Domino's Pizza Enterprises Ltd (ASX: DMP) is strategically restructuring its operations to achieve an annual improvement of approximately AU$55 million in underlying performance. The company plans to exit the Danish market, streamline core operations, and reduce the corporate store network to capitalize on global reach and scale. Immediate actions include closing all 27 stores in Denmark and refranchising or closing around 65-70 underperforming corporate-owned stores.
These measures are projected to enhance EBIT by AU$25-AU$30 million in FY2024. Despite slower growth in weekly orders, Domino's remains focused on increasing profitability through increased sales and strategic initiatives which include exiting the Danish market by the end of FY2023, optimizing the corporate store network, closing underperforming facilities in South-East Asia and legacy IT assets, and streamlining core operations. Domino's trading update stated that FY2023 new store openings at 6-7%, below FY2024 target. Same Store Sales improving but below FY2023 outlook. Focus on increasing delivery customers for profitability. Long-term growth projection unchanged at 7,100 stores by FY2033.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
