The new information in Domino’s 1H25 result about its franchisee profitability and pending strategic update leave a degree of uncertainty on the stock. Franchisee profitability is still 34% lower than where it needs to be. We expect a strategic update in May or June 2025 to focus on margin improvement opportunities. Given EBIT margins are 5% vs a potential of 7%, the upside is meaningful. Domino’s will need a new investor audience attracted to the margin upside, because store growth is likely to be lower.