What Domino's Pizza, Inc. told the SEC could break it.

Domino's buys substantially all of its US pizza cheese from a single supplier (Dec 2024 agreement through Dec 2029) and the majority of US meat toppings from a single supplier (contract through Dec 2027); disruption at either could affect its supply chain segment.

“We currently purchase our U.S. pizza cheese from a single supplier. Under our December 2024 agreement which expires in December 2029, our U.S. supplier agreed to provide the Company with an uninterrupted supply of cheese and the Company agreed to purchase substantially all of its U.S. pizza cheese from this supplier during the five-year term of the contract.”

Domino's cheese pricing is formula-based on the Chicago Mercantile Exchange cheddar block price; as cheese and other food-commodity prices fluctuate, its supply chain segment revenues and margin percentages move (dollar margins held via markup).

“franchisees for cheese is formula-based, with the Chicago Mercantile Exchange cheddar block price as the primary component, plus a supply chain markup. As cheese prices fluctuate, our revenues and margin percentages in our supply chain segment also fluctuate; however, actual supply chain dollar margins remain unchanged.”

Domino's international operations rely on a smaller number of master franchisees — its largest, Domino's Pizza Enterprises (ASX: DMP), operated 3,524 stores (24% of international and 16% of global store count) across 12 markets; a key franchisee's failure or insolvency would adversely affect results.

“As of December 28, 2025, our largest franchisee based on store count, Domino's Pizza Enterprises (DMP: ASX), operated 3,524 stores in 12 international markets, which accounted for approximately 24% of our international store count and 16% of our global store count.”