By Rishav Chatterjee
(Reuters) -Australia’s Domino’s Pizza Enterprises on Wednesday said it expects earnings in fiscal 2024 to be significantly higher than 2023 as it continues to cut costs.
Domino’s reported earnings before interest and income tax (EBIT) of A$201.7 million ($127.7 million) in fiscal 2023, down 23.3% from 2022.
Year-to-date same store sales at 10 of 12 of the pizza maker’s regions were positive, except for Japan and Taiwan, the company said.
The company is also planning to deliver higher sales in the significant Christmas trading period, it said in a statement.
Domino’s has exited its Danish operations and closed underperforming stores over the year, as it eyes A$50 million to A$60 million of network savings over fiscal 2024.
“We are already seeing positive improvements to franchisee partner profitability, which is increasing their appetite to open new stores,” said Managing Director and CEO, Don Meji.
Brokerages have expressed their support for Domino’s strategies over the past few months, with analysts at Citi viewing the initiatives as an effort to improve “same-store-sales growth and franchisee profitability.”
Shares of Domino’s ended 3.1% higher at A$52.4 and logged their best day on the benchmark index since Oct. 12.
($1 = 1.5798 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Savio D’Souza and Varun H K)
