The Australian chain announced in a trading update that it would shut 205 loss-making stores, most of which are in Japan.

The company estimated the closures would carry a one-off cost of $97 million, but would result in annualised savings of about $15.5 million.

The axe-swinging comes three months into the tenure of CEO and Managing Director Mark van Dyck.

“When I started in this role three months ago I said we would move decisively to reshape our business for long-term success,” he said in the statement.

“Where change is required, we are acting quickly and transparently. Our priority remains clear—creating value for customers, franchise partners, and shareholders.”

Domino’s will close 172 stores in Japan to focus on their better performing regions.

“Many of these stores were opened during the COVID-19 sales surge but have since struggled with declining post-pandemic demand and higher input costs,” the statement read.

“Stores selected for closure have low weekly order volumes and limited ability to reach profitable weekly order counts in the near term.”

Domino’s currently has about 1000 outlets in Japan.

The chain did not detail where the other store closures would be.

Domino’s said Europe’s sales were positive despite a network sales loss of $20 million.

And Japan’s losses cost the company $45 million in the Asia region, despite positive growth in Singapore, Taiwan and Malaysia.

Australia and New Zealand was the only market to report positive growth for the company.

While Domino’s Pizza is an American brand, a separate company named Domino’s Pizza Enterprises is the master franchise for the brand in Australia.

The Australian franchisee also has stores across Asia and Europe, and is listed on the Australian stock exchange.

Domino’s shares on the ASX jumped on the news of the closures.