1079458--2/23/2007--DOMINOS_PIZZA

related topics

{debt, indebtedness, cash}

{cost, operation, labor}

{operation, international, foreign}

{stock, price, operating}

{acquisition, growth, future}

{customer, product, revenue}

{competitive, industry, competition}

{product, market, service}

{financial, litigation, operation}

{stock, price, share}

{personnel, key, retain}

{property, intellectual, protect}

{loss, insurance, financial}

{provision, law, control}

{regulation, change, law}

{cost, regulation, environmental}

Risks relating to our business and industry The pizza category is highly competitive, and such competition could adversely affect our operating results. If we fail to successfully implement our growth strategy, which includes opening new domestic and international stores, our ability to increase our revenues and operating profits could be adversely affected. The food service market is affected by consumer preferences and perceptions. Changes in these preferences and perceptions may lessen the demand for our products, which would reduce sales and harm our business. Increases in food, labor and other costs could adversely affect our profitability and operating results. Our substantial indebtedness could adversely affect our business and limit our ability to plan for or respond to changes in our business. We may be unable to generate sufficient cash flow to satisfy our significant debt service obligations, which would adversely affect our financial condition and results of operations. The terms of the Domino s, Inc. senior secured credit facility and senior subordinated notes have restrictive terms and our failure to comply with any of these terms could put us in default, which would have an adverse effect on our business and prospects. We expect to fund the equity tender offer, repay our existing senior secured credit facility, finance the debt tender offer and pay all related fees and expenses by drawing on the bridge loan facility and to refinance the bridge loan facility with new securitized debt. If we are unable to repay or refinance the bridge loan facility or the securitized debt, it could have a significant negative effect on our financial condition. Our bridge loan facility will have restrictive terms, and our failure to comply with any of these terms could put us in default, which would have an adverse effect on our business and prospects. The indenture governing the securitized debt will restrict the cash flow from the entities subject to the securitization to any of our other entities, and upon the occurrence of certain events, cash flow would be further restricted. We do not have long-term contracts with many of our suppliers, and as a result they could seek to significantly increase prices or fail to deliver. Shortages or interruptions in the supply or delivery of fresh food products could adversely affect our operating results. Any prolonged disruption in the operations of any of our dough manufacturing and distribution centers could harm our business. We face risks of litigation from customers, franchisees, employees and others in the ordinary course of business, which diverts our financial and management resources. Any adverse litigation or publicity may negatively impact our financial condition and results of operations. Loss of key personnel or our inability to attract and retain new qualified personnel could hurt our business and inhibit our ability to operate and grow successfully. Our international operations subject us to additional risk. Such risks and costs may differ in each country in which we do business, and may cause our profitability to decline due to increased costs. Fluctuations in the value of the U.S. dollar in relation to other currencies may lead to lower revenues and earnings. We may not be able to adequately protect our intellectual property, which could harm the value of our brand and branded products and adversely affect our business. Our earnings and business growth strategy depends on the success of our franchisees, and we may be harmed by actions taken by our franchisees that are outside of our control. We are subject to extensive government regulation, and our failure to comply with existing or increased regulations could adversely affect our business and operating results. Our current insurance coverage may not be adequate, insurance premiums for such coverage may increase and we may not be able to obtain insurance at acceptable rates, or at all. Our annual and quarterly financial results are subject to significant fluctuations depending on various factors, many of which are beyond our control, and if we fail to meet the expectations of securities analysts or investors, our share price may decline significantly. Our current principal stockholders have significant influence over us, and they could delay, deter or prevent a change of control or other business combination or otherwise cause us to take action with which you may disagree. Our common stock price could be subject to significant fluctuations and/or may decline. After the completion of the equity tender offer, our common stock may have a significantly smaller public float, which could result in reduced liquidity for our common stock and greater volatility in the market price of our common stock.

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1079458--2/23/2007--DOMINOS_PIZZA_INC