Dino Polska - An Open Book Success in Food Retail
Dino Polska - An Open Book Success in Food Retail
Part Alimentation Couche-Tard (ATD) part Walmart (WMT) with clear expansion like Floor and Decor (FND)
Hi, sleep-well investors!
I am adding Dino Polska to the Sleep Well Portfolio, ticker DNP.WA or WSE.DNP. Please do your due diligence and consider becoming a premium member for wealth-creating content.
Why?
Executive summary
Sleep well ingredients
What can go wrong
Key competitors
Sleep well scores
Valuation
What to track
To check out all of my research, click the link below.
Executive summary
If Walmart and Alimentation Couche-Tard had a baby, it would be Dino Polska. One can recognize Dino’s frugality and expansion strategy in the suburbs in Walmart’s early days and the focus on the smaller convenience store model in Alimentation Couche-Tard (owner of Circle K). In the first 20 years on the stock market, $1 invested in Walmart would have returned $250 or 31% compounded annual growth rate (CAGR), and Alimentation Couch-Tard would have returned $155 or 28% CAGR. Dino is in the 7th year and has already returned $70 or 38% CAGR.
I didn’t expect to learn that wealth can be created in a hypercompetitive and capital-intensive sector like food retailing. What’s more intriguing is Dino’s success, built entirely in Poland, an economy with $700B GPD, 40x smaller than the US. Moreover, Dino is thriving despite being 5x smaller than Biedronka, the current market leader.
Digging deeper, I noticed three reasons why Dino fits my sleep-well requirements.
(i) Dino’s growth to 2406 stores has been entirely organic, with no debts, equity raises, complex franchise models, or M&As. Dino built internally and owns 90% of the real estate, which means -