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:
Read More
By Mark Kalinowski
Published on June 13, 2019 at 12:00 AM
Not too long ago, the Dunkin’ concept owned and franchised by Dunkin’ Brands Group (DNKN; Neutral) filed its 700+ 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, we note that the average cost of goods sold for a Dunkin’ unit in the continental U.S. for the 12 months ended October 31, 2018 was 26.9% of sales (please keep in mind that all Dunkin’ units are franchised). The average labor cost was 27.8% of sales. These figures were up year-over-year by ten basis points and 20 basis points, respectively. Also, the average freestanding Dunkin’ unit in the continental U.S. generated average sales of $1,299,700 (for the 12-month period ending October 27, 2018) for units with a drive-thru, and average sales of $1,032,159 (for the same time period) for units lacking a drive-thru. The year-ago averages from the 2018 FDD were $1,299,922 and $1,041,001, respectively. We maintain our Neutral rating on DNKN and note the following:
Read More
By Mark Kalinowski
Published on June 11, 2019 at 12:00 AM
Not too long ago, Wendy’s (WEN; Neutral) filed its 500+ 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, we note that the median U.S. company-owned restaurant generated $1,868,693 in revenue last year (versus $1,830,565 in 2017), and that the median U.S. franchised restaurant generated $1,548,551 in revenue last year (versus $1,541,069 in 2017). The best-performing restaurant in the Wendy’s U.S. system overall — generating $4,714,549 in 2018 sales — is in Chicago. Our report also contains data regarding the sales lifts provided by the company’s Image Activation initiative, broken down by type of design. For franchised restaurants that underwent a Refresh — the most frequently chosen Image Activation format — that was completed during 2018, the median gross sales lift cited in the FDD is +4.6%. We reiterate our Neutral rating on WEN and note the following:
Read More
