Domino’s reported FY22 EBIT of $263 million, down 10%. The result showed a slowdown in network sales growth and reduction in profit margins given continued cost growth. The company has said trading improved early in FY23e and it will look to raise prices in Europe to deal with higher costs. We expect sales to remain subdued in 1H23e and are cautious about European margins given consumers may have less disposable income. The upgrade to FY24e reflects the acquisition of additional Asian territories and low-cost debt funding.