In 2025, Australia’s Domino’s Pizza Enterprises (DPE) is undergoing a significant transformation, shifting from rapid expansion driven by the pandemic to a more measured approach focused on refinement.

As the market continues to evolve, many investors are taking note of one of Australia’s fastest-growing pizza chains, which has steadily expanded its footprint while supporting franchisee success.

1. Boosting Profitability
On February 7, 2025, DPE announced it would close 205 underperforming stores globally, with 172 of those in Japan. Although this restructuring incurs a one-time cost of A$61.8 million, it is expected to yield annual savings of approximately A$15.5 million and deliver ongoing profit improvements of A$10–12 million in EBIT.

While there is some impact on the Australian market, the overall focus on operational efficiency is poised to benefit it substantially.

2. Growing Investor Confidence
In the wake of this announcement, DPE’s shares jumped by 23.8% in a single day, marking the most significant increase since October 2024.

This sharp rise signals a renewed optimism among investors, although DPE remains the fifth most shorted stock on the ASX, as the company continues its efforts to regain stability.

3. Strong Franchisee Performance
In the early part of the second half of FY2025, comparable sales climbed by 4.3%, indicating a rebound in consumer spending.

DPE expects to report a pre-tax profit of A$84–86 million for the first half of FY2025 and plans to maintain its interim dividend at 55.5 cents per share.

Even with a 2.9% decline in network sales due to store closures and currency fluctuations, franchisee EBITDA experienced a robust growth of 13.7%, averaging A$96,400 per outlet.

4. Resetting Global Strategy
DPE operates approximately 3,700–3,800 stores worldwide, with recent closures resulting from overexpansion into lower-performing markets during the pandemic.

Under CEO Mark van Dyck’s leadership, the focus is shifting toward cost discipline, enhancing digital ordering, optimising menus, and bolstering support for franchisees.

CEO Don Meij characterised the decision as a reset aimed at long-term sustainability, stating, “We’ve taken decisive action to reshape our business for the future. This approach ensures that our franchisees are set up for success and that we are in markets where we can achieve sustainable, profitable growth.”

Rather than pulling back, Domino’s Australia is recalibrating its strategy to build a more intelligent, more resilient franchise network. 

How Does 2025 Look for Domino’s Franchises?

(Source: Scrape Hero)

Domino’s franchise network in Australia has experienced steady growth over the past five years, despite the challenges posed by the pandemic. This shows the strength of their brand and management. 

Recent store closures are part of a strategy to support franchisees better. Overall, 2025 is shaping up to be a year of steady growth and stronger franchisee success in Australia’s fast-casual market. In 2025, the emphasis will be on disciplined operations and franchisee success, which will be crucial for driving future growth and establishing a stable and profitable model within the fast-casual quick-service restaurant sector.

(Sources: Reuters, Domino’s Pizza , Investing, Market Index)