DPC Dash Ltd - Domino’s Pizza China (1405.HK), Domino's Pizza's exclusive master franchisee in the China Mainland, the Hong Kong Special Administrative Region of China, and the Macau Special Administrative Region of China, recently reported its first-half 2025 results. The company has distinguished itself in China's intensely competitive Western fast-food landscape, setting a new benchmark for strong performance while maintaining operational efficiency and strengthening market competitiveness.

Strong Financial Performance Reflects Multiple Competitive Advantages

According to Frost & Sullivan, DPC Dash became China's second-largest pizza brand by 2024 sales revenue. The company has not rested on its laurels, with 2025 first-half results demonstrating exceptional performance across multiple metrics, achieving historical highs while sustaining growth momentum. Revenue has maintained double-digit growth for consecutive years, reaching RMB2.59 billion, up 27.0% year-over-year. After achieving its first full-year positive reported and adjusted net profit in 2024, the company posted dramatic net profit growth of 504.4% in the first half of 2025 to RMB65.92 million, while adjusted net profit surged 79.6% to RMB91.42 million. The simultaneous achievement of revenue growth and profit expansion amid market volatility underscores the company's growth resilience.

DPC Dash has rapidly expanded its store network in recent years. Since the current management team began its tenure in the third quarter of 2017, the company has effectively implemented its "go-deeper, go-broader" store expansion strategy, growing from approximately 100 stores to 1,198 stores across 48 mainland Chinese cities. Since entering the Central and Western China market in December 2022, the company has established 100 stores within just two and a half years. DPC Dash’s expansion strategy emphasizes quality over speed. The company has established rigorous site evaluation standards to ensure each new location meets the fundamentals required for long-term profitability, a disciplined approach that has maintained its store closure rate well below industry benchmarks. Store quality is reflected not merely in quantity but in sales performance that leads the global Domino's system. New market entries have been enthusiastically received by local consumers, with long queues frequently observed at newly opened Domino’s Pizza stores. The first store in Shenyang broke the previous annual sales record of over RMB 31 million set by the Xiamen SM Phase III store within just 198 days of operation. In August 2025, the first Handan store shattered global Domino's first-day sales records with over RMB540,000 in sales and more than 6,000 orders. DPC Dash currently occupies 48 of the top 50 positions for first 30-day sales among the Domino's network of over 21,500 stores worldwide. DPC Dash has demonstrated remarkable business resilience. Even under the twin pressures of new store openings and market volatility, the company achieved positive same-store sales growth (SSSG), when adjusting for the impact of high-performing stores entering their SSSG cycles, a testament to its superior operational discipline.

The SIAL "2025 Pizza New Innovation White Paper" identifies surging demand for delivery as a primary driver of robust growth in China's pizza market. In 2022, China's online pizza market share surpassed in-store sales for the first time, reaching 58.1%, with online market share expected to continue rising in the coming years. DPC Dash has been providing reliable delivery services for years, offering a "30-minute delivery guarantee with free pizza vouchers for late deliveries” service commitment, achieving 94% overall on-time delivery rates during the first half of 2025, which establishes a foundation for future online market expansion.

Multi-Pronged Strengths in Product and Operations Deepen Consumer Experience

Leveraging Domino's global brand assets and local supply chain management capabilities, DPC Dash has progressively achieved operational efficiency while providing consumers with delicious pizza at value and diverse dining experiences.

In the QSR industry, taste represents one of the primary competitive advantages. DPC Dash maintains classic, bestselling Domino’s products on its menu while preserving pricing consistency over the years, ensuring consumers receive familiar tastes and experiences even after an extended period since their last visit, creating strong brand familiarity and consumer trust. Meanwhile, DPC Dash continuously embraces new trends and product innovation, actively exploring flavor and ingredient combinations while introducing crust diversification. In the first half of 2025, the company further enriched its popular durian pizza and volcano crust offerings, introducing Dubai Chocolate Musang King Durian Pizza and Cocoa Volcano Crust, among others, while adding new combinations including Tuscany-Inspired Cheese Salmon Pizza and Stuffed Crust (Cocoa & Cheese). DPC Dash offers industry-leading crust selections, paired with a highly customizable WeChat Mini-Program ordering system that enables over 400 combinations. This not only delivers customers the joy of culinary exploration but also precisely addresses personal taste preferences, demonstrating deep category expertise and nuanced consumer insights.

Affordable Western fast-food brands are now accelerating market penetration, reaching more lower-tier market consumption scenarios. The SIAL "2025 Pizza New Innovation White Paper" projects that an estimated 15,000 new stores will be expected to open in China’s lower-tier markets between 2025 and 2027. Building on product diversification, DPC Dash’s pricing strategy maintains competitive advantages. The menu remains streamlined and maintains value, classic, and indulgent categories to serve different customer segments. For sales channels, DPC Dash leverages third-party delivery platforms for limited-time and selective sales offerings to preserve its pricing advantage. The company also builds the membership ecosystem through multiple channels, offering free pizzas and snacks through mini-games and providing substantial value through up to 10% points redemption rates, while incorporating gamification elements like points lotteries and membership rewards to enhance member engagement.

To better reach younger consumers, DPC Dash has actively enhanced its promotional approach. Brand marketing has diversified toward cross-industry collaborations and social media platform branding. DPC Dash has cultivated strategic IP collaborations with Tencent's video game Ash Echoes and Hello Kitty last year and NetEase's video game Egg Party and Snoopy this year, covering gaming and cultural IP beloved by young consumers, speaking directly to Gen Z culture and values, strengthening emotional connections and establishing cultural resonance beyond transactions. DPC Dash also launched on Douyin and other short video and live streaming platforms last year, expanding its reach through social media, strengthening and reinforcing its youthful, digital brand image.

In the first half of 2025, DPC Dash’s loyalty program accumulated 30.1 million members, representing 55.2% year-over-year growth as one of the most impressive strategic achievements of the half-year performance. Revenue contributed by loyalty members as a percentage of total revenue increased from 63.6% to 66%, with both membership scale and stickiness rising, expanding the user base while deepening engagement and loyalty. The consumer base has become more diverse, bringing delicious pizza to more consumers.

Long-term Potential Through Balanced Growth

DPC Dash’s first-half performance demonstrates a rare balance of healthy growth and profitability, with the brand continuing to build sustainable competitive advantages that establish a solid foundation for maintaining growth and capturing market share even amidst an ever-changing consumption environment.

Through delicious, high-value offerings, efficient deliveries, and trusted brand strength alongside solid operational foundations, DPC Dash has distinguished itself in the rapidly expanding Western QSR sector.

While scaling operations continuously, the company has maintained an unwavering focus on store-level model health and operational efficiency, underpinning steady improvements in overall profitability metrics. This development model, which combines explosive growth with resilience, positions DPC Dash as a compelling long-term growth story in the Western QSR industry, demonstrating substantial potential to weather cycles and create sustained value.