Dominos Pizza Enterprises has just reported its first annual loss in two decades as it posted a net loss of A$3.7 million in the fiscal year 2025. The firm had made profits of A $96 million previously.
Shares of Domino’s fell nearly 20% after the results, marking their sharpest decline since July. The announcement has raised concerns across the fast-food sector, especially within the pizza market.
Domino’s Pizza Enterprises Store Closures
The financial loss is attributed to closures of Dominos Pizza Enterprises stores in the aspects of low performance. A total of 312 shops on a global basis were closed such as 233 in Japan and 32 in France. The closures follow the challenges of slumping sales and soaring operating expenses.
Revenue and Sales Decline
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Revenue dropped 3.1% to about A$2.3 billion.
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Same-store sales fell by 0.2% during the year, with an additional 0.9% decline in the first seven weeks of the new fiscal year.
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Japan and France markets reported the sharpest declines, contributing to the overall downturn.
Strategic Changes at Domino’s Pizza Enterprises
Domino pizza enterprises have announced an alteration in their mode of pricing. The company will stop heavy discounting and using vouchers, moving towards everyday pricing strategy, which may be applied to other markets as well.
To solidify the market share in the international pizza market, the company will also pay attention to cost-cutting activities, franchise assistance, advertisement, and core business workings like food quality and value.
In July 2025, CEO Mark van Dyck, who had joined in late 2024, announced his resignation, and will leave the firm by December. The turnaround will be overseen by the Executive Chairman Jack Cowin in the interim period
The company’s stock remains under pressure, reflecting investor concerns following the Domino’s Pizza annual loss and global restructuring.
