DPC DASH (01405) recently announced its interim results for 2025, delivering an impressive performance across key financial metrics. The company achieved several historic milestones in the first half of the year: revenue increased 27% year-over-year to RMB 2.593 billion, maintaining double-digit growth for consecutive years; profitability also improved steadily with adjusted net profit reaching RMB 91.42 million, surging 79.6% year-over-year; net profit attributable to shareholders reached RMB 65.92 million, representing a substantial 504.4% year-over-year increase.

The company's outstanding performance can be attributed to its steadfast implementation of the "4D Strategy" - high-quality store Development, Delicious Pizza at Value, efficient Delivery experience, and Digital capabilities. Through coordinated efforts across product development, branding, and store operations, the company continues to strengthen its differentiated competitive advantages. With the ongoing expansion of the Western fast food market, the company is well-positioned to maintain high-quality, sustainable growth momentum.

**Innovation Meets Tradition: Creating High-Value Delicious Experiences**

For restaurant brands, taste remains the most powerful core competitive advantage, and DPC DASH clearly understands this principle. The company has long been committed to providing consumers with high-value delicious experiences, capturing both taste buds and hearts through exceptional product quality.

On one hand, the company has maintained stable menu pricing for years while preserving popular classic items such as Classic Italian Meat Sauce Pizza, Sultan King Durian Pizza, and American-Style Potato Bacon Pizza. These enduring favorites allow consumers to revisit classic flavors and drive consistent repeat purchases. On the other hand, the company actively pursues product innovation, continuously introducing new crust options and ingredient combinations to provide unique customization choices.

Through the company's proprietary mobile app, consumers can freely add or remove pizza ingredients, easily creating personalized pizzas that match their individual preferences. This highly flexible customization model has sparked consumer creativity, with numerous users on lifestyle platforms sharing "hidden Domino's recipes" and "treasure ordering strategies." Many popular posts have received over 10,000 likes, generating organic word-of-mouth promotion that expands the brand's reach while fostering positive brand-consumer interactions.

Additionally, the company maintains its positioning of "delicious yet affordable, economically practical," serving the mass market with accessible high-value offerings and continuously launching promotional activities to reward consumers. The menu clearly segments into three price tiers - "Great Value," "Classic Flavors," and "Premium Selection" - to meet diverse consumer needs. The company also regularly conducts various promotional campaigns on official online ordering channels in mainland China, with members able to redeem points for purchase discounts at a 1:1 ratio (1 RMB spent = 1 point), where 800 points can offset RMB 80, achieving up to 10% redemption value to help users save more and eat better.

**Scaled Expansion + Refined Operations: Dual-Engine High-Quality Growth**

While high-quality, value-oriented products form the foundation of DPC DASH's market position, the company's balance between scaled expansion and refined store operations has become a crucial engine driving sustainable growth.

In recent years, DPC DASH has accelerated store expansion, opening 1,198 new stores in mainland China during the first half of this year and successfully entering 48 new cities. New store performance has been particularly impressive, with the first Shenyang store breaking the global annual sales record of RMB 31 million previously held by Xiamen SM Phase III store after 198 days of operation. The first Handan store achieved RMB 540,000 in opening-day sales, setting a new global record for first-day performance at new Domino's locations. Existing stores maintained steady growth while new stores contributed significant incremental revenue, jointly driving rapid overall company expansion.

Simultaneously, in brand operations, the company consistently focuses on youthful, diversified strategies, continuously enhancing brand appeal and deepening brand value through cross-industry collaborations and other initiatives, achieving successful market expansion. Since last year, the company has actively pursued cross-industry partnerships, collaborating with popular IPs including Tencent's "White Wattle Corridor" and Hello Kitty. This year, the company partnered with the popular game "Eggy Party" for a spring-themed collaboration, effectively connecting online gaming interactions with offline consumption scenarios to stimulate user engagement and purchase intent. The company also launched six Snoopy "Sporty Pup" series blind boxes in collaboration with IP rights holders, further reinforcing the brand's fun and trendy image while strengthening emotional connections with young consumer groups.

In digital marketing, the company has actively expanded into short video and live streaming platforms like Douyin since last year, launching Douyin group buying and live streaming exclusive packages among various promotional formats, successfully attracting numerous potential customers and significantly enhancing brand influence.

The digital membership system has become a key component in enhancing user loyalty. Members can not only use points to directly offset purchase amounts but also enjoy joining gifts, point lottery draws, and various other promotional activities. On social platforms, users frequently share "value-hunting" strategies, such as new member "Expert Club" pizza and snack coupons, using 50 points for chances to win free pizza coupons, participating in mini-games for discount coupons, and cleverly combining multiple stackable offers to achieve "pizza freedom," further promoting the brand's reputation for being both delicious and affordable.

As of the first half of this year, the company's cumulative membership reached 30.1 million, representing 55.2% year-over-year growth, with member revenue contribution increasing from 63.6% to 66%, demonstrating steady growth in the user base.

Furthermore, the company maintains its commitment to "30-minute delivery guarantee with free pizza coupons for late deliveries," establishing an efficient, punctual delivery service system with an overall on-time delivery rate of 94%. This efficient operational system not only fully meets consumers' high expectations for timeliness but also effectively enhances customer satisfaction and trust.

**Western Fast Food Leads Growth While Lower-Tier Markets Contribute New Volume**

As life pace accelerates and consumer demands become increasingly diverse, street food is gaining popularity among young consumers due to its affordable pricing, quick service, and variety. According to the "2024 China Fast Food Industry Development Trend Report" by China Restaurant Industry Research Institute, fast food outlets reached nearly 3.827 million in Q2 2024, accounting for 48.0% of the market and maintaining the leading position among restaurant categories.

Against this backdrop, Western fast food has achieved rapid market expansion through rich product lines and highly standardized operational models. The "Western Fast Food Category Development Report 2025" published by Red Dining Industry Research Institute indicates that China's Western fast food market reached RMB 297.5 billion in 2024, growing 11.0% year-over-year and leading growth among snack and fast food subcategories. As of March 2025, national Western fast food outlets reached 325,000, up 6.6% year-over-year, with full-year market growth expected to maintain above 10%.

Beyond high-consumption first-tier cities, lower-tier markets are becoming new focal points for restaurant brand expansion. Red Dining big data shows that as of March 2025, store proportions in third-tier and below cities continue rising, with third-tier, fourth-tier, and fifth-tier and below cities increasing their store shares by 1.6, 1.5, and 0.7 percentage points respectively compared to 2024, indicating accelerated Western fast food brand penetration into lower-tier markets.

With consumption upgrades and gradual market education, consumer restaurant demands are shifting from purely pursuing "cost-effectiveness" toward emphasizing "quality-price ratio." While maintaining focus on reasonable pricing, consumers increasingly value food quality consistency and overall dining experience, pursuing "value for every dollar spent."

Responding to new consumption trends, DPC DASH maintains its brand positioning of "delicious, affordable, high quality-price ratio" and has formulated a "deep and wide" store development strategy, accelerating penetration into lower-tier cities while maintaining healthy, rapid growth in store networks.

**Summary**

Overall, DPC DASH has built core competitive barriers through solid product capabilities, driven by the dual engines of scaled store expansion and refined operations, continuously strengthening high-quality growth momentum and gradually forming a virtuous cycle of sustainable development. As a leading Western fast food brand with solid fundamentals and clear strategy, DPC DASH possesses sustainable growth potential and merits long-term investor attention.