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%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.