Shares of Australia's Domino's Pizza Enterprises were heading for their biggest intraday jump ever on Friday, after the pizza chain operator flagged the closure of 205 loss-making stores and signalled a positive start to the second half of fiscal 2025.

Domino’s Pizza Enterprises said it will provide an update on its Japan strategy at an investor day during the June half.

Pizza maker Domino ’s will close more than 200 loss-making stores globally in a move it says will position the business for sustainable growth. Asia will be the region heaviest hit by the 205 closures, with 172 eateries to be shut in Japan alone.

Domino’s Pizza has slammed the brake on its historic ambitious and aggressive store roll out strategy, announcing it would close 205 loss-making stores, 172 in its struggling Japan market, as it also looks to slice its interim dividend more than expected to preserve its balance sheet amid a challenging fast-food market.

Shares of Dominos Pizza Enterprises (NYSE: DPZ) surged 23.8% to A$36.68 on Friday, marking their largest intraday gain ever. The rally follows the companys announcement to close 205 underperforming stores,

Some 172 of the stores to be shut are in Japan, where a pandemic-era sales surge has faltered, the Brisbane, Australia-based company said Friday. The closures will hit almost one in five of the 944 Domino’s stores in the Asian nation.

Domino’s Pizza Enterprises—controlled by fast food billionaire Jack Cowin—will shut 205 money-losing stores to cut costs and boost earnings.