Domino’s to close 70 stores worldwide and exit Denmark

Domino’s has announced it will close some 70 stores worldwide, including 30 Australian-owned branches in Denmark.

In a trading update, Domino’s said it has taken steps to deliver material, near-term, cost savings, improving efficiency and building a stronger foundation for future growth.

The company announced it will:

• close Domino’s Denmark
• carry out accelerated franchising and closure of approximately 65-70 underperforming corporate-owned stores
• complete planned commissary closures in South-East Asia, accelerated amortization of legacy IT assets
• streamline core operations to increase operational efficiencies

The company said it expects the combined savings will improve FY24 EBIT by approximately $25-30 million, with these savings expected to increase over the next two years as initiatives are completed. Approximately one-third of these savings are planned to be passed back to stores as management reinvests in the franchisee network base.

The full trading update is available here.