Domino's Pizza plans to close 205 loss making stores globally, but continues to expand in the Chinese market

On February 7th, Red Star Capital announced that Domino's Pizza will close 205 loss making stores, of which 172 are located in Japan. Regarding the global closure, Domino's Pizza stated that the purpose of the closure is to enhance profitability.

Red Star Capital noticed that Domino's Pizza is closing stores globally while expanding in the Chinese market. In the first half of 2024, Domino's Pizza's exclusive general franchisee in China, Dashi Shares (01405. HK, hereinafter referred to as "Domino's China"), has a net increase of 146 stores and plans to open 240 stores in 2024. Domino's China also stated that it will continue to implement its network expansion strategy of deepening and expanding, while further penetrating existing markets and entering more new cities.

In the first half of 2024, Domino's China will have a net increase of 146 stores and plans to open 240 stores in 2024. On November 15, 2024, the 1000th store of Domino's Pizza in Chinese Mainland will be opened in the MIXC. Dashi Group also stated in its 2024 semi annual report that it will continue to implement its network expansion strategy of deepening and expanding, while further penetrating existing markets and entering more new cities.

In 2024, Domino's Pizza also performed well in the Chinese market, with revenue rising for three consecutive quarters. Revenue in the first quarter increased by 5.88% year-on-year, revenue in the second quarter increased by 7% year-on-year, and revenue in the third quarter increased by 5.14% year-on-year. In the first three quarters, the company's revenue reached 3.263 billion yuan, a year-on-year increase of 6.05%. After five consecutive years of losses, Domino's China achieved profitability in the first half of 2024.

Resource: 红星新闻