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Domino's Pizza Enterprises Limited

DMP.AX
49
Restaurants · Consumer Cyclical
Price
A$18.93
+0.11 (+0.58%)
Market Cap
A$1.79B
Exchange
Australian Securities Exchange
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Dec 31, 2025
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Strong
Stability
Good
Valuation
Good
Dividends
Mixed

Share count rising — dilution

+6.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 86.8M (2021) → 92.6M (2025)

Winston Score History

The full picture

Domino's Pizza Enterprises Limited is a fast-food company that makes and delivers pizzas, sides, and drinks. It is the largest Domino's franchisee in the world outside of the United States, operating stores across Australia, New Zealand, Europe, and Asia. The company does not own the global Domino's brand — it holds the franchise rights to run Domino's stores in its specific regions.

The company makes money by operating its own stores and by collecting fees and food sales from the franchisees it oversees. It runs roughly 3,900 stores across markets including Australia, Japan, France, Germany, and several other countries. Its competitive position comes from brand recognition, a strong delivery network, and its digital ordering platform, which drives a high share of sales through apps and online. The main risk the business faces is slowing store growth and pressure on consumer spending, as customers cut back on takeaway food when household budgets are tight.

Score breakdown

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Quality

Profit per sale
Gross Margin
26.8%
Modest — 26.8% gross margin
Profit after running costs
Operating Margin
8.4%
Modest — 8.4% operating margin
Return on the money invested
ROCE
9.2%
Below par — 9.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-1.6%
Shrinking sales (-1.6% YoY)
Profit growth
EPS YoY
+350.0%
Earnings growing fast (+350.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
291%
Turns 291% of profit into real cash
Spare cash per sale
FCF Margin
6.6%
Modest free cash flow (6.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
1.81
Elevated debt (1.81)
Covers its interest
Interest Cover
5.33x
Adequate interest coverage (5.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
30.0x
Pricey — P/E 30.0

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+16.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (30.0 → 13.4)

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Dividends

Dividend
Dividend Yield
2.66%
Moderate income — 2.66% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-44.5%
Dividend cut (-44.5% YoY) — warning sign

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