$Domino's Pizza Enterprises Ltd (DMP.AU)$ will buy the local Domino's equivalents in Malaysia, Singapore and Cambodia for $214 million plus a possible earn-out of $142 million from vendors Mikenwill, Impress Foods and other minority shareholders.
Franchise agreements have been approved from Domino's Pizza Inc for the next 25 years. The deal is 5 per cent earnings per share accretive to Domino's excluding transaction costs, and is cash and debt-funded.
The Asia store count target was upgraded to 3000 by 2033 from 2400.
Separately, Domino's reported as part of its trading update that network sales were down 2.4 per cent and same store sales fell 1.1 per cent at the start of the financial year. It is still targeting 3 per cent to 6 per cent same store sales growth this year.
A partially franked final dividend of 68.1¢ a share will be paid September 15.
Network sales in 2021-22 rose 4.6 per cent to $3.92 billion and EBIT fell 10.5 per cent to $262.9 million; net profit dropped 12.5 per cent to $165 million.