Domino’s US parent fires warning shot at Australian-listed operations

By the Editorial Team · Thursday, October 15, 2026

Domino’s Pizza Inc. has warned its Australian-listed subsidiary, Domino’s Pizza Enterprises, that continued losses, especially in its French operations, could prompt the US parent to divest some international markets. This ultimatum highlights the critical challenge facing DPE as it seeks to recover from substantial financial losses, with key improvements in store sales not expected until 2027.

Domino’s Pizza’s US parent company has issued a firm ultimatum to its Australian-listed arm, Domino’s Pizza Enterprises (DPE), warning that continued underperformance could lead to divestment of some international operations, including its significant presence in France.

DPE, which operates approximately 3,500 stores across Australia, Japan, and Europe, has been grappling with sustained financial challenges, particularly within its French business. Last year, the French stores reportedly incurred losses close to $10 million and contributed impairments of $87.25 million to the Australian parent’s balance sheet. France comprises roughly one-third of DPE’s European operations, making its performance critical to the overall regional portfolio.

Joe Jordan, CEO of Nasdaq-listed Domino’s Pizza Inc., expressed cautious support for DPE’s current leadership during an investor call, while also setting clear expectations. “I am confident that every market in their portfolio can be successful,” Jordan said, adding that the US company is open to continuing its partnership with DPE if it can deliver results. “If it is not right for them, then we will work with them to make sure that those markets can be successful in someone else’s hands,” he warned, marking the strongest indication yet that some international franchises could be reassigned.

DPE’s CEO Andrew Gregory, a former head of McDonald’s Australia, has been tasked with reversing the downward trend after the company recorded a $134.2 million net loss in 2025—the second full-year loss in over two decades as a public entity. Gregory has received strong backing from chairman Jack Cowin, a major shareholder and founder of Hungry Jack’s, who has pledged to steer the company back to profitability.

Despite ongoing efforts, there is growing impatience among US executives over DPE’s slow recovery. Finance chief Sanddeep Reddy noted that meaningful improvements in store sales are not anticipated before 2027. Gregory’s strategy centers on returning to high-volume sales as a path to profitability, a model that has proven successful for Domino’s worldwide. Jordan emphasized Gregory’s relevant international experience and the intent to continue collaboration, stating, “We will continue to work with Andrew as we see the progress in the markets on the overall portfolio.”

Analyst responses have been largely positive about the prospect of divesting underperforming assets. Citi analyst Sam Teeger suggested that selling the French operations could actually boost Domino’s share price, citing the persistent challenges faced in that market.

In August, Gregory traveled to France to engage with senior executives from both the US parent company and the franchise network, aiming to mend strained relationships. “I think what we have to do is work together,” Gregory said, emphasizing the need for trust and transparency moving forward.

Domino’s Pizza shares responded to the latest developments by closing down 2.01 percent at $21.46. As the company grapples with restructuring efforts, the coming years will test whether its international portfolio, particularly in Europe, can be turned around or will face further realignment.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.