Domino’s Pizza Investor Relations Material

Domino’s operates the world's largest pizza franchise, and is considered one of the pioneers in home delivery. Domino’s was one of the most resilient restaurant chains during the pandemic, and their ventures in digital innovations - including apps, smart-speaker features, and delivery robots - have given them an edge in the home delivery space.

Domino’s operates over 19.000 restaurants worldwide and continuously opens more than 500 new restaurants yearly. Out of those 19.000, 98 percent are franchised. Since 2006, the number of stores has increased by a whopping 125 percent.

The pizza giant operates this franchise model by issuing Master Franchise Agreements and collects fees and royalties based on sales percentages. They also dominate the supply chains of the franchisees, selling over 240 products ranging from toppings, sauce, and dough to the specific equipment needed. These supply chain activities are actually where Domino’s makes most of their money - amounting to around 60 percent of total sales. Their supply chain network enables them to minimize operating costs and maximize profits both for their franchisees and for Domino’s.

Other notable businesses deploying the franchise model are McDonald's, O’Reilly Automotive and Alimentation Couche-Tard.