DPZ 2019 Franchise Disclosure Document Review for Dominos

By Mark Kalinowski Published on June 17, 2019 at 12:00 AM

Not too long ago, Domino’s (DPZ; Buy) filed its 600+ page Franchise Disclosure Document (FDD) for 2019. In this report, we cite some of the highlights from that document following our review of it, including our review of it in comparison to last year’s Franchise Disclosure Document. For example, in 2018, the Advertising Fund spent $401,643,843. This was an +11.1% increase over what the Advertising Fund spend in 2017. On top of this, during 2018, the Advertising Fund spent 85.6% of this on Media Placement (or approximately $343,807,130), versus an 84.27% rate during 2017 (or approximately $304,044,399). In dollar terms, this was an increase of +13.1%. We maintain our Buy rating on DPZ and note the following:

DPZ The Night King Commands Us to Update Our Forecasts Ahead of the Q1 Release

By Mark Kalinowski Published on April 15, 2019 at 12:00 AM

Ahead of Domino’s (DPZ; Buy) first quarter earnings release scheduled for before the market open on Wednesday, April 24th, we raise our Q1 U.S. (blended) samestore sales forecast by +160 basis points, to +4.5%. Based on our checks, we believe that Domino’s latest ad campaign — centered around “Points for Pies” — has been successful. Consumers apparently have responded well to the aspect of this that points can be earned from “eating any pizza you love, from anywhere. Yep, even if it’s not Domino’s.” Of course, many of the things that Domino’s has done well for years — an improved core product, technological excellence, the “Piece of the Pie Rewards” loyalty program, etc. — are all playing an integrated role in what appears to have been another successful quarter for the brand.

Tidbits re MCD, DNKN… and more DNKN

By Mark Kalinowski Published on March 21, 2019 at 12:00 AM

We briefly note the following tidbits regarding McDonald’s (MCD; Buy), Dunkin’ (owned by Dunkin’ Brands Group [DNKN; Neutral]), and more Dunkin’: