DPZ Investor Presentation

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Domino's

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2020

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#1DOMINO'S INVESTOR PRESENTATION Domino's Domino's APRIL 2021 D VE INTO THESE MOUTHWATERING P HARINARA#2LEGAL STUFF Forward-Looking Statements This presentation and our accompanying comments include forward-looking statements. These statements may relate to future events or our future financial performance and are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. This presentation and our accompanying comments do not purport to identify the risks inherent in an investment in Domino's Pizza and factors that could cause actual results to differ materially from those expressed or implied in the forward- looking statements. These risks include but are not limited to those risk factors identified in Domino's Pizza, Inc.'s Annual Report on Form 10-K for the fiscal year ended January 3, 2021, as well as other SEC reports filed by Domino's Pizza, Inc. from time to time. Although we believe that the expectations reflected in the forward-looking statements are based upon reasonable estimates and assumptions, we cannot guarantee future results, levels of activity, performance or achievements. We caution you not to place undue reliance on forward-looking statements, which reflect our estimates and assumptions and speak only as of the date of this presentation and you should not rely on such statements as representing the views of the Company as of any subsequent date. We undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. In light of the above, you are urged to review the disclosures contained in the reports Domino's Pizza, Inc. files with the SEC from time to time, including the risk factors contained therein. Additionally, we caution you that past performance does not guarantee or predict future performance, within particular segments or geographies, or otherwise. Trademarks This presentation contains trade names, trademarks and service marks of other companies. We do not intend our use or display of other parties' trade names, trademarks and service marks to imply a relationship with, or endorsement or sponsorship of, these other parties. Industry and Market Data This presentation includes market data and other statistical information from third party sources, including independent industry publications and other published independent sources. Although we believe that these third- party sources are reliable as of their respective dates, we have not independently verified the accuracy or completeness of this information. Certain Metrics In this presentation, the Company has included metrics such as global retail sales, global retail sales growth, international same store sales growth and U.S. same store sales growth, which are commonly used statistical measures in the quick-service restaurant industry that are important to understanding Company performance. The Company uses "Global retail sales" to refer to total worldwide retail sales at Company-owned and franchise stores. The Company believes global retail sales information is useful in analyzing revenues because franchisees pay royalties and advertising fees that are based on a percentage of franchise retail sales. The Company reviews comparable industry global retail sales information to assess business trends and to track the growth of the Domino's Pizza® brand. In addition, supply chain revenues are directly impacted by changes in franchise retail sales. Retail sales for franchise stores are reported to the Company by its franchisees and are not included in Company revenues. Global retail sales growth is calculated as the change of U.S. Dollar global retail sales against the comparable period of the prior year. Global retail sales growth, excluding foreign currency impact is calculated as the change of international local currency global retail sales against the comparable period of the prior year. Global retail sales growth, excluding foreign currency impact and 53rd week impact is calculated as the change of international local currency global retail sales against the comparable period of the prior year and excluding the global retail sales attributable to the Company's 53rd week. The Company uses "Same store sales growth," which is calculated for a given period by including only sales from stores that had sales in the comparable weeks of both years. International same store sales growth is calculated similarly to U.S. same store sales growth. Changes in international same store sales are reported excluding foreign currency impacts, which reflect changes in international local currency sales. The 53rd week in fiscal 2020 had no impact on reported same store sales growth amounts. DPZ INVESTOR PRESENTATION 2#3WE ARE #1 IN GLOBAL QSR PIZZA $16.1B GLOBAL RETAIL SALES MCCARTHY HOLTHUS 17% GLOBAL MARKET SHARE IN QSR PIZZA 17,600+ CURRENT GLOBAL STORES Domino's Domino's EM 191 57% DELIVERY TRANSACTIONS FRS 43% CARRYOUT TRANSACTIONS 98% FRANCHISED As of FY 2020 (except for Global Market Share, which is FY 2019) Market Share Sources: U.S. Pizza Category from The NPD Group/CREST® and International Limited-Service Pizza Category from Euromonitor for the year-ending 2019. Я DEADINE 90+ CURRENT GLOBAL MARKETS 14#4As of FY 2020 ENTERPRISE OF 17,600+ STORES...IN 90+ MARKETS 6,355 11,289 U.S. Stores International Stores کے DPZ INVESTOR PRESENTATION 4#5OUR GOAL: BECOME THE DOMINANT #1 PIZZA COMPANY IN THE WORLD#6STRONG, GROWING, AND FRAGMENTED CATEGORY Global Pizza Industry $141B Global QSR Pizza Industry $85B $56B QSR $85B $38B $47B Growing U.S. low single digits ■ Intl. 3%-6% Globally, carryout and delivery segments are growing faster than dine-in ■ U.S. QSR Pizza Market ■Intl. QSR Pizza Industry Fragmented U.S. Top 4 52% Intl. Top 4 32% Source for U.S. Pizza Category from The NPD Group/CRESTⓇ year ending December 2020: the U.S. QSR pizza category is valued at $38.2 billion and the U.S. Casual Dining pizza category is valued at $2.4 billion Source for International Pizza Category from Euromonitor International for year ending 2019: the International QSR pizza category is valued at $47 billion and the International Full-service pizza category is valued at $54 billion DPZ INVESTOR PRESENTATION 6#7OPPORTUNITY EXISTS FOR SHARE GROWTH U.S. TOTAL QSR PIZZA MARKET SHARE 2020 U.S. PIZZA DELIVERY MARKET SHARE 2020 U.S. PIZZA CARRYOUT MARKET SHARE 2020 GE 22% 48% 30% 36% 37% 15% 27% 52% 32% Domino's Pizza Other Major Pizza Chains Regional Chains and Independents Source: The NPD Group/CREST®, Year Ending November 2020 Carryout includes Carryout and Drive-thru DPZ INVESTOR PRESENTATION 7#8OPPORTUNITY EXISTS FOR STORE GROWTH U.S. STORE POTENTIAL 6,355 U.S. STORES AS OF FY 2020 INTERNATIONAL STORE POTENTIAL DEVELOPED MARKETS EMERGING MARKETS Тор Last Disclosed Potential Store Potential Top Last Disclosed Store 8,000 Markets Store Count Markets Store Count Count Count UK 1,147 1,675 POTENTIAL U.S. STORES India 1,314 1,800 Australia 709 1,200 Japan 758 1,000 Mexico 781 1,025 Canada 545 700 Turkey 568 900 South Korea 476 500 China 382 1,000 France 435 1,000 Germany 354 1,000 Brazil 309 1,010 Spain 337 350 Saudi Arabia 273 450 Netherlands 310 400 TOTAL 5,071 7,825 TOTAL 3,627 6,185 5,300+ POTENTIAL INCREMENTAL STORES IN TOP 15 MARKETS ALONE U.S. store potential represents management's internal estimate based on review of Company data; Australia, Japan, Netherlands, Germany and France store counts as of March 31, 2021 (investors.dominos.com.au/stores); India as of Q3'21 earnings (February 9, 2021); UK as of FY"20 earnings (March 11, 2021); Turkey as of FY'20 trading update (March 23, 2021); Mexico and Spain as of Q4'20 earnings (February 25, 2021); All other markets based on non-public master franchisee disclosure approval (coinciding with DPZ Q4'20 earnings timing). DPZ INVESTOR PRESENTATION 8#9STRONG INTERNATIONAL MASTER FRANCHISE PARTNERS Domino's Pizza Enterprises Ltd. - DMP (ASX) $6.5B Market Cap 2,836 Domino's Stores 1,314 Domino's Stores $5.8B Market Cap Jubilant FoodWorks Ltd. - JUBLFOOD (NSE) Domino's Pizza Group PLC - DOM (LON) $2.1B Market Cap 1,258 Domino's Stores 1,234 Domino's Stores $1.0B Market Cap Alsea SAB de CV - ALSSF (OTCMKTS) DP Eurasia - DPEU (LON) $134M Market Cap 771 Domino's Stores Market capitalization numbers as of 2/23/2021 and adjusted for local currency. DPE store count as of 3/31/2021 (investors.dominos.com.au/stores). DPG store count as of 3/11/21 (FY'20 earnings). Alsea store count as of 2/25/21 (Q4'20 earnings). Jubilant store count as of 2/3/21 (Q3'21 earnings). DP Eurasia store count as of 3/23/21 (FY'20 earnings). DPZ INVESTOR PRESENTATION 9#10FOCUS REMAINS ON OUR KEY STAKEHOLDERS CUSTOMERS TEAM MEMBERS FRANCHISEES COMMUNITIES SHAREHOLDERS Global Quality Products Competitive Wages & Benefits Strong Unit Charitable Retail Sales Economics Giving and Comp Excellent Career Operational Social Value Pathing Simplicity Impact Great Franchise Cash-on- Service Opportunities Cash Return Environmental Responsibility Growth Strong EPS Growth and TSR Consistent Return of Capital to Shareholders DPZ INVESTOR PRESENTATION 10#11FOCUS ON KEY STAKEHOLDERS: CUSTOMERS Offering QUALITY PRODUCTS for EXCELLENT VALUE with GREAT SERVICE ALL DAY, EVERY DAY -LARGE 3 TOPPING- $7.99 EACH CARRYOUT ONLY MIX & MATCH CHOOSE TWO OR MORE ITEMS FOR $5.991 ORDER NOW ANYWARE 27M ACTIVE USERS OF OUR LOYALTY PROGRAM PIECE of the PIE REWARDS FREE PIZZA IS SO CLOSE YOU CAN TASTE IT. JOIN NOW DELIVERY TRADER >70% U.S. SALES VIA DIGITAL CHANNELS $5.99 Leveraging TECHNOLOGY to enhance INNOVATION and drive LOYALTY Active users of loyalty program and U.S. Sales via digital channels as of YE 2020. Active users of loyalty program represent users who have used the program in the last 6 months. DPZ INVESTOR PRESENTATION 11#12ONE STORE, TWO BUSINESSES Domino's DOMING'S SALAR Delivery 57% of Transactions 2/3 of Sales Two Largest Segments in QSR Pizza Carryout 43% of Transactions 1/3 of Sales Delivery and carryout metrics are based on FY2020 U.S. results. DPZ INVESTOR PRESENTATION 12#13TRACK RECORD OF GLOBAL RETAIL SALES GROWTH ($ in billions) Domino's Global Retail Sales + 10.0% CAGR $16.1 $14.3 $13.5 $12.3 $10.9 $9.9 $8.9 $8.0 63 70 7.8 7.3 7.0 6.3 $7.4 5.5 $7.0 $6.3 5.1 $5.6 4.8 4.3 3.9 3.5 3.0 2.5 8.3 6.6 7.0 5.9 5.3 4.8 3.1 3.3 3.4 3.6 3.8 4.1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Note: 2009, 2015 and 2020 results include impact of a 53rd week. Domestic Sales International Sales DPZ INVESTOR PRESENTATION 13#14TRACK RECORD OF GLOBAL COMP SUCCESS U.S. Same Store Sales 39 consecutive quarters of positive SSS 6.8% 4.5% 4.9% 4.0% 2.8% 2.6% 1.3% 1.8% 0.0% 0.5% 12.0% 9.9% 10.5% 11.5% 7.5% 7.7% 5.4% 6.6% 3.5% 3.1% 3.2% Avg: +4.1% (1.7%) (4.1%) (4.9%) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010-2020 Average: +7.4% 2020 International Same Store Sales 11.1% 6.4% 5.9% 6.1% 3.4% 3.6% 3.7% 4.1% 4.0% 4.0% 108 consecutive quarters of positive SSS 7.8% 6.7% 6.9% 6.8% 6.9% 6.2% 6.2% 6.3% 5.2% 4.3% 1 ill 3.4% 3.5% 1.9% 4.4% Avg: +5.4% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010-2020 Average: +5.4% Note: International sales excludes the impact of foreign currency exchange rate changes. DPZ INVESTOR PRESENTATION 14#15FOCUS ON KEY STAKEHOLDERS: TEAM MEMBERS العبا 园 Career Pathing wen-Baked Goodness S1960 Competitive Wages & Benefits D Dominc Franchise Opportunities DPZ INVESTOR PRESENTATION 15#16FOCUS ON KEY STAKEHOLDERS: FRANCHISEES $1M+ AVERAGE ANNUAL ENTERPRISE EBITDA PER U.S. FRANCHISEE Strong Unit Economics <3 YEARS AVERAGE CASH- ON-CASH RETURN PAYBACK Domino's 100% INT'L MASTER FRANCHISEE MODEL 95%+ U.S. FRANCHISEES WE ESTIMATE STARTED AS DRIVERS, PIZZA MAKERS, OR OTHER IN-STORE WORKERS Operational Simplicity Average annual enterprise EBITDA per U.S. franchisee represents estimated average U.S. franchise store EBITDA multiplied by average number of stores per U.S. franchisee. Reflects average store investment of $300-350k and estimated average U.S. franchise store EBITDA detailed on slide 18. DPZ INVESTOR PRESENTATION 16#17INDUSTRY-LEADING FRANCHISE STORE PROFITABILITY Estimated Average U.S. Franchise Store EBITDA ($ in thousands) +10.2% CAGR $158+ $141 $143 $133 $136 $126 $89 $82 $75 $67 $70 $61 $49 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PRELIM 2020 EST. Estimated average U.S. franchise store EBITDA is an internal company estimate based on unaudited results self-reported by U.S. franchise owners. DPZ INVESTOR PRESENTATION 17#18FORTRESSING PROVIDES PROFITABLE GROWTH OPPORTUNITIES 4283 4282 M 4281 Roanoke Count Better Service Lower Delivery Costs Incremental Carryout Busier Drivers Franchisees Grow Their Enterprise Clearbrook 4282 8495 4281 Roanoke County 8 DPZ INVESTOR PRESENTATION 18#19FOCUS ON KEY STAKEHOLDERS: COMMUNITIES 2020 COMMUNITY INVOLVEMENT DELIVERED BY DOMINO'S MORE THAN $2.4 MILLION DONATED TO NONPROFIT ORGANIZATIONS $13 MILLION RAISED IN STORES FOR ST. JUDE CHILDREN'S RESEARCH HOSPITAL St. Jude Children's Research Hospital Finding cures. Saving children.. gistix の PARTNERS FOUNDATION 20 GRANTS AND 18 SCHOLARSHIPS FOR FFA* STUDENTS TO SUPPORT THE FUTURE OF AGRICULTURE APPROXIMATELY 1.2 MILLION PIZZAS DONATED $ ABOUT 130 LOCAL NONPROFITS RECEIVED MONETARY SUPPORT 26098 $600K $330K DONATED TO THE DOMINO'S PARTNERS PARTNERS FOUNDATION FOUNDATION DONATED TO NONPROFITS SUPPORTING BLACK PEOPLE IN OUR COMMUNITY 50,000 TREES PLANTED IN NORTH AMERICA WITH ONE TREE PLANTED erican Cross TM THE RECYCLING PARTNERSHIP DPZ INVESTOR PRESENTATION 19#20FOCUS ON KEY STAKEHOLDERS: SHAREHOLDERS ~25% CAGR EPS, as adjusted $5.91 $4.30 $3.45 $2.90 $2.45 $2.02 $12.01 $9.57 $8.42 2012 2013 2014 2015 2016 2017 2018 2019 2020 Certain diluted EPS amounts are adjusted for items affecting comparability; Items adjusting comparability are detailed in the respective Company Earnings Releases Actual EPS: 2012: $1.91; 2013: $2.48; 2014: $2.86; 2015: $3.47; 2016: $4.30; 2017: $5.83; 2018: $8.35; 2019: $9.56; 2020: $12.39 DPZ INVESTOR PRESENTATION 20#21FOCUS ON KEY STAKEHOLDERS: SHAREHOLDERS SHARE REPURCHASES AND DIVIDENDS TOTAL SHAREHOLDER RETURNS ($ in millions) $4.8B Returned to $1,200 Recap Shareholders $1,100 $1,000 $900 $800 10-Year 5-Year 3-Year 111% 2,730% 261% Recap Recap Recap $700 $600 $500 Recap $400 48% 103% $300 $200 261% $100 $0 2012 2013 2014 ■Ordinary Dividends ■Special Dividends ■ OMR 2015 2016 2017 2018 2019 2020 ■ ASR Share Repurchases and Dividends - as disclosed in the 10-K; 5-year TSR as disclosed in the 10-K; TSR reflects DPZ closing share price on final trading day of each calendar year; TSR through December 31, 2020; both DPZ and the S&P 500 reflect the reinvestment of dividends Source: Bloomberg Terminal ■DPZ ■ S&P 500 DPZ INVESTOR PRESENTATION 21#22MODEL FUNCTIONS WELL WITH LEVERAGE Outstanding Debt: - ~$4.1 billion total (completed latest recapitalization in November 2019) New debt added includes $675 million at a rate of 3.67% Have Used Leverage and Free Cash Flow to: - Buy Back Shares • $305 million in 2020 $25.0 million 2021 YTD as of 2/18/21 $594 million in 2019 As of Q4 2020 • Existing 2018 debt of $825 million • Existing 2017 debt of $1.6 billion in fixed rate notes and $300 million in variable rate notes • Existing 2015 debt of $800 million ➤ Blended rate of total outstanding notes is ~3.8% as of Q4 2020 Debt-to-EBITDA ratio at ~6.0x upon 2019 recap completion • 3-6x is stated target range Next par call date: ➤ October 2022 ($420 million 2018 notes, due 2025) ($774 million 2015 notes, due 2025) $591 million in 2018 $1.06 billion in 2017 $1 billion repurchase authorization as of 2/25/21 Pay Dividends Quarterly dividends: ➤ $122 million (2020) $105 million (2019) $92 million (2018) ➤ $84 million (2017) Special dividends in 2007 and 2012 DPZ INVESTOR PRESENTATION 22#232021 FISCAL GUIDANCE INVESTMENTS TO DRIVE GROWTH ANTICIPATED EXTERNAL MARKET IMPACT G&A: $415-425M CAPEX: ~$100M Spending may vary depending on Company performance and strategic opportunities. Domino's does not provide quarterly or annual earnings guidance, or any annual guidance other than G&A, CapEx, Food Basket and FX. FX: $4-8M POSITIVE vs. 2020 FOOD BASKET: +2.5 - 3.5% vs. 2020 DPZ INVESTOR PRESENTATION 23#242-3 YEAR OUTLOOK GLOBAL NET UNIT GROWTH GLOBAL RETAIL SALES GROWTH 6-8% 6 - 10% Outlook does not constitute specific earnings guidance Domino's does not provide quarterly or annual earnings guidance Global Retail Sales Growth excludes foreign currency impact DPZ INVESTOR PRESENTATION 24#25DPZ LISTED NYSE Investor Relations: Chris Brandon [email protected] Dominos J SQUARE

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