Domino's Pizza Enterprises Slumps Amid Slowing Sales and Dividend Cut

Domino's Pizza Enterprises reported a loss of A$3.7mil for FY22, a significant decline from a profit of A$96mil in the previous year. Same-store sales fell 0.9% in the first seven weeks of FY23, after a 0.2% decline in the previous reporting year. The company reduced its final dividend payment and plans to simplify operations and lower prices to improve competitiveness in the food-delivery market.

Domino's Pizza Enterprises, the largest master franchise operator outside the United States, reported a loss of A$3.7 million for the financial year ended June 29, 2022. This represents a significant decline from the previous year's profit of A$96 million. The company's stock dropped by 20% in Sydney trading, cutting its market value to A$1.46 billion [1].

The loss was driven by a decline in same-store sales of 0.9% in the first seven weeks of the current financial year, which missed the growth expectations of 3.1% for the first six months. This underperformance was particularly notable in Japan and France, where the company has been significantly impacted by weak performance and store closures [1].

Domino's Pizza Enterprises operates 773 stores in Japan and 435 outlets in France, which have been hit hard by ongoing weak performance and store closures. Additionally, waning post-pandemic demand and rising input costs in Japan further squeezed the company's profit in one of its biggest markets [1].

In response to these challenges, Domino's Pizza Enterprises has announced a series of cost-cutting measures and operational simplifications to improve profitability. The company will reduce reliance on food coupons and shift away from higher prices to lower prices and fewer tokens to make menu prices more transparent and increase profitability for franchisees [2].

The company's new Executive Chair, 83-year-old billionaire Jack Cowin, stated, "We’re moving heaven and earth on the cost side of the business. This isn’t talk." Domino's Pizza Enterprises has more than 3,500 stores globally, from Australia to Europe [2].

References:
[1] https://www.marketscreener.com/news/australia-s-domino-s-pizza-swings-to-annual-loss-shares-fall-ce7c50d9d18ff727
[2] https://www.bloomberg.com/news/articles/2025-08-27/domino-s-pizza-enterprises-drops-as-revenue-decline-accelerates