Domino’s Pizza is effectively winding down its German venture. It is selling the master franchise to a newly formed JV alongside Domino’s Pizza Enterprises. It will be a 33% shareholder in the JV for 4-6 years. At the same time the JV is acquiring the market leader in the territory, Joey’s with 212 stores for 6.4x EV/EBITDA. We estimate the transaction to be c.6% EBIT accretive for FY16 but feel the move negatively impacts the mid-long term growth thesis which was reliant on a successful 100% ow ....
