Domino’s Pizza ($DPZ) has one of the strangest success stories of the last decade. For years, American customers likened Domino’s pies to cardboard, and the company’s sales fell into a steep decline as a result. Instead of merely brushing off these claims, the company owned up to their garbage pizza and changed the recipe. Since this turnaround, sales at the company’s franchise locations are on the up and up, and so is their stock.
Domino’s isn’t just an American company, either. The company has franchisees in numerous international territories, including over 1,000 stores in India, 570-plus locations in Australia, and more than 850 Domino’s scattered around the United Kingdom. These locations pay Domino’s Pizza’s American headquarters a percentage (or royalty) of their sales in exchange for using the company’s brand, products, recipes and more. While they part with a sizable chunk of their earnings, the stores still make a killing — some more than their stateside counterparts.
Now, the owner of numerous international Domino’s franchises is about to offer something new on their menu: their very own stock. This might sound strange, as $DPZ already exists on the New York Stock Exchange. Yet the company’s IPO actually marks the fifth time a Domino’s-related stock hit an international exchange.
But is it worth investing in? Let’s take a look.
Domino’s franchisees have their own stocks on several exchanges.
Domino’s Pizza Group owns franchises in the UK, Germany, Italy, and Switzerland, and trades as $DOM on the London Stock Exchange. Domino’s Pizza Enterprises ($DMP on the Australian Securities Exchange) owns more than 1,900 locations in Australia, New Zealand, France, Germany, and Japan, among other countries. There are several other major Domino’s franchise companies around the world, including Jubilant FoodWorks ($533155), a major franchisee in India.
DP Eurasia, another major franchisee, wants to go public.
DP Eurasia owns hundreds of Domino’s franchises in Turkey, Russia, Azerbaijan, and Georgia. The company plans on going public on the London Stock Exchange and selling stock sometime within the next month. DP is currently owned by private equity company (Turkven) and plans on raising £20 million ($25.7 million) to open more locations in Russia, where they’re the third-largest pizza chain in the country. The company currently makes $184.3 million in revenue from their existing locations. By expending further into Russia and other territories, they stand to make a great deal more.
Some Domino’s stocks do really well.
$DPZ and $DMP are up 655% and 520% in the last five years, respectively. $DOM is up since their IPO, but the stock declined in the last year-plus (as has $DMP). The original Domino’s stock, $DPZ, is up 37.03% since the start of 2017, faring better than the market average and even Apple ($AAPL).
Should you invest in DP Eurasia?
The company isn’t public yet, nor do we have more information on their prospective growth. While more stores means more revenue for the company, we don’t know how it will translate to their profitability. We also have no idea how the Eurasian Domino’s market operates compared to their stateside counterpart.
If you want to invest in Domino’s, consider looking at $DPZ. Sure, it’s already worth $217 and change and you already missed out on its massive growth from the last decade. Yet the company can still grow and maximize earnings from their existing franchises. Just be sure to do your research before you invest.
If Domino’s isn’t your bag, you could always look at the many other ways to invest in tasty, delicious pizza.