Domino’s bites into Taiwan market
03:17, 11 June 2021
Domino’s Pizza Enterprises (DPE), the ASX-listed fast food firm, has expanded its global footprint with the acquisition of Domino’s Taiwan for NT$1.7bn (AUD$61m) in a cash deal.
Domino’s Taiwan is the second-largest pizza chain in the island state, with 157 corporate and franchise stores, and DPE plans to expand this network to 400 plus stores. The Australian firm’s acquisition of the Domino’s Taiwan from Formosa International Hotels brings the total number of countries it operates in to 10.
DPE is a separate firm from franchise owner, US-headquartered Domino’s Pizza, and has operations in its home country, New Zealand, Denmark, Germany, Belgium, Luxembourg, France, the Netherlands, and now Japan.
Transaction complete by Q2 of 2022?
The addition of Taiwanese business will expand DPE’s Asian holdings by 18%. The transaction is expected to be completed by the second quarter of 2022.
As a result of the acquisition, DPE is revising its future store count outlook in Asia from 1,500 stores to 1,900 stores by 2032 and is aiming for 5,950 stores globally by 2033.
In 2021 Domino’s Taiwan recorded $73m in sales and generated $4.8m in earnings before interest, tax, depreciation and amortisation. DPE is valued at AUD$9.9bn (US$7.6bn) and finished trading on the ASX yesterday at $114.05.
The ASX 200 finished 0.4% higher yesterday at 7302.5 – the first time it had closed above 7300, due to strong performances by tech and property firms.
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