Same-store sales declines of 4.7% in Australia and New Zealand, 2.2% in Europe and 6.7% in Asia all reflect that pivot to higher average tickets and fewer deep discounts.
The company argues that long-term franchisee earnings now sit above headline sales growth on its priority list, using Western Australia’s 30% earnings lift as proof the model can work. That approach is set to reshape Domino’s network, with underperforming stores shuttered, promotional calendars trimmed and franchisees pushed toward healthier unit economics instead of raw volume.
