DP Poland PLC
Analysts
Company Descriptions
DP Poland is the owner of the Domino's Pizza franchises for Poland and Croatia, and operates both owned and sub-franchised stores across both countries. The group is totally focussed on quality of product and speed of delivery. DP Poland acquired the Dominium brand of pizza restaurants which have all now been rebranded as Domino's.
Investment Summary
Key to DP Poland's performance is the ongoing push to increase order counts per store, reduce delivery times and thereby drive repeat custom and "store level profitability".
Once this can be demonstrated, the group aims to expand rapidly through the sub-franchise model, where entrepreneurs borrow money to establish new Domino's locations - these additional stores increase coverage of the population and geography, and reduce delivery times to customers. These dynamics should allow the group to expand very rapidly without requirement for additional working capital...with rising margins and fast-growing revenue, we believe this could combine to create a very attractive equity proposition.
