Summary of Key Highlights
In the first half of 2026, Domino's China delivered an impressive performance: both revenue and profits reached new highs, with the number of stores rapidly expanding to 1,550 locations across 75 cities. New markets, such as Harbin and Lanzhou, have been a huge success, even setting global records for single-store sales. The company's supply chain has been further enhanced, with four regional centers covering the entire country. Operational efficiency has continued to improve, with new stores generating profits quickly and demonstrating strong scalability across different cities, with delivery services becoming a key driver of growth. China has now become Domino's second-largest international market, and its new stores have the strongest growth potential globally.
Detailed Analysis
1. Dual Success in Performance: Growing Profitability and Increasing Customer Base
Domino's China earned 3.134 billion yuan in the first half of the year (a 20.8% increase from last year) and a net profit of 81.05 million yuan (a 22.9% increase), both reaching record levels. Notably, despite opening many new stores, business at existing locations did not decline; same-store sales increased by 7.1% (compared to just 3.9% last year), and even new stores in recently entered cities began to generate profits (with a 2.2% increase for the first time).
The membership base has also grown significantly, with 41.9 million members (an increase of nearly 40% from last year), contributing 60% of total revenue, indicating a high level of customer loyalty. The increased number of stores has helped reduce costs, and store operating profits have increased by 2.9%, proving that the strategy of opening more stores can indeed lead to higher profits.
2. New Markets Making a Big Impact: From the Northeast to the Northwest
The opening of the Domino's pizza store in Harbin saw customers lining up overnight, with sales on the first day reaching 700,000 yuan, breaking the global record for single-day sales at a single store. This success is not isolated; the simultaneous opening of two stores in Lanzhou also marked Domino's official entry into Gansu, the farthest-western province in China. The Chinese market is now not only the second-largest in terms of store numbers (after the United States) but also the most promising for new store growth, with all of the top 70 positions in the global ranking for first 30-day sales coming from Chinese stores. Domino's is quickly filling regional gaps, covering all three provinces in the Northeast and gradually entering the Northwest provinces, at an astonishing pace.
3. Supply Chain Support: Four Regional Centers Covering the Country
The rapid expansion of stores is supported by a robust supply chain. In August 2026, the Wuhan Smart Supply Chain Center was put into operation, a comprehensive facility for production, warehousing, and logistics that can produce 4,500 tons of core ingredients annually, ensuring the quality of pizzas through a cold chain system that covers Hubei, Hunan, Jiangxi, and Henan provinces. Together with the existing centers in North China, East China, and South China, these four regional centers now serve the entire country.
Next year, supply chain centers in Chengdu and Nanjing will be established, further ensuring that new stores can receive fresh ingredients promptly, without any delays due to supply chain issues.
4. Efficient Operations: New Stores Profit Quickly, with Delivery as a Key Strength
Domino's operational strength lies in its ability to open new stores quickly without compromising quality. The time it takes for new stores to become profitable has been significantly reduced, with consistent product and service quality regardless of the location. In the first half of the year, the progress of opening new stores reached 89% of the annual target, much faster than in the first quarter. Delivery services are a key differentiator, with the company offering a "30-minute delivery guarantee or a free pizza coupon for late deliveries," which has made it popular among customers. Delivery sales now account for more than 51.7% of total revenue, with an increase of 44.7% compared to the same period last year. This combination of reliable delivery and stable quality has helped Domino's establish a strong position in the pizza industry.
5. Balanced Strategy: Focusing on Both Major and Lesser-City Markets for Strong Resilience
Domino's urban strategy is well-balanced: it has 1,018 stores in lesser-tier cities, which drive growth, while 532 stores in major cities contribute to higher profits. This balanced approach allows the company to withstand market fluctuations, as the scale in lesser-tier cities can support performance during economic downturns, while the higher profits in major cities provide stability.
Overall, Domino's China's growth is not based on short-term success but on a comprehensive system that includes supply chain management, operations, customer loyalty, and delivery services. This model serves as a model for the global food and beverage industry, demonstrating how efficient operations and a strong supply chain can help a company quickly dominate a market and continue to generate profits.