A day after Domino’s Pizza went public in 2004, the Wall Street Journal published a headline, noting: “Domino's Pizza Inc. served up a cold IPO yesterday, trading flat in its market debut. The initial public offering of shares in the nation's largest pizza-delivery company closed on the New York Stock Exchange at $13.50, or 3.6% below its offering price of $14 apiece.”
Rock - thanks for the question. Domino's still makes money off the master franchise agreements, albeit at a slightly lower rate than in the U.S. The company earns roughly 3% of franchisee revenue as a franchise royalty/fee which are paid by master franchisees. It seems they have a very long runway to continue growing abroad as one of only two at-scale pizza companies in the world.
Fantastic summary, thanks.
I had a hunch that this may be a good business after Ackman recently bought a big chunk.
A question on intl. growth: Isn't this already harvested by the master franchises they gave out, like Dominos UK?
Rock - thanks for the question. Domino's still makes money off the master franchise agreements, albeit at a slightly lower rate than in the U.S. The company earns roughly 3% of franchisee revenue as a franchise royalty/fee which are paid by master franchisees. It seems they have a very long runway to continue growing abroad as one of only two at-scale pizza companies in the world.