DPC Dash Announces Key Milestones and Shareholder Update Regarding Domino's Pizza
HONG KONG, Oct. 17, 2024 /PRNewswire/ -- DPC Dash – Domino's Pizza China ("DPC Dash" or the "Company") (1405.HK), the exclusive master franchisee for Domino's Pizza in the China Mainland, the Hong Kong Special Administrative Region of China, and the Macau Special Administrative Region of China, continues to drive robust growth in the second half of 2024 and provides an update on the shareholder base, involving a subsidiary of Domino's Pizza, Inc. ("Domino's Pizza" or "DPZ") (NYSE:DPZ), the largest pizza company in the world.
DPC Dash reported a positive net profit after tax and adjusted net profit after tax for the first half of 2024, demonstrating effective management strategies amidst challenging macroeconomic conditions. Its store count reached 978 during the third quarter of 2024, with plans to surpass 1,000 by mid-November. The third quarter marked the 29th consecutive quarter of positive same-store sales growth for DPC Dash, underscoring its commitment to quality products and customer satisfaction. DPC Dash has secured 28 of the top 30 positions for first 30-day sales among Domino's global network of over 21,000 stores. This achievement highlights the strength of the Domino's brand and DPC Dash's operational expertise. Furthermore, its total loyalty program membership has surged to 21.7 million, reflecting increased customer engagement through tailored rewards and enhanced experiences.
Domino's Pizza LLC, an indirect wholly-owned subsidiary of Domino's Pizza, has recently agreed to allocate 10,000,000 of DPC Dash's shares, or 7.66% of DPC Dash's total issued share capital as of October 17, 2024, to a group of institutional investors through off-market block trades. Following this share transfer, Domino's Pizza LLC retains 8,101,019 shares accounting for 6.21% of DPC Dash's total issued share capital. Domino's Pizza LLC has committed to a lock-up period of 90 days from the closing date of the share sale for its remaining shares. The enduring relationship between DPC Dash and DPZ remains robust, rooted in their long-term Master Franchise Agreement (MFA) signed in June 2017. This relationship is expected to continue to be a cornerstone of DPC Dash's growth strategy.
"We are thrilled with the performance and growth of the DPC Dash business," said Russell Weiner, Domino's Pizza Chief Executive Officer. "Our equity investment has been and continues to be a strong investment for Domino's, but more importantly, it provided DPC Dash with growth capital when needed and also helped DPC Dash's management team stay focused on driving their business, which they have done incredibly well. With DPC Dash's successful IPO, its nearing the 1,000-store milestone, and its profitability achievements in the first half of 2024, we feel it is the appropriate time to begin partially exiting our equity investment in the business. DPC Dash and the China market continue to be critical to Domino's growth and we look forward to continuing to work with them for years to come."
Aileen Wang, Chief Executive Officer of DPC Dash added, "We are excited about our sustained strong performance and the significant milestones we've reached. Domino's Pizza has been an exceptional organization to work with, and we deeply appreciate its investment, which has laid the groundwork for our growth journey. We view this liquidity event positively, as it will enhance our trading liquidity and attract world-class, long-term investors, thus diversifying our institutional shareholder base. We look forward to continuing our relationship with Domino's Pizza as we further develop this remarkable brand."
About DPC Dash Ltd.
DPC Dash is Domino's Pizza's exclusive master franchisee in the China mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China. Domino's Pizza, Inc., DPC Dash's global franchisor, is one of the most widely-recognized global consumer brands and the world's largest pizza company. Led by a seasoned and visionary management team, DPC Dash is a market leader that differentiates from competitors with, among others, a continually innovated and localized pizza-focused menu, unique expertise and leadership in delivery, technology focus and scalable and replicable store economic model. DPC Dash operates more than 978 stores in 33 cities in China as of September 30, 2024.
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About Domino's Pizza®
Founded in 1960, Domino's Pizza is the largest pizza company in the world, with a significant business in both delivery and carryout pizza. It ranks among the world's top public restaurant brands with a global enterprise of more than 21,000 stores in over 90 markets. Domino's had global retail sales of over $18.9 billion for the trailing four quarters ended September 8, 2024. Its system is comprised of independent franchise owners who accounted for 99% of Domino's stores as of the end of the third quarter of 2024. In the U.S., Domino's generated more than 85% of U.S. retail sales in 2023 via digital channels and has developed several innovative ordering platforms including seven unique ways to order Domino's.
CONTACTS
DPC Dash Ltd Investor Relations:
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SOURCE DPC Dash Ltd