Thursday, 6 March 2008

Domino's Pizza Sells 60 Stores

Domino's Pizza, has entered into agreements for the sale of approximately 60 company-owned stores in California and Georgia in separate transactions with current franchisees and employees of the company.

The proceeds from the sale of the stores are expected to be approximately $20 million and the sales are anticipated to be completed before the end of the second quarter of 2008.The company does not expect the sale of the stores to materially affect its operating income. The proceeds from the sale of the stores will provide available cash for general corporate uses.

On February 27, 2008, the management of the company finalized a plan to streamline operations, maximize efficiency and reduce operating costs. The plan includes a reduction in force of approximately 55 positions. Total annualized operating cost savings related to the plan, excluding severance costs, are expected to be approximately $4.5 million. The estimated operating cost savings related to the plan for the remainder of 2008, excluding the cost of severance, is expected to be approximately $3.5 million.

The company expects to incur a charge in connection with the plan in the first quarter of 2008 of $1.3 million, including severance related costs of $1.1 million. The plan is expected to be completed in the first quarter of 2008 and the related payments are anticipated to be completed in fiscal 2008.

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