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Domino's Pizza (ASX: DMP)





Business profile

  • Domino's Pizza Enterprises holds the master franchise agreement for the Domino's Pizza brand in ANZ, Japan, France, Belgium, and the Netherlands. It also has a joint venture agreement in place for Germany.

  • Australia is the third-largest market for Domino's outside the US, UK and Mexico.

  • Domino's is a franchiser = capital requirements should be limited = royalty payments it receives in the future should continue to be paid as franked dividends.


  • debt: $621 million

  • shareholders equity: $400 million

  • debt-to-equity ratio: 1.55

  • lease liability: $734 million


  • cash conversion ratio: more than 100%

  • net debt: $514 million

  • net leverage ratio is 1.8

  • return on capital employed: 20%

  • huge intangible asset from acquisitions = taken on debt to fund its acquisitions


Total of 2,596 stores:

  1. Europe: 1,123 stores

  2. ANZ: 831 stores

  3. Japan: 642 stores


Highlights for the results

  • global food sales: $1.58 billion, up 10%

  • HY EBITDA: $151 million, up 10%

  • online sales: increasing faster at 18.8% to $1.11 billion (almost 60% of its sale)

  • free cash flow: 59%


201020

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