SUPPLY CHAIN OF DOMINOS

Dominos operates in three business segments: Domestic stores:- The domestic stores segment consists of the domestic franchise operations, which oversee the network of 4,558 franchise stores located in the contiguous United States, and the domestic Company-owned store operations, which operate the network of 489 Company-owned stores located in the contiguous United States; Domestic supply chain:- The domestic supply chain segment operates 17 regional dough manufacturing and food supply chain centers, one supply chain center providing equipment and supplies to certain of the domestic and international stores and one vegetable processing supply chain center; and International:- The international segment oversees the network of 3,726 international franchise stores in more than 60 countries. The international segment also distributes food to a limited number of markets from six dough manufacturing and supply chain centers in Alaska, Hawaii and Canada (fthe). Number of stores Mexico 592 United Kingdom 512 Australia 412 South Korea 305 Canada 296 India 227 Japan 181 France 140 Taiwan 120 Turkey 106 The franchise program As of December 28, 2008, the 4,558 domestic franchise stores Were owned and operated by the 1,216 domestic franchisees. The success of the franchise formula, which enables franchisees to benefit from the brand name with a relatively low initial capital investment, has attracted a large number of motivated entrepreneurs as franchisees. As of December 28, 2008, the average domestic franchisee operated approximately three to fthe stores and had been in the franchise system for tDominoslve years. At the same time, only six of the domestic franchisees operated more than 50 stores, including the largest domestic franchisee, which operates 144 stores. Third-party suppliers Dominos have maintained active relationships of 15 years or more with more than half of the major suppliers. The suppliers are required to meet strict quality standards to ensure food safety. Dominos review and evaluate the suppliers quality assurance programs through, among other actions, onsite visits, third party audits and product evaluations to ensure compliance with the standards. Dominos believe that the length and quality of the relationships with suppliers provides us with priority service and quality products at competitive prices. Dominos believe that two factors have been critical to maintaining longlasting

relationships and keeping the purchasing costs low. First, Dominos are one of the largest domestic volume purchasers of pizza-related products such as flthe, cheese, sauce and pizza boxes, which allows us to maximize leverage with the suppliers when items are put out for bid on a scheduled basis. Second, Dominos use a combination of single-source and multi-source procurement strategies. Each supply category is evaluated along a number of criteria including value of purchasing leverage, consistency of quality and reliability of supply to determine the appropriate number of suppliers. Dominos currently purchase the pizza cheese from a single supplier. In 2007, the Company entered into a new arrangement with this supplier. Under this arrangement, the supplier agreed to provide an uninterrupted supply of cheese and the Company agreed to a five year pricing period during which it agreed to purchase all of its primary pizza cheese for the Companys United States stores from this supplier or, alternatively, pay to the supplier an amount reflecting any benefit previously received by the Company under the new pricing terms. The pricing schedule is directly correlated to the CME block cheddar price. The majority of the meat toppings come from a single supplier under a contract that began in July 2008 and expires in July 2010. The Crunchy Thin Crust dough is currently sourced by another single supplier pursuant to requirements contracts that expire in 2009. Dominos have the right to terminate these arrangements for quality failures and for uncured breaches. Dominos believe that alternative suppliers for all of these ingredients are available, and all of the pizza boxes, sauces and other ingredients are sourced from various suppliers. While Dominos may incur additional costs if Dominos are required to replace any of the suppliers, Dominos do not believe that such additional costs would have a material adverse effect on the business. Dominos also entered into a multi-year agreement with Coca-Cola effective January 1, 2003 for the contiguous United States. The contract provides for Coca-Cola to be the exclusive beverage supplier and expires on the later of December 31, 2009 or such time as a minimum number of cases of Coca-Cola products are purchased by us. Dominos continually evaluate each supply category to determine the optimal sourcing strategy. It has not experienced any significant shortages of supplies or any delays in receiving our food or beverage inventories, restaurant supplies or products. The current economic environment has created additional financial pressures for some of the suppliers; however it does not currently anticipate disruptions in our supplies. Prices charged by suppliers are subject to fluctuation, and dominos has historically been able to pass increased costs and savings on to stores. It may periodically enter into financial instruments to manage the risk from changes in commodity prices. Dominos does not engage in speculative transactions nor does it holds or issue financial instruments for trading purposes.