News

Struggles continue for Domino's Pizza in Canada

February 22, 2006

CALGARY, Alberta—Despite increases in gross sales and store counts, revenue and profit shortfalls continue to plague Canada's Pizza Delivery Corp., a 254-store Domino's Pizza master franchise group.

According to a news release, system-wide sales for the 13 weeks ended Dec. 25, 2005, were CAN $37 million (U.S. $32.2 million), compared to $36.7 million (U.S. $31.9 million) the year prior, and revenue was CAN $3.8 million (U.S. $3.3 million), down from CAN $4.3 million (U.S. $3.7 million).

For the first three quarters of its fiscal year, system-wide sales were CAN $102 million (U.S. $88.8 million) versus $98.8 million (U.S. $86 million) the year prior. Revenue was CAN $11 million (U.S. $9.6 million) versus CAN $11.6 million (U.S. $10.1 million).

The group cited employee shortages as the reason behind the temporary closure of three company stores. The closures placed it below the corporate-store minimum of 20 units required for master franchisees by Domino's Pizza International. The company said DPI granted a temporary waiver to allow CPDC time to reopen those stores and meet the requirement.