Domino's Pizza China operator DPC Dash Ltd posted first-half 2026 revenue of RMB3,133.8 million, up 20.8% from RMB2,593.4 million a year earlier, as aggressive network expansion and a 33.7% surge in transaction volume more than offset a pronounced decline in average ticket size. The Hong Kong-listed master franchisee (1405.HK) reported net profit attributable to owners of RMB81.0 million, a 22.9% year-over-year increase, while adjusted net profit rose 7.4% to RMB98.2 million.

The Numbers

The volume gains mask a significant pricing drag. Average transaction price fell 9.6% to RMB72.9, down from RMB80.7 in the same period of 2025, driven by deep consumer subsidies offered through third-party aggregator platform campaigns active since mid-2025. Same-store sales growth was -4.8% for the half, compared with -1.0% a year earlier. Same-store transaction count, however, grew 7.1% — accelerating from 3.9% in H1 2025 — underscoring that traffic is rising even as realized revenue per order falls. Store-level EBITDA grew 8.3% to RMB544.5 million, but store-level EBITDA margin contracted two percentage points to 17.4%. Adjusted EBITDA reached RMB350.7 million, up 8.6%, at an 11.2% margin versus 12.4% a year ago. The company closed the period with RMB934.7 million in cash and a gearing ratio of 7.9%.

Expansion & Supply Chain

DPC Dash opened 235 net new stores in the first six months, entering 15 new cities and bringing its total footprint to 1,550 outlets across 75 cities — split between 532 Tier 1 locations and 1,018 non-Tier 1. The company guides for approximately 350 net new openings for the full year 2026; as of 14 August, a further 27 stores had opened, with 38 under construction and 36 signed or approved. On the supply chain side, DPC Dash commissioned its fourth Supply Chain Centre in Wuhan on 21 August, with annual capacity to support over 200 stores. Sites for two additional SCCs — in Chengdu and Nanjing — have been secured, with operations targeted for the second half of 2027. The company's growing infrastructure footprint is central to its restaurant expansion strategy, as dough logistics costs have historically been a constraint on non-Tier 1 city profitability.

A notable competitive milestone: mainland China has become the second-largest international market within Domino's global system by store count, and Domino's Pizza China holds all of the top 70 positions in the Domino's worldwide first-30-day sales ranking. Delivery sales grew 44.7% to RMB1,618.8 million, and total loyalty program membership reached 41.9 million, up 39.2% year over year, with members accounting for 60.1% of revenue. New City markets recorded their first positive same-store transaction count growth reading of 2.2%, reversing from -19.1% in the prior-year period.

Management Outlook

CEO and Executive Director Aileen Wang acknowledged that subsidies from third-party aggregator platforms temporarily depressed ATP while accelerating delivery penetration, particularly in newer markets. She framed the same-store transaction improvement in New City markets as a sign that elevated opening-period sales are normalising rather than eroding structural demand. CFO Helen Wu noted that corporate-level cost efficiency continued to improve, with total corporate charges declining from 8.1% to 7.5% of revenue, partially cushioning the store-margin compression. Both executives pointed to gradual subsidy rationalisation as the primary lever for ATP recovery in the second half. With Domino's store density across its 75 operating cities at approximately 2.5 stores per million population — against an estimated 13.9 pizza stores per million population nationally — management argues the runway for foodservice network growth in China remains substantial.

Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.