Domino’s Pizza Enterprises Ltd (ASX:DMP) has seen lower earnings in the first half of 2025’s fiscal year, underpinned by weaker performances in Asian and European stores – though that was offset somewhat by stronger demand in Australia.

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The company’s group earnings before interest and tax was $100.6 million for the half year ending December 2024 – a fall of 6.7% from the prior period.

In regional performances, earnings from stores in Asia were down 19% to $17M while European earnings were 11.1% lower, at $32.3M; particular concerns were raised about store underperformance in France and Japan.

By contrast, Australia was where demand lay with $67.7M in earnings – a 7.6% lift.

Dominos also recently announced the closing of 205 loss-making stores as part of a company-wide review to improve performances.

Following this, the company set its interim dividend at 55.5cps unfranked.

“At our recent trading update, we announced the first outcomes of a detailed operational and financial review to create a simpler and better Domino’s, including taking decisive actions to close loss-making stores and deliver savings to reinvest in growth,” CEO and managing director Mark van Dyck said.

“Those steps were the first in a comprehensive business review, which is ongoing, designedto improve profitability, strengthen franchise partnerships, and position the business for long-term sustainable growth and improved shareholder returns.

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“Cost control plus sales growth is a powerful equation in our business: our model deliversgreat leverage for stores as they build sales but we know there is more work to be done.”

Dominos shares fell after the news, and at 12:19 AEDT, they were trading at $28.54 – a drop of 11.56% since the market opened.

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