10-K: Domino's Pizza Reports Strong Global Growth in 2024, Driven by Franchise Expansion and Digital Sales

• Domino's Pizza, the world's largest pizza company, reported its Form 10-K for the fiscal year ended December 29, 2024.
• The company operates over 21,300 locations in over 90 markets globally.
• Approximately 99% of Domino's global stores are owned and operated by independent franchisees.
• The U.S. QSR pizza category grew from $37.6 billion in 2019 to $42.1 billion in 2024.
• Domino's is the dollar market share leader for delivery and carryout among pizza QSRs in the U.S.
• Global retail sales, excluding foreign currency impact, increased by 5.9% compared to 2023.
• U.S. retail sales increased 5.3%, and international retail sales, excluding foreign currency impact, increased 6.5%.
• Same store sales increased 3.2% in U.S. stores and 1.6% in international stores (excluding foreign currency impact).
• The company achieved global net store growth of 775 stores, including 160 in the U.S. and 615 internationally.
• Income from operations increased 7.3% in 2024.
• The company transitioned its stock listing from the New York Stock Exchange (NYSE) to The Nasdaq Stock Market LLC (Nasdaq) on January 2, 2025.
• The Board of Directors declared a quarterly dividend of $1.74 per common share on February 19, 2025.
• As of December 29, 2024, $814.3 million remained under the share repurchase authorization.
• The company is subject to risks related to competition, food and labor costs, supply chain disruptions, and international operations.
• The company is also subject to risks related to cybersecurity, data privacy, and government regulations.

Score: 7

Explanation: The document presents a generally positive outlook with strong growth metrics, but also acknowledges several risks and challenges. The sentiment is moderately positive.

• Strong brand equity and market share in the U.S. and internationally.
• Proven business model generating franchise royalties, supply chain revenues, and retail sales.
• Technological innovation, with more than 85% of U.S. retail sales from digital channels.
• Internal dough manufacturing and supply chain system enhancing product quality and consistency.
• Commitment to corporate stewardship, including environmental sustainability and philanthropic efforts.
• The company has a goal to achieve net zero carbon emissions by 2050.
• The Domino's system has contributed approximately $143 million to St. Jude since 2004, including raising approximately $18 million in 2024.

• Highly competitive QSR pizza category and food service market.
• Increases in food, labor, and other costs impacting profitability.
• Potential for product contamination, food-borne illness, or food tampering affecting reputation.
• International operations subject to additional risks, including economic and political instability.
• Reliance on franchisees, with potential harm from actions outside of the company's control.
• Risk of cyber incidents and data breaches.
• Substantial indebtedness could adversely affect the business.

• Intense competition in the QSR pizza category and food service market.
• Failure to successfully implement growth strategy, including new store openings.
• Increases in food, labor, and other costs, labor shortages, or negative economic conditions.
• Shortages, interruptions, or disruptions in the supply or delivery of fresh food products and store equipment.
• Changes in consumer preferences and perceptions.
• Reports of product contamination, food-borne illness, or food tampering.
• International operations subject to additional risks, including economic and political instability.
• Dependence on the success of franchisees.
• Failure to manage the impact of social media.
• Loss of key employees or inability to attract and retain new qualified employees.
• Inability to adequately protect intellectual property.
• Occurrence of cyber incidents or a deficiency in cybersecurity.
• Dependence on the performance of suppliers, aggregators, and other third parties.
• Inability to generate sufficient cash flow to satisfy debt service obligations.
• Restrictive terms of securitized debt financing.
• Environmental, social, and governance matters impacting business and reputation.
• Fluctuations in value of the U.S. dollar in relation to other currencies.
• Annual and quarterly financial results subject to significant fluctuations.

The company plans to continue expanding U.S. and international operations, enhancing online ordering and digital marketing, and investing in technology and supply chain productivity initiatives.

• At Dominos, we believe we have a proven business model for success that has historically driven strong returns for our shareholders.
• Our Hungry for MORE strategy aims to generate MORE sales, MORE stores and MORE profits.

The U.S. QSR pizza category is large and fragmented, with the four industry leaders accounting for approximately 60% of U.S. pizza delivery and 52% of the U.S. carryout segment. International pizza delivery is relatively underdeveloped, with only Domino's and two other competitors having a significant global presence.

• Domino's competes with regional and independent companies as well as national chains like Pizza Hut, Papa Johns, and Little Caesars Pizza in the U.S.
• Internationally, Domino's competes primarily with Pizza Hut, Papa Johns and country-specific national, regional and local pizzerias.
• Domino's is the number one pizza company in the U.S. with approximately 23% market share at pizza QSRs, based on consumer spending data for the year ending December 2024.
• Within the pizza QSR segment, Domino's is number one in delivery with approximately 32% share of delivery dollars, and is also leading in carryout with approximately 19% share of carryout/drive-thru QSR pizza consumer spending (Source: Circana, CREST).

• Shareholders: The company has historically returned cash to shareholders through dividend payments and share repurchases.
• Franchisees: Domino's business model can yield strong returns for franchise owners.
• Employees: The company is committed to providing competitive pay and benefits to attract and retain great talent.
• Communities: The company has a long history of caring for the communities it serves, including supporting St. Jude Children's Research Hospital.

• The company intends to roll out redesigned e-commerce platforms across the U.S. system in 2025.
• The company plans to continue investing in supply chain productivity initiatives in the future.
• The company expects to refinance the 2018 7.5-Year Notes and the 2015 Ten-Year Notes prior to the anticipated repayment date.
• The company will continue to focus on growing its global store count.
• The company will continue to highlight important stewardship topics with consumers, including efforts to promote the ability to recycle pizza boxes throughout the U.S.

• The company is a party to lawsuits, revenue agent reviews by taxing authorities and administrative proceedings in the ordinary course of business which include, without limitation, workers compensation, general liability, automobile and franchisee claims.
• The company is also subject to suits related to employment practices.

• 1960: Domino's has been selling quality, affordable food to customers since 1960.
• 1965: The company became Domino's Pizza in 1965.
• 1967: The first franchised store opened in 1967.
• December 21, 1998: Date of Lease Agreement between Dominos Farms Office Park Limited Partnership and Dominos, Inc.
• February 1, 1999: Date of Trust Agreement between the Company and Fidelity Management Trust Company.
• March 15, 2012: Date of Amended and Restated Base Indenture among Dominos Pizza Master Issuer LLC, et al., and Citibank, N.A.
• September 16, 2013: Date of First Supplement to the Amended and Restated Base Indenture.
• October 21, 2015: Date of Series 2015-1 Supplement to the Amended and Restated Base Indenture.
• October 21, 2015: Completion of the 2015 Recapitalization.
• July 24, 2017: Completion of the 2017 Recapitalization.
• April 24, 2018: Completion of the 2018 Recapitalization.
• November 19, 2019: Completion of the 2019 Recapitalization.
• April 16, 2021: Completion of the 2021 Recapitalization.
• September 16, 2022: Certain subsidiaries issued a variable funding note facility which allows for advances of up to $120.0 million of Series 2022-1 Variable Funding Senior Secured Notes, Class A-1 Notes.
• August 21, 2023: Master franchisee that owned and operated Domino's Pizza stores in Russia announced its intent to file for bankruptcy.
• October 8, 2024: Dominos Pizza Deferred Compensation Plan Amended and Restated Effective.
• December 29, 2024: End of the 2024 fiscal year.
• December 31, 2024: Coca-Cola contract expires on December 31, 2030 or at such time as a minimum number of cases of Coca-Cola products are purchased by Dominos, whichever occurs later.
• January 2, 2025: Dominos Pizza, Inc.'s common stock began trading on The Nasdaq Stock Market LLC (Nasdaq) under the ticker symbol DPZ.
• February 1, 2025: Tariffs announced on imports to the United States from Canada and Mexico.
• February 17, 2025: Dominos Pizza, Inc. had 34,296,712 shares of common stock outstanding.
• February 19, 2025: Board of Directors declared a quarterly dividend of $1.74 per common share.
• April 23, 2025: Annual meeting of shareholders.