Domino’s Pizza Enterprise announces historic $3.7 million loss, unveils strategic reset

The main franchise operator of Domino’s Pizza Enterprise for New Zealand, Australia, and several other countries has announced an annual loss of $3.7 million for the year ending June 30.

The first annual loss ever recorded sent share prices into a steep decline. The company released a fiscal year report on August 27, 2025, revealing a massive drop in sales. A new “strategic shift” is introduced to fix the business.

Last year, Domino’s made a $92.3 million profit. The current one-time loss is mainly caused by closing 312 underperforming stores, particularly in France and Japan.

The news hit the stock market so hard that Domino’s shares plummeted more than 20%, for the first time in a decade.

The pizza chain is changing its business model, stepping away from the “high-low” strategy, which relied on special deals and voucher discounts. It is introducing “everyday value” to improve profitability and simplify operations.

Jack Cowin, the new Executive Chairman, said in a press release: “We are taking action to make Domino’s a leaner, more efficient business. That means reducing costs- and using those savings to support our franchise partners and invest in marketing that drives sales. We will share the rewards when we get it right- with customers, with partners, and with shareholders.”

In New Zealand, the prices will be changing. A Domino’s spokesperson from New Zealand confirmed, “Our commitment remains the same- great quality pizza, delivered fast, at a price that represents real value for Kiwis.”

The company is now focusing on its “recipe for growth” strategy, which includes reinvesting in its core business, improving efficiency, and paying down debt.”

What is Domino’s Pizza Enterprise?

Domino’s Pizza Enterprises (DPE) is the largest Master Franchisee for Domino’s Pizza, Inc.