Dazhong Shares (01405.HK) - Domino's China Honored with Gelonghui's 'Outstanding Consumer Brand of the Year' Award

In December 2025, the results of Gelonghui’s 'Golden Grid Awards' for Outstanding Company of the Year were announced. Dazhong Shares (01405.HK) received the 'Outstanding Consumer Brand of the Year' award. Dazhong Shares is the exclusive master franchisee of Domino's Pizza in mainland China, the Hong Kong Special Administrative Region, and the Macao Special Administrative Region. For Domino's China, this recognition reflects market approval of the company’s development. $DPC DASH (01405.HK)$

The 'Annual Outstanding Consumer Brand Enterprise' award selects high-quality companies in the consumer goods industry with strong resilience and continuous innovation from multiple perspectives such as brand awareness, influence, and growth potential. The final results are derived through quantitative data analysis and expert panel reviews, making it a highly prestigious accolade.

For enterprises, this recognition indirectly confirms their accumulated core competitiveness and market adaptability.

If we delve into the logic behind winning the award, Domino's China stands out for two key aspects.

1. Consistently implementing a store expansion strategy of 'going deeper and broader,' achieving rapid expansion against market headwinds.

China’s catering market in 2025 is still undergoing deep adjustments while seeking direction. A striking statistic reveals the overall chill in the industry: in the first half of the year, an average of six restaurants closed every minute, with a total of 1.61 million exits. This profoundly reflects the widespread difficulty of 'opening stores.'

However, Domino's China has been rapidly expanding its new store count, with a particularly firm push in its market penetration strategy.

According to the latest market data, as of December 31, 2025, Domino's China has opened 1,315 stores across 60 cities in mainland China.It entered 21 new cities and added a net increase of 307 stores. On January 1, 2026, the group opened another 62 stores across 46 cities, continuing its robust store network expansion momentum.

In the fourth quarter, same-store sales in first-tier cities maintained positive growth. After excluding the impact of new stores in markets entered after December 2022, the group's same-store sales still showed positive growth for the second half of 2025 and the fiscal year 2025, fully demonstrating the brand’s strong momentum.

Moreover, what has caught the market's attention is that Domino's new stores have repeatedly ignited local consumer enthusiasm, truly achieving the ideal scenario of 'one successful store after another,' continuously breaking its own records.

In December 2024, Domino's first store in Shenyang opened. After operating for 198 days, it generated over 31 million yuan in revenue, setting a new annual sales record for Domino's globally. In August 2025, the first Domino's store in Handan debuted, with its first month’s sales exceeding 6 million yuan. Shortly after, the first store in Xuzhou, which opened during the National Day holiday, broke the global single-day sales record for Domino’s outlets. The momentum continued into the New Year holiday of 2026, as multiple stores opened simultaneously. The first-day sales at the Dalian inaugural store reached nearly 700,000 yuan, once again setting a new global single-day sales record for Domino’s.

The steady rise in these figures demonstrates Domino's China effective application of mature market experience, while also showcasing its gradual accumulation of consumer awareness and systematic approach to expansion in lower-tier markets, providing solid support for sustainable growth.

2. An efficiency-driven development model lays the foundation for long-term stable operations.

Domino’s China has achieved a 'fast yet high-quality' pace in store expansion, primarily relying on the continuous optimization of end-to-end operational efficiency. Clearly, their strategy for lower-tier cities is not a simple geographic shift but rather a systematic plan centered around efficiency, which has helped build a strong competitive edge.

Specifically, Domino’s China’s efficiency improvements are reflected in two key dimensions:

The first is capital turnover efficiency. Return on investment (ROI) cycle is a crucial metric for evaluating the quality of store expansion. Domino’s China’s strategy for smaller cities is driving steady improvements in ROI efficiency. According to the 2023 prospectus, in established markets like Beijing and Shanghai, the cash payback period for stores remained stable, averaging no more than 36 months. Meanwhile, data from the 2025 interim report shows that the average cash payback period for the first batch of stores in new markets has been significantly shortened.

This performance is relatively rare in the fast-food chain industry. Not only does it imply that capital can achieve high turnover and reinvestment, forming a virtuous cycle of 'investment-recovery-expansion,' but it also confirms that its profitability model is highly adaptable and replicable in non-first-tier cities.

The second dimension is operational efficiency. Domino’s China’s strategy for lower-tier cities relies on a robust supply chain system, ensuring consistent pizza taste and quality across all locations, thereby systematically strengthening operational efficiency advantages.

A mature supply chain framework provides strong support for rapid product iteration. Domino’s China can launch a new product every 6 to 12 weeks, creating diverse crust options and personalized customization through localized innovation, continuously enriching the menu structure. This also leaves ample room for price strategy adjustments, helping the brand establish a clear perception of 'high-quality value' in consumers’ minds.

Domino’s China’s store expansion aligns with the coverage area of central kitchens, improving their utilization rates. Currently, Domino’s operates three central kitchens in mainland China, located in Shanghai, Beijing, and Dongguan, covering the East China, North China, and South China regions, respectively. This strategic setup is a key reason why nearby cities have been prioritized and efficiently developed.

This continuous and high-quality expansion capability is the foundation of its winning the 'Outstanding Consumer Brand Enterprise of the Year' award, and also the core logic for its future sustained growth and gaining recognition in the capital markets. Ultimately, a quality brand will inevitably realize its value through impressive capital returns.

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