Domino’s trading update revealed the company is yet to find a way to raise prices without damaging volumes. EBIT is on track for a 21% fall to about $92 million in 2H23e. We estimate FY23e EBIT at $206 million rising to $223 million in FY24e given announced cost savings. The balance sheet position is particularly tight at the end of calendar 2023, but we see a lower dividend payout as most likely to avoid a capital raising. The earnings trough is in sight. However, the PE ratio is still high and the company will need to demonstrate franchisee profitability can improve in order for the share price to rise from here.