Domino’s Pizza will close 205 loss-making stores, mostly in Japan and Europe, to help boost profitability.
The pizza chain said it will shut 172 stores in Japan, 23 in Europe, and four in Australia and New Zealand.
“Some of our Covid-period expansion resulted in stores that simply weren’t optimal based on our current customer proposition and removing them will strengthen our network,” said Mark van Dyck, Domino’s Pizza Enterprises CEO and MD.
“To reach our potential, we are taking decisive action. We are also refining our value proposition and improving our pricing strategy to position existing and new stores for sustainable success.”
The overall store closures are expected to generate $10 million to $12 million annualised earnings before interest and taxes (EBIT) uplift with one-off restructuring costs of $61.8 million.
The company added that a comprehensive strategy review is underway to improve performance in key focus areas, including Japan and France.
For the fiscal first half, the company forecasts to report net profit before tax of $84 million to $86 million.
