Specialist
Former Head at Domino's Pizza Group plc
Agenda
- UK market share dynamics across major players, including Domino’s (LON: DOM) and Papa John’s (NASDAQ: PZZA)
- Evolution of the franchise dispute
- Domino’s expansion strategy, including the roll-out of directly owned restaurants
- EBITDA drivers at restaurant level
Questions
1.
Could you outline the shifts in market share you are observing in the UK pizza industry?
2.
What do you think would be the best long-term strategy for Domino’s to partner up with aggregators?
3.
Do you think Domino’s has the current capabilities to operate as an aggregator?
4.
What percentage of Domino’s traditional online customers would you estimate now go via aggregators?
5.
How long can Domino’s stave off aggregators? At what point do you think it would have to team up?
6.
How could Domino’s Pizza Group stimulate like-for-like growth in the UK market? What impact could the new formats, particularly in London, and the attempts to increase collection have on like-for-likes?
7.
How does carry-out impact EBITDA on a store level?
8.
Do you think that DPG can roll out delivery charges, given that it is relatively uncommon in the UK market?
9.
Why can’t the pizza business charge for delivery when other businesses in the takeaway market can?
10.
Is it viable for Domino’s to fulfil this carry-out and perhaps shift towards 55/45 delivery to carry-out?
11.
How competitive is Domino’s pricing at the moment vs Papa John’s and Pizza Hut?
12.
Do you think the current pricing strategy is sustainable with the price premium and the mediums rather than large pizzas?
13.
Is there any component of Domino’s Pizza Group’s cost base that could suggest why the company is not able to reduce pricing or change the model towards GBP 19.99 for two large pizzas vs the competition?
14.
Could you explain the core elements of the franchisee dispute for Domino’s?
15.
Do you think that Domino’s could ever consider not passing on price increases in supply to the franchisees? Is that a possible scenario?
16.
What would be a realistic profit gain that could be passed on to the franchisees vs what could be absorbed by Domino’s Pizza Group?
17.
Domino’s is splitting territories, which affects the short-term growth of individual franchisees and individual stores. Do you think that splitting territories is the right strategy?
18.
believe Domino’s is targeting around 1,600 restaurants in the UK. Do you think that is reasonable?
19.
Given the immediate short-term impact of the splitting of territories, do you think that Domino’s Pizza Group would offer royalty concessions in light of a split in order to help franchisees with top line?
20.
Do you think that the change in CEO could help move the franchisee disputes along?
21.
You mentioned the need to reassess the expectations of the franchisee’s profitability. I believe EBITDA level on a store basis is around 10% on average. Are you suggesting that 10% will have to come down?
22.
Do you have any final comments to share on Domino’s Pizza Group and your outlook?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary one week trial.
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited