Domino's Australia operator eyes record intraday jump on store closures

Dominos Pizza Enterprises

07/02/2025 03:31

(Updates shares, adds Citi comments)
    ** Domino's Pizza Enterprises  DMP.AX  soars as much as
23.84% to A$36.680; set for biggest intraday pct gain ever
    ** Pizza maker says it will close 205 loss-making stores,
including 172 in Japan
    ** Sees annualised cost savings of A$15.5 mln ($9.74 mln)
from store closures
    ** Adds same-store sales for the first five weeks of H2 of
FY25 up 4.3% on-year
    ** Citi says cost management has been effective in
controlling expenses but caution prevails on DMP's ability to
sustainably grow its rev in key high-growth markets
    ** "However, it is still unclear what impact the loss of
scale from closures will have on sales and buying power"
    ** Stock currently up 21.91%, highest since October 22, 2024
    ** About 1.7 mln shares traded vs 30-day avg of ~302,998
    ** DMP up 22.93% YTD
        
  
($1 = A$1.5921)

 (Reporting by Aaditya Govind Rao and Roushni Nair in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com))