Core Viewpoint - The article highlights the significant growth and strategic expansion of Domino's Pizza in China through its exclusive franchisee, Dashih Holdings, which reported a 41% revenue increase and plans to accelerate store openings by 2025 [1][3]. Group 1: Financial Performance - Dashih Holdings achieved its first full-year profitability in 2024, ranking among the top 30 in global store performance for Domino's [1]. - The company reported a revenue increase of 41.4% to 4.31 billion yuan (approximately 600 million USD) [5]. - Same-store sales grew by 2.5%, outperforming competitors like Pizza Hut, which saw a decline of 5% [6]. Group 2: Expansion Plans - The company plans to open 300 new stores in 2025, focusing on underdeveloped lower-tier cities [3][5]. - A capital expenditure budget of 570 million yuan (approximately 78.6 million USD) has been allocated for this expansion [3]. - The new stores opened in 2023 have shown impressive investment recovery, with an average payback period of less than 12 months [3]. Group 3: Market Strategy - Dashih Holdings has shifted its focus from first-tier cities to second and third-tier markets, which contributed 62% of its revenue last year [5]. - The company has successfully entered 10 new cities in 2024, expanding its coverage to 39 cities nationwide [5]. - The membership base grew from 14.6 million to 24.5 million, with membership consumption contribution increasing from 59.2% to 64.5% [6]. Group 4: Operational Efficiency - The operating profit margin improved from 13.8% in 2023 to 14.5% in 2024, contributing to a net profit of 55.2 million yuan (approximately 7.7 million USD) [6]. - The reduction in the stake of the American Domino's in the joint venture from 12% to 6.2% reflects Dashih's growing operational independence and attractiveness to external investors [4].