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Domino’s details restructuring, sale of 60 units

ANN ARBOR Mich. Domino’s Pizza on Tuesday outlined several restructuring steps, including the sale of about 60 company-owned stores in California and Georgia.

The company, which recently reported a 48-percent plunge in fourth-quarter net profit, said in statement filed Tuesday with federal regulators that it was selling the stores in separate transactions to franchisees and employees for about $20 million. Those sales are expected to be finalized before the end of the second quarter, said Domino's, which added that it plans to use the proceeds for general corporate needs.

As previously reported, the 8,624-unit pizza delivery chain has laid off about 55 people from its corporate and field staffs to reduce operating costs. Domino’s expects the job cuts to result in pre-tax annualized operating cost savings of $4.5 million, excluding severance costs. For the rest of 2008, Domino's said it estimated pre-tax savings of $3.5 million, excluding severance.

Domino’s said in the filing that the layoffs would likely result in a charge of about $1.3 million, including severance-related costs of $1.1 million, in its current first quarter.

In trading on Tuesday, Domino's stock inched up a penny per share, to close at $13.34.

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