HONG KONG, Oct 18, 2024 - (ACN Newswire) - As recent economic stimulus measures by the government of China boost consumer confidence, and propel a rally in domestic stock markets, consumption stocks have been leading the surge, closing strong in the third quarter of 2024 strong. DPC Dash – Domino’s Pizza China, ("DPC Dash" or the "Company") (1405.HK), 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, has further optimized shareholder structure to deliver long-term and significant value to shareholders.

In the third quarter of 2024, the Company announced its inclusion in the Hong Kong Hang Seng Composite Index and the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect Programs, underscoring its market credibility and growth potential. The inclusion in both a major index and stock connect programs offered more liquidity. As of October 15, 2024, the company’s stock price has surged over 60% since its IPO on March 28, 2023, significantly outperforming the Hang Seng Composite Index during the same period[i]. In order to further optimize shareholder structure and enhance the Company’s trading liquidity, Domino’s Pizza LLC, an indirect wholly-owned subsidiary of Domino’s Pizza, recently announced an agreement to sell an aggregate of 10,000,000 of the Company’s shares, or 7.66% of its total issued share capital as of October 17, 2024, to purchasers including institutional investors through off-market block trades. Following this share sale, Domino’s Pizza LLC retains 6.21% of total issued share capital with a lock-up period of 90 days for its remaining shares. The enduring relationship between DPC Dash and DPZ remains robust. The allocation is an opportunity for DPC Dash to further improve liquidity and bring new dynamics to its shareholder structure. Notable international banks have rated DPC Dash as “Buy” or “Outperform”, showing confidence in the company’s fundamentals and stock performance.

DPC Dash continues to demonstrate its market prowess with strategic growth, operational efficiency and customer satisfaction. The Company’s remarkable success can be largely attributed to its effective 4D strategy of Development, Delicious pizza at value, Delivery, and Digital. This comprehensive approach has enabled the company to serve high-quality, value-for-money pizzas to a steadily growing customer base. From 2021 to 2023, DPC Dash realized a Compounded Annual Growth Rate (CAGR) of 37.6% in revenue. In the first half of 2024, revenue reached RMB2.04 billion while both reported and adjusted net profit after tax turned positive for the first time.

The Company’s “Go Deeper, Go Broader” strategy has been instrumental in its growth. As of September 30, 2024, DPC Dash operates 978 stores across 33 cities, reflecting a robust expansion with 210 new stores opened year-to-date. The combined total of net new stores added this year, stores currently under construction, and stores with signed agreements has reached approximately 100% of the full-year opening target for 2024. It is confident in maintaining this strong expansion dynamic, with plans to open its 1000th store in the fourth quarter of 2024 and open 300 to 350 new stores annually in 2025 and 2026. The store network expansion is supported by strong performance metrics, including holding 28 of the top 30 positions for first 30-day sales among Domino’s global network of over 21,000 stores as of the end of the third quarter of 2024. Since the current management took the helm in the third quarter of 2017, DPC Dash has since achieved 29 consecutive quarters of positive same-store sales growth (SSSG) despite market and industrial turbulence. Meanwhile, the company’s digital initiatives played a crucial role in driving customer engagement and loyalty. The company’s loyalty program boasted 21.7 million members as of September 2024, with 11 million new customers placing their first orders in the past 12 months with Domino’s Pizza China.

Looking ahead, DPC Dash remains focused on its expansion plans and operational enhancements, aiming for sustainable, profitable growth in China’s vast pizza market through continual innovation and optimization. The company’s resilient business model and strategic initiatives position it well for continued success in this competitive industry. The company will continue to strengthen its market position and add value to consumers by constantly enhancing product quality, service level, and customer experience.

[i] Based on closed stock price of DPC Dash and HSCI of March 28, 2023 and October 15, 2024.