Domino’s Pizza China operator apply for Hong Kong listing

BEIJING– The operator of Domino’s Pizza shops in China, DPC Dash, used Monday to go public on the Hong Kong stock market, according to an online filing.

U.S.-listed franchisor Domino’s Pizza has a 15.7% stake in DPC since the filing date through wholly-owned entities, the file revealed. No one entity has bulk ownership.

Much of the essential details on rates and timing were edited in the openly offered file, as the listing has yet to happen. Bank of America Securities is the sole sponsor of the listing, according to the application.

DPC stated in the filing it is Domino’s Pizza’s “exclusive master franchisee” in mainland China, Hong Kong and Macao, with 485 straight ran shops in 10 cities on the mainland– primarily in Beijing andShanghai The business stated it prepares to open 120 brand-new shops this year.

Same shop sales grew by 18.7% in2021 But the business has actually run at a growing bottom line over the last 3 years, which the filing credited to investing in brand-new shops, main kitchen areas, marketing and personnel training.

New shops take about one to 3 months to recover cost, with a common money financial investment repayment duration of 3 to 4 years, the filing stated, keeping in mind much shorter times for brand-new shops in Beijing and Shanghai.

In 2021, more than 73% of earnings was created by shipment orders, the filing stated. The business stated it employs devoted motorists– a personnel of 5,375 in 2021– to satisfy a shipment pledge of 30 minutes.

DPC alerted about many service dangers, consisting of that of Covid- associated limitations.

Yum China, which runs Pizza Hut in China, alerted on March 14 that same-store sales fell by about 20% year-on-year for the very first 2 weeks of the month due toCovid That was prior to the most recent Shanghai lockdown revealed today.