DMP - Domino's Pizza Enterprises
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Re: AFR: IT firm alleges Domino's Pizza stole its GPS tracking technology
But we do have a patent, and Domino's know it!
But we do have a patent, and Domino's know it!
Re: AFR: IT firm alleges Domino's Pizza stole its GPS tracking technology
If they can reverse engineer it, patent won't help.
If they copied it directly, patent will help.
If they can reverse engineer it, patent won't help.
If they copied it directly, patent will help.
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The SSS continues to amaze me. The stores aren't even that big.
skc
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It's all takeaway though, isn't it?
Who knows what processes they can do in the kitchen and off-site to improve production (which shouldn't be a bottle-neck).
Then it's a case of distribution and marketing which is supposedly their strong suit.
But seriously... who would have guessed that selling pizza online could be so successful?!
Their guidance is a bit weak but I think the market by tomorrow will look past that and be expecting 2 more upgrades through the year.
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True, but they must have made some massive leaps in productivity to support the sss they've had over the last few years. Or maybe they've got people ordering for breakfast? Do they sell a breakfast pizza?
Not me! I still can't get my head around it. It's not like the pizzas are cheap, or good. Every reporting season they knock me over.
tinhat
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Convenience. I was renovating a unit with my brother earlier in the year. There was a Dominos four minutes down the road. We were too busy to worry and waste time over lunch. Probably every second day I would order a pizza over the internet using my phone, send my brother down the road to pick it up and we would be eating it 15 minutes later. $10 for a pizza that we shared for lunch. Too easy. So cheap. Nothing fancy but it got the job done (a bit like the renovation). The ultimate convenience food in the modern era. Look at the fat laden crap toppings they sell, and that tells you something about the market and their position. It's fast junk food. Yet, their pizza dough is a better product than Pizza Hut and they are so damned efficient.
I'm still kicking myself that I have never bought shares in this mob.
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Well I suppose it was only going to be a matter of time before Frank decided to call it a day having "Dominos the Dominators" move in a few months ago. Goliath - 1000+ vs. David - 0
What chance have you got when they are selling large pizzas (with conditions) for just $5...
skc
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And just when you thought that DMP's share price is somewhat expensive, it goes up another 20% in 2 days.
To put things in perspective... they made an acquisition for 89 pizza stores in France for EUR 31.5m (+3.5m earn out), or about A$55m. Their market cap in response increased by ~$700m.
They said the deal would be 4% EPS accretive... which is to say that it's worth ~3cps. That 3cps turns into $8 per share increase in the share price.
Yes, there was also some update around growth plans in Europe. But these sort of magnification is simply astounding.
To put things in perspective... they made an acquisition for 89 pizza stores in France for EUR 31.5m (+3.5m earn out), or about A$55m. Their market cap in response increased by ~$700m.
They said the deal would be 4% EPS accretive... which is to say that it's worth ~3cps. That 3cps turns into $8 per share increase in the share price.
Yes, there was also some update around growth plans in Europe. But these sort of magnification is simply astounding.
GPS Technology Dispute: Bullying, Hacking, Cyber stalking and Corporate Espionage
News.com.au published this article last Saturday (22-1-2016):
Domino’s in bitter legal battle with Precision Tracking over GPS technology
From the introductory paragraph:
"BULLYING, hacking, cyber stalking and corporate espionage.
It sounds like the beginnings of a crime novel, but it’s actually the claims arising in a long-running and bizarre dispute between Domino’s and a tiny Sydney-based IT company.
Since 2014, Precision Tracking has been engaged in a bitter patent battle with Domino’s, which it accuses of reverse engineering its GPS tracking technology after an aborted partnership.
Precision Tracking develops and licenses a service called Delivery Command, a driver-tracking and store management service used by about 50 businesses, including Crust Pizza and, until recently, Suppertime."
For those who have not been following, I have previously posted here about the dispute between Domino's Pizza Enterprises and my company concerning GPS driver tracking technology:
https://www.aussiestockforums.com/forums/showthread.php?t=1192&p=876020&viewfull=1#post876020
Here is a link to our story:
Domino's GPS Driver Tracker - who really invented it?
Also, here are a couple of articles in the Australian media last year:
Australian Financial Review: IT firm alleges Domino's Pizza stole its GPS tracking technology
SmartCompany: “Betrayed” small business claims Domino’s stole its slice of technology in latest copycat claims
Disclosure: I am the R&D Manager at Precision Tracking Pty. Ltd, the Sydney IT firm referenced in the article and am also a director of the company
News.com.au published this article last Saturday (22-1-2016):
Domino’s in bitter legal battle with Precision Tracking over GPS technology
From the introductory paragraph:
"BULLYING, hacking, cyber stalking and corporate espionage.
It sounds like the beginnings of a crime novel, but it’s actually the claims arising in a long-running and bizarre dispute between Domino’s and a tiny Sydney-based IT company.
Since 2014, Precision Tracking has been engaged in a bitter patent battle with Domino’s, which it accuses of reverse engineering its GPS tracking technology after an aborted partnership.
Precision Tracking develops and licenses a service called Delivery Command, a driver-tracking and store management service used by about 50 businesses, including Crust Pizza and, until recently, Suppertime."
For those who have not been following, I have previously posted here about the dispute between Domino's Pizza Enterprises and my company concerning GPS driver tracking technology:
https://www.aussiestockforums.com/forums/showthread.php?t=1192&p=876020&viewfull=1#post876020
Here is a link to our story:
Domino's GPS Driver Tracker - who really invented it?
Also, here are a couple of articles in the Australian media last year:
Australian Financial Review: IT firm alleges Domino's Pizza stole its GPS tracking technology
SmartCompany: “Betrayed” small business claims Domino’s stole its slice of technology in latest copycat claims
Disclosure: I am the R&D Manager at Precision Tracking Pty. Ltd, the Sydney IT firm referenced in the article and am also a director of the company
skc
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Re: GPS Technology Dispute: Bullying, Hacking, Cyber stalking and Corporate Espionage
If DMP did indeed infringe upon the patent of your company, then I hope that justice will prevail and they pay the damages and ongoing license fees
However, it's difficult for the average outsider to form a view on this story.... who's right and what not. So I think your company's attempt to approach DMP shareholders to raise the issue to their management is likely a waste of time.
The actual financial impact to DMP, whether there'd be a fine or they need to pay ongoing fees, is likely to be immaterial to DMP. Would DMP's reputation as an innovative company take a hit as a result? My guess is that it's somewhat immaterial as well.
Anyhow, thanks for sharing the story and best of luck to a just outcome.
If DMP did indeed infringe upon the patent of your company, then I hope that justice will prevail and they pay the damages and ongoing license fees
However, it's difficult for the average outsider to form a view on this story.... who's right and what not. So I think your company's attempt to approach DMP shareholders to raise the issue to their management is likely a waste of time.
The actual financial impact to DMP, whether there'd be a fine or they need to pay ongoing fees, is likely to be immaterial to DMP. Would DMP's reputation as an innovative company take a hit as a result? My guess is that it's somewhat immaterial as well.
Anyhow, thanks for sharing the story and best of luck to a just outcome.
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The most loved darling is really starting to look spoilt.
Looks like Euro may have plenty of printing ahead of it which means the Ausi should be much stronger against it so buying French Pizza business at this time really does seem a bit of a stretch.
PE 80! Give me a break!
SEK the 2nd.
Looks like Euro may have plenty of printing ahead of it which means the Ausi should be much stronger against it so buying French Pizza business at this time really does seem a bit of a stretch.
PE 80! Give me a break!
SEK the 2nd.
Re: GPS Technology Dispute: Bullying, Hacking, Cyber stalking and Corporate Espionage
Here is a link to Precision Tracking's patent application that Domino's is challenging:
2014253558: Vehicular light box and computerised system for monitoring one or more vehicles
Click on 'eDossier' and you will see the history of submissions.
In a nutshell, Domino's is challenging the granting of our patent by claiming that they themselves are the actual inventors of what we invented or alternatively, co-inventors.
We consider Domino's claim of inventorship to be meritless and absurd - the actions of desperate people.
Several Domino's staff have prepared and submitted statutory declarations to support their claims of inventorship, but those declarations have not yet been made public.
Having read these statutory declarations, we have found that they contradict each other in various ways, e.g. they disagree on the locations where key events took place and they disagree over who was present at the in-person meeting where they allegedly disclosed inventive concepts to us.
Naturally, we have pointed out these apparent contradictions of theirs as part of our submissions to the Commissioner of Patents.
As of this date, three rounds of evidence have been submitted to the Commissioner and we are now waiting to be informed of the date of the hearing where the final determination will be made.
If the patent dispute does not go Domino's way and we retain inventorship, we will have the right to recover damages from Domino's for patent infringement.
It is also our understanding that if Domino's chooses not to obtain a license to use our patent, they would need to modify their GPS Driver Tracker to avoid infringing our patent.
In our view, this would require such radical changes, that it would effectively make GPS Driver Tracker inoperable and unfit for its purpose. This could mean Domino's stores having to shut down and dismantle the system altogether.
Even if Domino's is granted co-inventorship, this could also have significant impact:
In that case, it's our understanding that Domino's would be free to continue using the patented technology in corporate-owned stores but would require our consent to license it to their franchisees, which make up the vast majority of Domino's stores.
The financial impact would need to be accurately assessed but I note the following:
The market clearly sees GPS tracking as adding considerable value to Domino's as a company. DMP's market capitalisation increased by about $230 million on the 5th of May 2015, right after they announced the introduction of GPS Driver Tracker.
In Domino's August 2015 media release, CEO Don Meij stressed the importance of GPS tracking technology to Domino's business:
I do not feel that Domino's management has been forthcoming to its shareholders about the risk to earnings associated with this patent dispute. In fact, quite the opposite:
I quote from Domino's solicitor letter from 19th May 2015 that refused my request to obtain DMP shareholder contact details. I note that this refusal is contrary to Domino's obligations under Section 173 of the Corporations Act 2001 and is now being investigated by ASIC:
To all DMP shareholders here - I would love to know if you agree with Domino's opinion.
Share your views here.
Here is a link to Precision Tracking's patent application that Domino's is challenging:
2014253558: Vehicular light box and computerised system for monitoring one or more vehicles
Click on 'eDossier' and you will see the history of submissions.
In a nutshell, Domino's is challenging the granting of our patent by claiming that they themselves are the actual inventors of what we invented or alternatively, co-inventors.
We consider Domino's claim of inventorship to be meritless and absurd - the actions of desperate people.
Several Domino's staff have prepared and submitted statutory declarations to support their claims of inventorship, but those declarations have not yet been made public.
Having read these statutory declarations, we have found that they contradict each other in various ways, e.g. they disagree on the locations where key events took place and they disagree over who was present at the in-person meeting where they allegedly disclosed inventive concepts to us.
Naturally, we have pointed out these apparent contradictions of theirs as part of our submissions to the Commissioner of Patents.
As of this date, three rounds of evidence have been submitted to the Commissioner and we are now waiting to be informed of the date of the hearing where the final determination will be made.
If the patent dispute does not go Domino's way and we retain inventorship, we will have the right to recover damages from Domino's for patent infringement.
It is also our understanding that if Domino's chooses not to obtain a license to use our patent, they would need to modify their GPS Driver Tracker to avoid infringing our patent.
In our view, this would require such radical changes, that it would effectively make GPS Driver Tracker inoperable and unfit for its purpose. This could mean Domino's stores having to shut down and dismantle the system altogether.
Even if Domino's is granted co-inventorship, this could also have significant impact:
In that case, it's our understanding that Domino's would be free to continue using the patented technology in corporate-owned stores but would require our consent to license it to their franchisees, which make up the vast majority of Domino's stores.
The financial impact would need to be accurately assessed but I note the following:
The market clearly sees GPS tracking as adding considerable value to Domino's as a company. DMP's market capitalisation increased by about $230 million on the 5th of May 2015, right after they announced the introduction of GPS Driver Tracker.
In Domino's August 2015 media release, CEO Don Meij stressed the importance of GPS tracking technology to Domino's business:
I do not feel that Domino's management has been forthcoming to its shareholders about the risk to earnings associated with this patent dispute. In fact, quite the opposite:
I quote from Domino's solicitor letter from 19th May 2015 that refused my request to obtain DMP shareholder contact details. I note that this refusal is contrary to Domino's obligations under Section 173 of the Corporations Act 2001 and is now being investigated by ASIC:
To all DMP shareholders here - I would love to know if you agree with Domino's opinion.
Share your views here.
And another 13%+ this period.... Wow. It's not like they are increasing their prices either? It seems to be all productivity / volume gains...
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It's such a great buy before announcements and sell twice as much on them! Very short term!!
Hats off to them regardless having a real crack. Pizza my god!
Hats off to them regardless having a real crack. Pizza my god!
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Considering they attribute the growth partly as the success of Cheaper Every Day, it seems like it is all about stuffing more pizza down people's throats. Don Meij has to be one of the smartest CEO's in the world the way he has managed to take an old, semi-commoditised product, utilise technology and revolutionise the whole business of selling pizza.
I continue to be amazed by the whole DMP story.
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Considering they attribute the growth partly as the success of Cheaper Every Day, it seems like it is all about stuffing more pizza down people's throats. Don Meij has to be one of the smartest CEO's in the world the way he has managed to take an old, semi-commoditised product, utilise technology and revolutionise the whole business of selling pizza.
I continue to be amazed by the whole DMP story.
Agree mate. I was just talking to a friend earlier saying how DMP has got to be in the top 1% of management worldwide.
5 years ago you could have asked me what I thought about Domino's (Aus segment) and I'd say mature business with probably only the ability to grow SSS at about 2-6% tops. The success of the tech rollouts is just phenomenal...and to complement it, they have done well with cost management along the way...
Oh and not to mention the global expansion. How many Aus companies have pulled successful international forays off?
I am just waiting to see what Japan's SSS do once they start implementing the GPS tracker mid 2016. If it's anything like what we've seen here then the growth story will keep chugging for a while yet. Some of the goals they have set for delivery times, 10-12 mins, are just outrageous. Crazy stuff.
As for the quality of the pizza - the advertising informs me that it is getting better. They do give a bit of chatter on improving ingredients quality and cutting out preservatives over the next few years, so quality is obviously not being ignored. I am yet to try it though...well at least in the last 10 years or so
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http://m.smh.com.au/business/retail...ystyle-video-being-aired-20160226-gn4esy.html
Plot thickens in relation to these gps posts. I'm interested in this now
Plot thickens in relation to these gps posts. I'm interested in this now
Last Friday, the NSW Supreme Court lifted the injunction that Domino's had obtained to prevent film maker Phoebe Stuart-Carberry from publishing her documentary.
Everyone can now see her documentary at ExposeDominos.com
On Saturday morning, Channel 7's Weekend Sunrise interviewed Phoebe as well as the directors of Precision Tracking (of which I am one). We chatted with host Sally Bowrey about our battle with Domino's.
Disclosure: I am the R&D Manager at Precision Tracking Pty. Ltd and am also a director of the company. My company is involved in a patent dispute with Domino's over GPS tracking technology. I was one of the people interviewed for this documentary video.