Domino’s Pizza Enterprises (DPE), the ASX-listed master franchisee for the US-based namesake brand, has told investors of significant losses and store closures ahead of its full-year earnings report.

But the market has reacted positively to the news.

DPE is recognising $259 million in write-downs on the balance sheet in the wake of underperformance in France, Taiwan, the company’s IT software projects, and store assets. It will also close 60 company-owned stores.

These measures, however, haven’t encroached on profits; DPE expects its after-tax figure to sit between $118 million and $122 million. At the same time, it has bolstered its free cash flow by $116.6 million from 2025.

“A comprehensive review of the company’s balance sheet has been undertaken to ensure the carrying values of our assets appropriately reflect current market conditions, our revised strategic priorities and the long-term outlook for each business,” said executive chairman Jack Cowin.

On August 5, Andrew Gregory will begin his role as the group’s CEO and MD. Cowin said Gregory’s priority will be improving sales growth and franchisee profitability.

“The write-downs announced today are predominantly non-cash and reflect the outcome of a comprehensive review of our balance sheet and strategic priorities,” group COO and CFO, George Saoud, added. “These actions strengthen the quality of our asset base and do not impact the company’s cash generation, banking covenants or underlying operating performance.”

Saoud said fiscal 2027 will be entered from a “position of financial strength”. Investors on the ASX agreed; DPE’s share price shot up by 11 per cent in response to the update.