It seems that Domino's is not telling shareholders the full story about Franchisee earnings.
On page 20 of their Half Year Results presentation slides, which is titled "Franchisee Profitability", you will see:
But shareholders are not being told HOW MANY franchisees are making more than the average (also called the mean) and how many are making less than the average.
Neither are we being told the standard deviation (how spread out the earnings are relative to the mean).
In other words, how do we know that it's not just a minority of ANZ franchisees making the big bucks while the rest are languishing?
What would also be useful to know is the MEDIAN earnings for Australian/New Zealand franchisees.
To calculate the median value, all 738 ANZ stores would first be ranked from lowest to highest earnings and then the earnings of the middle store(s) (e.g. the average of stores 369 and 370) would be reported.
In my view, the median would help give people a better of idea of what they could expect to earn if they became Domino's franchisees.
Without information like this, I cannot see how shareholders can make an accurate judgement of Domino's business model.
DMP Price at posting:
$57.56 Sentiment: None Disclosure: Not Held
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