Domino's Pizza Inc

Domino's Pizza (DPZ)

Domino's is a pizza delivery and carry-out chain with ~21,300 locations across 90+ countries, roughly a third of which are in the US. Almost all stores are franchised.

The company makes money in two main ways: (1) selling food and supplies to US and Canadian franchisees through its own network of 25 dough-production and distribution facilities — this is its largest revenue stream at ~60% of sales — and (2) collecting royalties and marketing fees from franchisees worldwide. A small number of company-owned stores contribute the remainder.

In short, Domino's functions more like a food manufacturer and franchisor than a restaurant operator — franchisees run the stores, while Domino's profits from supplying them and licensing the brand.