Domino's Pizza has completed its transition to a fully franchised model in Brazil, transferring ownership of its final 22 company-operated stores to franchise partners.
The move eliminates the company's direct capital exposure in the Latin American market, shifting the operational and financial burden of store maintenance and expansion to local operators.
The restructuring is a direct response to Brazil's persistently high cost of capital.
With the central bank's benchmark Selic rate hovering near 14 percent, the expense of financing company-owned real estate and equipment has become prohibitive.
By moving to a franchise-only structure, Domino's converts fixed capital costs into variable royalty income, insulating its balance sheet from the volatility of local borrowing costs.
This strategic retreat from asset-heavy operations comes as broader financial stress mounts across the Brazilian economy.