Domino's Pizza Enterprises will close more than 200 stores, including some in Australia.
The Pizza Giant told the Australian stock market that it would close the 205 unprofitable stores, including 172 in Japan and the remaining locations in France and Australia.
Domino's Chief Executive Mark Van Dyck said that the closures were part of a strategic review to simplify its activities and close stores that were open during the Covid Pandemie.
“When I started in this role three months ago, I said we would be decisive to reform our company for long -term success,” said Mr Van Dyck.
“Where change is required, we act quickly and transparently.”
RBC Capital Markets analyst Michael Toner called the Store Closures a 'logical' decision based on the trade views of Japan.
“We believe that investors should take a positive view of the company's position to restore the health of the network in Japan by storing stores and concentrating on profitable growth,” he told the ABC.
Domino's shares were 21.6 percent firmer at $ 36 at 1 p.m. AEDT, after the trade update for the first half of 2024-25.
Domino's Pizza Enterprises will close more than 205 stores, including some in Australia
“Our priority remains clear – creating value for customers, franchise partners and shareholders,” said Mr Van Dyck.
Of the 172 stores that are planned for closing in Japan, 114 are run by the head office, while 58 are franchise.
Dominos' said investors that it had opened too many stores during COVID when Lockdowns increased the demand for collection meals and home deliveries.
“Many of these stores were opened during the COVID-19 Sales rise, but have since struggled with falling post-pandemic demand and higher input costs,” it said.
But the Lord Van Dyck said that Domino's are still using Japan.
“Japan is an attractive market for fast service restaurants and pizza, with a considerable long -term advantage for Domino's,” he said. '
“Part of our expansion of COVID period resulted in stores that were simply not optimal based on our current customer proposition and its removal will strengthen our network.”
