Dash stock lockup10/30/2023 That data estimates China’s pizza market was worth 30.5 billion yuan ($4.8 billion) last year, and is expected to double to 62.3 billion yuan in 2025. That will deal a major blow to DPC Dash, which counts Shanghai as its largest market with 143 of its 468 stores nationwide at the end of 2021.īut Covid aside, the market opportunity for pizza in China is quite large, according to third-party data in the prospectus. The same-store sales growth looks especially impressive when one considers that most big fast-food operators have recorded anemic growth or even contraction for that metric lately due to pandemic-related disruptions.Įven as we write this article, the mega-city of Shanghai is preparing to go into what’s likely to become a complete lockdown starting on April 1, as it tries to tame the latest local Covid outbreak caused by the highly contagious Omicron variant. We’ll look shortly at the company’s financials, including its recent rapid growth and rapidly improving same-store sales that both look quite strong. “In the long term, our goal is to become the number-one pizza company in China, as other Domino’s Pizza’s franchisees have done in Asia, Europe and North America,” it says in the prospectus. Talk is obviously cheap, but DPC Dash is quite direct about its big future plans to challenge Pizza Hut. That’s quite similar to the arrangement for Pizza Hut, China’s pizza market leader that is part of Yum China (9987.HK), which is the China franchisee for U.S. The company is the master China franchisee for U.S.-based Domino’s. But among the group, which includes a heavy focus on locally popular hotpots, DPC Dash is distinguished as the lone foreign flavor. We’ve written about many of those, including the likes of Yang Guofu, Green Tea Group and QiXinTian. This particular listing is the latest in a recent flurry of similar IPO plans by Chinese restaurant chains looking to raise money in Hong Kong. But that obvious bias aside, the company really does look like an interesting growth story, playing on China’s recent Covid-fueled craze for takeout dining that is Domino’s specialty. Before we go any further, a major disclosure is needed that this particular writer is a regular diner at Domino’s in Shanghai. disclosed the plan in its listing prospectus filed in Hong Kong this week, in a relatively modest deal likely to raise up to $100 million. The local operator of the Domino’s (DPZ.US) pizza chain is baking up China’s latest IPO, showing that locally popular hotpots aren’t the only ones who can tap global capital markets these days for some pepperoni from investors.ĭPC Dash Ltd.
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