Domino's Pizza Group H1 2026 Earnings Report

Domino's Pizza Group EPS Results

• Actual EPS: GBX 8
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Domino's Pizza Group Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Domino's Pizza Group Announcement Details

• Quarter: H1 2026
• Date: 8/4/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, August 4, 2026
• Conference Call Time: 2:00AM ET

Domino’s Pizza is the UK’s leading pizza brand and a major player in the Republic of Ireland. We are part of the global Domino’s system, the biggest pizza delivery operator in the world. We hold the exclusive master franchise rights in the UK & Ireland under a long term agreement with Domino’s Pizza International Franchising Inc., the international arm of Domino’s Pizza Inc, which owns the Domino’s brand. Our core business is the UK & Ireland, where we have a clear number one market share. We operate a world-class supply chain, making fresh dough and acting as a scale and expert wholesaler of other food and non-food supplies to our franchisees. As the master franchisor, we are responsible for national campaigns and marketing activities to drive sales and build the brand. We develop and run the technology ordering platforms which support both the website and the app. The majority of our almost 1400-strong store estate is run by our franchisee partners, although we directly operate some corporate stores in the Republic of Ireland and Northern Ireland.

Domino's Pizza Group H1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: First-half performance improved: sales and orders grew, EBITDA increased 3.6%, EPS rose about 5%, and free cash flow climbed to more than £50 million.
• Positive Sentiment: Management remains confident in meeting full-year expectations and proposed an interim dividend of 3.7 pence per share, approximately 3% higher than last year.
• Positive Sentiment: CHICK ’N’ DIP is showing encouraging early traction, with high customer satisfaction, increased basket sizes, and new younger customers; management believes it could become a second growth engine alongside pizza.
• Positive Sentiment: Domino’s is pursuing several organic growth levers, including a national loyalty rollout later this year, profitable aggregator expansion, new product innovation, and supply-chain productivity initiatives expected to generate savings from 2026.
• Neutral Sentiment: The company is fully hedged on key costs for 2026 and has a largely undrawn £300 million revolving credit facility, but it plans to refinance £200 million of USPP notes maturing in July 2027 and intends to prioritize debt reduction over shareholder returns beyond its dividend.

Presentation

[Nicola Frampton, CEO at Domino's]

Let me start with the headline. Our half one performance shows a business that is delivering results and building confidence. We have grown sales and orders. We have opened more stores. We have continued to gain share across our key markets, and we have increased profit and cash generation. These data points matter because they show progress against the priorities we set out in March. We said we would focus on the core, strengthen the foundations, and build disciplined organic growth opportunities. Six months on, we are seeing early evidence that the strategy is working. Importantly, we are not relying on a market recovery to do the work for us. We are using the assets that make Domino's distinctive: our brand, our scale, our store network, our delivery capability, our data and digital capabilities, and of course, our supply chain.

[Nicola Frampton, CEO at Domino's]

Those strengths give us the right to winning pizza, and they give us the right to expand into new occasions, delivering organic growth in a disciplined way. I am now going to hand over to Andrew, who will take you through the financial performance in detail, and I will then come back to explain why I am increasingly confident in the organic growth opportunity ahead.

[Andrew Andrea, CFO at Domino's]

Thanks, Nicola, and hello, everyone. As Nicola's just highlighted, this has been a strong first half with positive progress across all key financials. Sales and orders grew in the period, feeding positively to all P&L metrics with EBITDA up 3.6% and EPS up around 5%. Importantly, this earnings growth has contributed to improved free cash flow, up significantly to just over GBP 50 million, which I will expand on later. As a consequence of this performance, together with our confidence in achieving our full year expectations, we are proposing an interim dividend of GBP 0.037 per share, up around 3% on last year. Looking at how that trading built through the half, as we reported back in April, we had a strong Q1 with both sales value and orders in like-for-like growth. Although CHICK 'N' DIP was launched in February, the Q1 performance was predominantly pizza driven.

[Andrew Andrea, CFO at Domino's]

Q2, that positive momentum has continued, and whilst chicken has clearly contributed, importantly, pizza continued to grow, supported by the launch of our Italianos range and the commencement of the World Cup tournament. The conclusion of the World Cup contributed to continued positive trading in July. The growth in system sales drove uplift in all of the DPG revenue lines, with supply chain revenue up 2.5% on higher volumes and royalty revenues up 5.4%. The growth in corporate store sales principally reflects the Victa acquisition, but importantly, we've seen an improvement in underlying trading across our Irish businesses. Turning now to profit, as I mentioned earlier, EBITDA grew just over 3.5% to GBP 66 million, driven by higher supply chain profit, royalties, and corporate store income.

[Andrew Andrea, CFO at Domino's]

The increase in depreciation and amortization reflects investment in supply chain, corporate stores, and IT systems, and finance costs were higher, reflecting the higher cost of our new bank facility that we entered into last year. Importantly, both of these increases are in line with our expectations, and EPS was up around 5%, reflecting the impact of last year's share buyback activity. Finally, on costs, we are fully hedged on all key items for 2026 with some arrangements extending into 2027. Currently, therefore, we're not foreseeing any material cost or supply issues arising this year or next. Moving on to cash flow and debt, the increased earnings have positively contributed to cash flow in the period.

[Andrew Andrea, CFO at Domino's]

We've clearly seen a significant working capital improvement, and we would expect some, but not all of that, to reverse out in the second half year with some improvements made in our underlying stock and creditor management. The other item of note is cash tax, reflecting a refund in respect of historical U.K. and Ireland transfer pricing arrangements. Overall, therefore, even if we discount back the working capital, we've achieved a significant cash improvement in the period. On the balance sheet, we are well-financed. We have a GBP 300 million RCF maturing in 2030, which is almost entirely undrawn with extension and accordion options within it. In addition, we have GBP 300 million of USPP notes. GBP 200 million of these notes mature in July 2027, and our plan is to refinance this tranche by the end of the year with the final quantum and tenure to be determined.

[Andrew Andrea, CFO at Domino's]

To summarize, this is a picture of strong, dependable cash generation underpinned by a strong balance sheet. We're also investing behind our growth with full year CapEx of around GBP 35 million planned for this year. The majority of this spend will be into supply chain, principally reflecting the Avonmouth investment and other initiatives that Nicola will expand on later. Roughly GBP 3 million is being invested into new stores in Ireland and around GBP 8 million into e-commerce funding digital innovation for the future. Looking forwards, we're anticipating a run rate level of investment of around GBP 20 million in line with depreciation, and at this stage, for 2027, anticipate an additional GBP 5 million of growth CapEx in our supply chain operations. Finally from me, our capital allocation framework is simple, but we have perhaps not explained it clearly historically. Our priorities are clear.

[Andrew Andrea, CFO at Domino's]

First, invest in the core business to support sustainable growth, combining run rate maintenance CapEx, as I've just mentioned, together with growth CapEx underpinned by a rigorous discipline of a 20% minimum return hurdle rate. Secondly, maintaining a sustainable and progressive dividend is important, protecting the real value of the dividend with nominal increases loosely linked to inflation over time. Thereafter, any residual cash can then either be used to pay down debt or return to shareholders in the form of buybacks or special dividends. In evaluating this, we have a stated leverage target of 1.5x-2.5x, and we are at 2.3x at the half year, reflecting the timing of the SCC investment.

[Andrew Andrea, CFO at Domino's]

Our aim is to operate towards the lower end of that leverage range. As such, our primary focus is to use any excess cash after our two key priorities to pay down debt and reduce leverage. Importantly, as I have mentioned, we have a strong balance sheet, which provides us with flexibility to invest in the numerous organic opportunities under consideration, but not yet fully evaluated. This is intended to be a clear and simple framework. Organic investment in the business, maintain the dividend, and reduce debt and leverage over time. With that, I'll hand back to Nicola to take you through the strategy.

[Nicola Frampton, CEO at Domino's]

Thanks, Andrew. Let me turn to the strategy and how we are building our organic growth opportunity. The framework is deliberately simple. More customers by expanding our reach and attracting new cohorts. More often, by giving existing customers more reasons to choose Domino's across more occasions. More efficiently, by improving productivity so we have the capacity and the funds to deliver our growth agenda. These are not disconnected initiatives. CHICK 'N' DIP, loyalty, aggregators, and supply chain productivity are designed to work together. They give us multiple complimentary routes to sustainable organic growth. Before I go through those in more detail though, I want to start with why Domino's is so well positioned to deliver.

[Nicola Frampton, CEO at Domino's]

We are building from a position of real strength with one of the most recognized and loved consumer brands in the country, a brand that continues to go from strength to strength with unrivaled awareness and consideration. That strength is underpinned by four important foundations. A growing store network across the U.K. and Ireland. Unrivaled product quality combined with fast and consistent delivery remains a major competitive advantage. A world-class supply chain capability with the capacity to support future growth. And world-class franchisees with improving store economics. When we talk about growth opportunities like chicken, loyalty, aggregators, and productivity, we are not starting from scratch. We're taking assets that already exist at scale and making them work even harder. These are the foundations of our confidence, let me bring that to life with a couple of examples.

[Nicola Frampton, CEO at Domino's]

Our recent launch of a more premium pizza range with a hand-stretched Italian style crust gave existing customers another reason to buy from us more often, while also encouraging new customers to try Domino's. The early response has been encouraging, with strong repeat rates showing that the range is resonating with customers. We have a strong innovation pipeline across our core pizzas, sides, and new categories. Our brand strength also gives us permission to show up in popular culture and benefit from big moments. Whether that was the Fury versus Makhmudov fight on Netflix or the launch of our Shirtiette for the World Cup, we have successfully tapped into moments of heightened demand. Customers know and trust what Domino's stands for. Great product delivered quickly that never fails to delight the crowd. Our foundations have never been stronger.

[Nicola Frampton, CEO at Domino's]

Our ambition is now to build on them, creating even more reasons for customers to choose us, and in doing so, delivering our growth ambitions. As I said, the early signs are positive. We have a large and loyal customer base, and they are responding to the investments we've made in innovation, value, service, and our digital capability. We're seeing customer growth and increased frequency. More importantly, this means we're gaining share. These are important leading indicators. They show that the strategy is influencing customer behavior in the way that we expected. With a customer frequency of just under four and a half times, encouraging customers to choose Domino's just one more time a year would have a meaningful impact on orders and value. We believe we can give customers many more reasons to choose us across additional occasions.

[Nicola Frampton, CEO at Domino's]

One clear proof point of that is CHICK 'N' DIP. CHICK 'N' DIP is much more than a product launch. It's an important strategic test of how far we can extend Domino's beyond the traditional pizza occasion. The logic is straightforward. Chicken is a large adjacent category. We can enter it using our existing system rather than building a new one, and we can do that without significant additional capital investment. What makes this opportunity attractive is that this is not about taking more share within pizza, it's about winning occasions where Domino's has not historically participated. The demand for high-quality chicken with great flavor is continuing to grow, not just in the U.K. and Ireland, but globally. Historically, many chicken occasions have been enjoyed in-store or restaurant. Increasingly, customers are looking for that same great chicken occasion at home in the same way they already enjoy pizza.

[Nicola Frampton, CEO at Domino's]

That is why we can win. We can offer customers an outstanding chicken product, great flavor, and deliver in under 25 minutes through our 1,400-strong store network from a brand they already trust. Today, we have just 4% share of a chicken market worth GBP 3 billion. The headroom is significant, and the opportunity plays directly to our strengths in brand, marketing, and digital engagement. As I said, we can do this without significant CapEx or material changes to our in-store operations. It's the strength of our model that means we can add this occasion without compromising the pizza proposition that remains at the heart of Domino's. This is not diversification away from pizza. It's a disciplined extension of Domino's into a broader set of takeaway occasions. The real test, of course, is customer behavior, and this is where the early results are particularly encouraging.

[Nicola Frampton, CEO at Domino's]

Our champion customers love having another reason to choose Domino's across additional occasions with over 80% of customers who have tried it saying they're highly satisfied. They are buying from us more frequently since the launch of CHICK 'N' DIP. They are not substituting pizza for chicken. They are adding it to their baskets, which is helping drive higher average order values. We're also seeing orders from new, younger customers who are choosing CHICK 'N' DIP in more social occasions. The launch is helping us broaden the appeal of the brand and build stronger relationships with the next generation of Domino's customers. Taken together, that gives us the confidence that CHICK 'N' DIP can become more than a successful launch. It has the potential to become a second growth engine for the business. CHICK 'N' DIP gives customers more reasons to choose us and helps us attract new customer cohorts.

[Nicola Frampton, CEO at Domino's]

Loyalty is an equally important strategic growth lever. It is about rewarding customers when they choose us more often and building a strong relationship with them over time. Loyalty drives frequency. As I showed earlier, even a small improvement in frequency, given the size of our customer base, can translate into significant order growth over time. We're really encouraged by the progress we've made with Domino's Rewards and its ability to drive frequency. We have a strong pilot scheme with 2.2 million active customers. That's shown us the potential for the platform to drive deeper engagement, stronger retention, and ultimately greater lifetime value, driving orders across all of our customer cohorts. It helps us turn a large customer base into a more engaged customer base.

[Nicola Frampton, CEO at Domino's]

As you know, we have been building a permanent platform with Open Loyalty, a world-class loyalty provider, which will enable us to optimize the program and unlock further value over time. We are on track for the full national rollout of the new full scheme later this year, giving us the opportunity to engage our customers in a more meaningful way than the pilot allows. It will also help us attract new direct customers through a more dedicated rewards experience. In time, it will also give us richer data and a stronger platform for personalized marketing, helping us improve retention, increase frequency, and lower acquisition costs. That's why loyalty is strategically important. It's not just about giving customers rewards. It's about creating a more relevant and more valuable relationship with them, an important long-term frequency engine in the business.

[Nicola Frampton, CEO at Domino's]

Loyalty helps us deepen relationships with customers who already know us. Aggregators help us broaden our reach and access customers who are choosing to buy through different channels. The aggregator market continues to grow, and Domino's has a clear opportunity to grow profitably by reaching customers who are not active in our own channel. These are customers who are often younger, more affluent, less price sensitive, and may prefer to order through their aggregator of choice. That makes aggregators an important route to incremental reach. The opportunity is not to just appear on these platforms. It's to use them in a way that expands our addressable market and brings new customers into the Domino's experience. That's why we're approaching aggregators as a customer access channel, not as a replacement for our own channels. The focus is on profitable, incremental growth.

[Nicola Frampton, CEO at Domino's]

Done well, this allows us to participate in a growing part of the delivery market while staying true to the strengths of our own model. This opportunity also leverages what we already have, our brand, our store network, our operating infrastructure, and the strength of our delivery model. Hot food deliveries through aggregators can often be slower because there's a handover break between kitchen and driver. That handover break does not always guarantee that products arrive hot, delicious, and in under 25 minutes on average the way we do. We address that gap by continuing to use our brilliant franchisee network to deliver the products ourselves, and the data shows that our strategy is working. Incrementality of customers and orders is high. Satisfaction with Domino's on aggregator platforms is strong, and we are seeing growth in our active customer base as a result. Aggregators are not just another channel.

[Nicola Frampton, CEO at Domino's]

They're a disciplined way to reach incremental customers using a service model that is already a Domino's strength. The final lever I'm going to talk about today is productivity. The initiatives I've described earlier create customer growth and revenue opportunities, but sustainable growth only creates value if we can support it operationally and financially. That's why supply chain productivity is such an important part of the plan. Domino's has one of the strongest supply chain operations in the sector. It's a genuine competitive advantage. I often describe delivery as our superpower, and that applies not just to customer deliveries but to our supply chain center deliveries, too. We operate with high service levels, high food availability, and high delivery accuracy. Every week, the network gives stores and franchisees all of the products they need to serve customers consistently and reliably. We also continue to make store deliveries more sustainable.

[Nicola Frampton, CEO at Domino's]

By the end of this year, a quarter of our units in our distribution fleet will be lower emission using a combination of CNG, HVO, and electric vehicles. The customer never sees the supply chain, but they feel the benefit every time the product is available, the order is accurate, and the delivery is on time. Our investment in SCC5 has strengthened that capability further, giving us additional capacity, resilience, and efficiency. That gives us the operational base from which to drive the next wave of productivity, and productivity allows us to invest behind growth while maintaining financial discipline. As I shared in March, we've identified a wide range of productivity opportunities across the business.

[Nicola Frampton, CEO at Domino's]

Seven are currently underway across various sites, ranging from production automation that increases throughput to warehouse automation and automated de-boxing, picking, and loading processes, which collectively will deliver cost savings in 2026 and further benefits in 2027. As we talk about sustainable growth, we are equally focused on how that growth is delivered efficiently, profitably, and with discipline. Let me bring this together. Returning to the framework I set out earlier, more customers, more often, more efficiently. CHICK 'N' DIP gives us a route to more occasions and new customer cohorts. Loyalty gives us a route to higher frequency and deeper relationships. Aggregators give us a route to incremental reach. Productivity gives us the ability to support that growth efficiently and profitably. None of this depends on a single big bet. These are practical executable levers.

[Nicola Frampton, CEO at Domino's]

They use the strengths we already have in the business, and together they give us multiple routes to sustainable organic growth. In pizza, we continue to strengthen our leadership position. That demonstrates the resilience of the core business and the effectiveness of our investment in innovation, value, and customer experience. In chicken, the early performance of CHICK 'N' DIP gives us confidence that Domino's can participate in a broader set of customer occasions. Across the wider takeaway market, we're increasing our relevance with consumers and gaining share of the bigger pie. These proof points are important. They show the strategy moving from intent into execution. We're strengthening the core business. We are expanding the addressable market. We are building multiple routes to long-term growth. I'll close by returning to the word confidence. There are three reasons I feel confident looking ahead.

[Nicola Frampton, CEO at Domino's]

First, half one gives us encouraging evidence that those actions are now translating into performance. The core business is performing. We're delivering sales growth, order growth, profit growth, and strong cash generation, and gaining share. Second, we have multiple organic growth levers across the short and medium term, and we're beginning to see evidence that they are also working. Third, we have a strong pipeline of further opportunities still under evaluation, giving us confidence that there is more growth potential to unlock for Domino's. I look forward to bringing those back to you as they become more fully formed. Importantly, we remain confident in delivering our full-year expectations. Thank you.

Participants

Analysts

• Nicola Frampton, CEO at Domino's
• Andrew Andrea, CFO at Domino's