U.S.-listed franchisor Domino’s Pizza has a 15.7% stake in DPC
The world's largest pizza chain, Domino's Pizza, stretches out 18,800 locations across 90 different global markets. A further sign of international success is that the company's opperator in China DPC Dash is applying to go public in Hong Kong. Domino's has a 15.7% share in DPC Dash. The operator stated in the filing that it is Domino’s Pizza’s “exclusive master franchisee” in mainland China, Hong Kong and Macao. With plans to open 120 new stores this year, DPC already directly operates 485 stores in 10 cities on the mainland most of which are in Beijing and Shanghai.
Domino's Pizza also recently appointed their U.S. COO and President Russell Weiner to succeed Ritch Allison as the company's next CEO, effective May 1, 2022. Though COVID has had a notable affect on the industry, Domino's has efficiencies from its integrated delivery system that third parties cannot replicate. The company also has excellent profitability and fairly consistent market share gains. Domino’s U.S. and international retail sales have each grown by 10% compounded annually over the past 10 years.
As a quick service restaurant, Domino's resilience in China exemplifies a growing middle class in the mainland, as well as a sign of diverse investing on behalf of Domino's. Domino’s is well positioned to be the leading pizza delivery brand in any international market that they enter. Their operations in China will remain a stable investment.