Domino's Pizza Enterprises (ASX:DMP) will close loss-making 205 stores, of which 172 are located in Japan, the company shared in a trading update filing with the Australian bourse.

The store closures will add an estimated annual savings of AU$15.5 million while carrying a one-off cost of AU$97 million.

Company same-store sales in the fiscal first half ended Dec. 31, 2024, dropped 0.6% compared to a year earlier. Same-store sales in Australia and New Zealand region gained 0.6% in the period.

The global pizza seller expects fiscal first-half net profit before tax of AU$84 to AU$86 million, within its guidance range.

The company intends to determine an interim dividend of AU$0.56 per share, unchanged from a year earlier, added the filing.

Company shares were up 19% in recent trade, earlier reaching their highest since October 2024.

Price (AUD): $35.30, Change: $+5.7, Percent Change: +19.16%