Domino's Pizza Enterprises Announces Store Closures, Positive Start to Fiscal 2025
Sydney, Australia (Reuters) - Australian pizza chain Domino's Pizza Enterprises (DPUKY) is experiencing a record-breaking intraday surge in share prices, driven by the news of store closures and positive earnings outlook.
The company announced plans to shut down 205 underperforming stores, primarily in Japan, where demand has declined after the pandemic and costs have risen. Domino's expects the closures to generate annual savings of approximately A$15.5 million, improving profitability.
"Our COVID-period expansion included stores that weren't optimal," said CEO Mark van Dyck. "Removing them strengthens our network."
In addition, Domino's reported same-store sales growth of 4.3% in the first five weeks of the second half of fiscal 2025, signaling a promising start.
"It's a future-proofing strategy," said market strategist Jessica Amir. "Domino's is a market leader poised for continued revenue growth."
Domino's anticipates an underlying net profit before tax of A$84 million to A$86 million for the first half of fiscal 2025, within its previous forecast. The company also plans to distribute an interim dividend of 55.5 Australian cents per share.