DPZ - People Think Domino's Makes Money by Selling Pizza but 60% of Its Revenue Comes From Something Else Entirely
2023-12-21 06:12:00 ET
With over 20,000 locations worldwide, Domino's Pizza (NYSE: DPZ) is Earth's biggest pizza company. So how much money do you think it makes from selling pizza to hungry customers? $1 billion? $5 billion? $10 billion?
What if I told you that Domino's has generated revenue of less than $400 million in pizza sales over the last 12 months? This number might sound absurdly low, but it's accurate. Most of the company's revenue actually comes from something other than selling pizza, and many investors don't realize how Domino's business model actually works.
According to the company's filings, Domino's has generated $2.7 billion in trailing-12-month supply chain revenue. This is a whopping 60% of its top line for this period.
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People Think Domino's Makes Money by Selling Pizza, but 60% of Its Revenue Comes From Something Else Entirely