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How did the rise of 3 rd party delivery services (i.e., DoorDash, Uber Eats, GrubHub) impact Domino's? How did Domino's leverage technology to improve customer

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  1. How did the rise of 3rd party delivery services (i.e., DoorDash, Uber Eats, GrubHub) impact Domino's?
  2. How did Domino's leverage technology to improve customer service? Cite specific examples from the case.
  3. How has the focus on technology and innovation affected Domino's human resources strategy?
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Exhibit 7a Domino's Financials: 2012-2019 2012-2019 2012 2013 2014 2015 2016 2017 2018 2019 CAGR Income statement data: Revenues: U.S. Company owned stores $124 $137 $349 $397 $439 $491 $615 $454 4.9% U.S. franchise royalties and fees $195 $212 $230 $273 $312 $351 $392 $429 11.9%% U.S. franchise advertising (1) $358 $381 MM U.S. stores $519 $560 $679 $670 $751 $842 $1285 $1.273 13.7% Supply chain $1.040 $1.119 $1,263 $1383 51.544 $1.729 $1943 $2.106 10.8% International franchise royalties and fees $120 $134 $153 $164 $177 $207 $225 $241 10.5% Total revenues $1,870 $1,802 : $1,994 $2 217 $2473 1 $2 780 $1413 $1619 11.8% Cost of sales $1,177 $1,263 $1,399 $1,533 $1,705 $1,922 $2,130 $2216 9.59% Operating margin $601 $549 $595 $683 $768 $886 $1,303 $1,403 15.1% General and administrative expense $219 $235 $249 $278 $314 $345 $473 $382 8.3%% U.S. franchise advertising (1) 30 $358 NM Income from operations $242 $314 $345 $405 $464 $521 $572 $629 12.1% Interest income $1 $2 $3 $4 44.0% Interest expense $101 587 -$100 $110 $123 $146 $161 5.0% Other SO 0.0%% Income before provision for income taxes $181 $225 $26 $306 $345 $400 $429 $401 15.0% Provision for income boxes $69 $82 SUB $1 13 $130 $122 2.5% Net income $112 $143 $163 $193 $215 $278 $082 $401 19.9% Earnings per share: Common stock - basic $1.99 $2 50 $2.98 $3.68 $4.41 $6.05 $8.65 $9.83 26.8% Common stock - diluted $1.91 $240 $2.86 $3.47 $4.30 $5.03 $8.35 $9.56 25.9% Balance shoot data (at end of period): Cash and cash equivalents $55 $14 $31 $123 $43 $36 $25 $191 19.5% Restricted cash and cash equivalents $60 $126 $121 $181 $127 $192 $167 $209 19.5% Working capital (2) $17 -$29 $42 $46 $14 $10 $15 $121 32.6% Total assets (3) $443 $497 $598 $800 $716 $837 $907 $1,302 17.8%% Total debt net of debl issuance cost $1,528 $1,508 $1,501 $2 241 $2 108 $2,154 $1532 $4,114 15.2% Total stockholders' deficit $1,338 -$1290 $1220 $1,800 $1,803 -$2735 -$3,040 -$3,416 14.4% Source Domino's Pizza, Inc., December 31, 2019 10.K (Ann Arbor Domino's Pizza, Inc.), http://dominos.pcs- web.com/static-files/5a31b17e-0908-4fc4-ac72-d57042702c89, accessed November 2020. Domino's Pizza, Inc., December 28, 2014 10-K (Ann Arbor: Domino's Pizza, Inc.). https://dominos.grs-web.com/static-files/58lablech-cub()- 450a-898a-2012f61bd809d, accessed November 2020. Domino's Pizza, Inc., January 3, 2016 10-K (Ann Arbor: Domino's Pizza, Inc.), https://dominosges-web.com/static-files/613bb0)04-1a16-47Hf-ada4-a7fla8%defBa, accessed November 2020. Domino's Pizza, Inc., December 28, 2014 10-K (Ann Arbor Domino's Pizza, Inc.). https//dominos.pcs web.com/static-files/583alleco-chibi-450la-8985-202f61bd8:4d, accessed November 20120. (1) The adoption of Accounting Standards Codification 606 in 2018 resulted in the recognition of revenue and expenses related to U.S. franchise contributions to DNAF. In prior years, contributions were presented net of related disbursements. (2) The working capital amounts exclude restricted cash. (3) Total assets as of December 29, 2019 reflects the adoption of Accounting Standards Codification 842,Leases. 17Exhibit 7b Domino's Supplementary Financials: 2012-2019 2009-2019 2012 2013 2014 2015 2016 2017 2018 2019 CAGR Other financial data: Depreciation and amortization $23.2 $25.8 $358 $32.4 $38.1 5444 $53.7 $59.9 14.5% Capital expenditures $29.3 $40.4 $718 $624 $61.5 590.3 5119.7 $88.7 17.1% Dividends declared per share $3.00 $0.80 $100 $1.24 $1.52 $184 $2.20 $2.60 -2.0% Same store sales growth (1): U.S. Company-owned stores 1.3% 3.9% 6 2 12.2% 10.4% 8.7% 4.8% 2.8% NM U.S. franchise stores 3.2% 5.5% 7.7% 11.9% 10.5% 7.6% 6.8% 3.2% NM U.S. stores 3.1% 5.4% 7.5% 12.0% 10.5% 7.7% 6.6% 3.2% NM International stores 5.2% 6.2% 6.9% 7:8% 6.3% 3.4% 3.5% 1.9% NM Store counts (at end of period): U.S. Company-owned stores 388 390 377 384 392 392 390 342 -1.8% U.S. franchise stores 4.540 4,596 4,690 4.816 4,979 5,195 5.486 5,784 3.5% U.S. stores 4.928 4,986 5,067 5.200 5,371 5.587 5.876 6,126 3.2% International stores 5.327 5,900 6,562 7.330 8440 9269 10.038 10,894 10.8% Total stores 10 255 10,886 11,629 12 530 13,811 14,856 15,914 17,020 7.5% Source Domino's Pizza, Inc. December 31, 2019 10.K (Ann Arbor. Domino's Pizza, Inc.), https//dominos.ps web.com/static-files/5a31b17e-0908-4fc4-2c/2-d57042702c89, accessed November 2020. Domino's Pizza, Inc., December 28, 2014 10-K (Ann Arbor. Domino's Pizza, Inc.), https://dominos.ges-web.com/static-files/58tableco-chib()- 4504-898a-2012f61bdse'd, accessed November 20120). Domino's Pizza, Inc., January 3, 2016 10-K (Ann Arbor. Domino's Pizza, Inc.). https//dominospes-web.com/static-files/613bb004-1216-478f-ada4-a/flaSade#Ba, accessed November 20120 Domino's Pizza, Inc., December 28, 2014 10-K (Ann Arbor. Domino's Pizza, Inc.) https// dominos.pxs- web.com/static-files/583alleco-chibi-450la-8985-200f61bd8:4d, accessed November 20120. (1) Same store sales growth is calculated including only sales from stores that also had sales in the comparable period of the prior year, but excluding sales from certain seasonal locations such as stadiums and concert arenas. International same store sales growth is calculated similarly to domestic same store sales growth, Changes in international same store sales are reported on a constant dollar basis which reflects changes in international local currency sales. 181,500 00% 3,000 DO January 2008 - December 2020) 2,500 00% 1,500 00364 1,030 00. Exhibit 9a Domino's Relative Share Price Performance vs. 5&P 500 and S&P 500 Restaurants Han.02-2008 May 15 2008 Sept.90 2008 $06-13-2009 -200 Ms: 20-2010 AND. 12.2016 May. 11-201 Sources Capital 10, accessed December 2020. Sep-23-2081 3,500 Dux 2008 - December 2020) -2012 2,500 0OK Mar-28 2013 2,030 1064 Ber.26 2013 1,500 DOE May ON 2014 Ses- 22-2018 Nov.O Ma: 31-2016 -500 00 Deals-2080 2:2008 Exhibit 9b Domino's Relative Share Price Performance vs. Selected Technology Stocks (January May. -03-2017 May-18-2008 Sep-& 2018 jun. 18 2018 ON- 29-2018 NOV.11.2009 Mar. 13 2018 Mar 10.2010 1 23-2019 20 AUG. 12.2010 DIN-27.2010 Agr. 2020 May 18.2018 28-2026 Sep- 29.2013 -Doming's Source: Capital IQ, accessed December 2020. Feb 08. 2012 hin. 22.2012 None (7 2012 Mar.26-2013 Aug 07.2013 Dec. 19 2013 Alphabet inc. May 67.2014 Sep 18 2014 Feb 64-2015 Jun 19 2015 Nov 02-2018 Mat-16-2016 6-03 2016 Aminor.com May 92-2019 Sep.14.2013 jan 30 2018 hin. 14- 2018 Oct 26-2018 Mar- 12.2019 28-22-20219 Nov.28 2019 ADe.45.2020 Aug 27-2020

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