DPC Dash adds 84 stores in Q3: Domino’s China transactions rise, but same-store sales still fall

DPC Dash (1405.HK), the master franchisee for Domino’s in China, released its third-quarter business update on 12 October 2026. Its store network continued to expand and same-store transaction volumes grew, but same-store sales growth remained negative. For international readers assessing this franchise market, the update is about more than the pace of store openings: it also highlights the distinction between transaction volumes, average transaction values and sales performance.

Network grows by 84 stores in Q3, with new-city markets accounting for around 44%

As at 30 September 2026, DPC Dash had 1,634 stores across 87 cities, a net increase of 84 stores on the previous quarter. It also entered 12 new cities. Under the company’s market classifications, its initial-city markets had 908 stores, while new-city markets had 726, accounting for around 44% of the total network.

The company said it continued to pursue its strategy of expanding both within existing cities and into new markets. In the first nine months of 2026, it added a net 319 stores and entered 27 new cities. New-city markets remained the main driver of store network growth.

DPC Dash is the exclusive master franchisee for Domino’s Pizza in mainland China, Hong Kong and Macao. These figures cover the company’s overall network and should not be interpreted as Hong Kong store numbers or local market growth rates. Readers assessing the brand’s scale should keep this geographical scope in mind.

Full-year store opening target secured, but not all stores are open

The company said that, by the end of September, it had secured 100% of its full-year target of around 350 net new stores through a combination of stores already open, under construction and contracted. This was up from around 89% at the end of June.

That progress covers three different stages: stores already trading, stores still being built and stores for which contracts have been signed. Securing the target therefore does not mean that all of the approximately 350 net new stores planned for the year have opened. The net increase actually achieved by the end of September remained 319 stores for the first nine months.

For investors tracking franchise expansion, contracted stores indicate the future opening pipeline, whereas actual openings reflect the operating footprint already in place. The two should not be conflated.

Why are same-store sales still falling when transaction volumes are recovering?

The most notable operating signal in the third quarter was the divergence between same-store transaction volumes and same-store sales. The company reported positive growth in same-store transaction volumes. Supported by a series of marketing initiatives, average transaction values continued to stabilise and edged up from the second quarter of 2026 as subsidies on third-party aggregator platforms became more measured.

However, a quarter-on-quarter improvement does not amount to a year-on-year recovery. The company explained that, although transaction volumes had grown year on year and average transaction values were showing signs of gradual recovery, transaction values remained below their third-quarter 2025 level. Same-store sales growth therefore remained negative.

This means that an increase in orders or transactions alone may not give a complete picture of sales performance. Equally, a decline in same-store sales does not capture the improvement in transaction volumes. When reviewing a franchise brand’s operating data, readers should consider transaction volumes, average transaction values and same-store sales together. They should also distinguish quarter-on-quarter comparisons from year-on-year figures rather than directly comparing movements measured against different baselines.

Membership reaches 45.2 million as digital channels remain a priority

As at 30 September 2026, the company had 45.2 million members, compared with 32.9 million a year earlier. Over the preceding 12 months, around 19.9 million new customers placed their first orders through the company’s own channels and third-party channels.

Total membership and the number of customers placing a first order are different measures. They cannot simply be added together, nor should every first-time customer be treated as a new member of the company’s own platform. The company said its expanding membership programme continued to support its digital strategy, customer engagement and the development of its own platform ecosystem.

Store development, high-quality pizza offering strong value for money, the delivery experience and digital capabilities remain the company’s four strategic priorities. This quarter’s update shows an expanding network and growing customer base alongside average transaction values that have yet to return to the year-earlier level.

The practical takeaway: when assessing a franchise brand, look beyond new store openings and total membership. First check which markets the data covers and whether stores are already trading. Then read transaction volumes, transaction values and same-store sales together to gain a clearer picture of changes in operating performance.