Grim update for Domino’s amid store closures

Daftar Isi

In an announcement to the ASX on Tuesday, Domino's said it was looking to tackle these issues with an early review to trim costs and streamline the business.

The company has reported a loss of $22.2 million for the six months to December 29, hammered by $115.6 million in write-downs, impairments and restructuring costs.

A significant portion of these costs stem from a previously announced plan to shut down 205 underperforming stores across Australia, Europe and Asia.

The Australian Securities Exchange-listed company operates 3800 pizza stores in Australia, Europe, and Asia.

The closure of 205 stores – 172 of the 1000 restaurants in Japan, with most of the remaining closures in Europe and four in the Australasian region.

The company's CEO and Managing Director, Mark van Dyck, stated that the business is looking to apply the lessons learnt to boost performance in Japan and France.

Our recent decision to shut down 205 underperforming stores, including 172 in Japan, should

We will take the necessary steps to provide venture capital to reinvest in the venture.

“long-term, sustainable growth,” he said.

“Domino’s operates in a strong global pizza market with high growth possibilities and we”

will keep sharing our plans to reach that potential with our franchise partners and

Investors in the months ahead.”

Despite struggles in France and Japan, Domino's key Australian operation showed an improvement in its earnings.

In Australia, the company displayed signs of expansion, which were largely balanced out by Europe and Asia. As a result, same store sales growth fell by 0.6 per cent against the same period the previous year. Overall, sales plunged 6.4 per cent to $1.17 billion.

Domino's will still be paying its shareholders a dividend of 55.5 cents a share on the 2nd of April.

Mr van Dyck said he'd taken swift action to get the business back on track, with improvements expected through increased sales and stricter controls.

We recently provided an update on our trading, and announced the first results of a thorough review of our business operations and finances. This review aimed to simplify and improve Domino's, and we've taken bold steps to close underperforming stores and redirect the savings into investments that will drive growth.

“These results show we're making some progress, but we've still got work to do to create value for our shareholders, franchise partners, and customers – as we do that, we'll be focusing on getting our existing stores performing well and opening new ones in a controlled way, similar to what other retailers do.”