My bearish opinion is that the bad news will not stop. DMP and...

My bearish opinion is that the bad news will not stop.

DMP and their franchisees are paying to modern award rates since January and whilst management are making a brave face, franchisees are seeing 3-hour minimum shifts, loadings for work after 9pm, Saturday and Sunday surcharges and over 50$/h for adults on public holidays as a massive burden to their bottom line. That can only be countered by less aggressive Deals (read higher Gross Margin), which may be detrimental to sales, especially since PizzaHut seems to have a revival.

I believe 2018 will see a remarkable increase in stores needing "assistance" and increased numbers of stores on the market with very hesitant banks for wannabe franchisees.

DPZ will have to reinvent their business model, but that is not easy if top Management is busy putting out fires all over the place with grumpy (read struggling) franchisees, the threat of a commission, and shareholders wanting to see blood if the aggressive growth slows.

I see the DPZ fairly valued at a current level.