Domino's Pizza Announces Fourth Quarter and Fiscal 2022 Financial Results
Global retail sales growth (excluding foreign currency impact) of 5.2% for the fourth quarter; 3.9% growth for fiscal 2022
Domino's Pizza, Inc. (NYSE: DPZ) announced results for the fourth quarter and fiscal 2022. Global retail sales, excluding the negative impact of foreign currency, grew 5.2% in the fourth quarter of 2022 and grew 3.9% in fiscal 2022. Without adjusting for the impact of foreign currency, global retail sales declined 1.1% in the fourth quarter of 2022 and declined 1.3% in fiscal 2022.
U.S. same store sales grew 0.9% during the fourth quarter of 2022 and declined 0.8% in fiscal 2022. International same store sales (excluding foreign currency impact) grew 2.6% during the fourth quarter of 2022 and grew 0.1% in fiscal 2022. The Company had fourth quarter global net store growth of 361 stores, comprised of 43 net U.S. store openings and 318 net international store openings. The Company had 456 gross store openings and 95 closures during the fourth quarter of 2022. In fiscal 2022, the Company had global net store growth of 1,032 stores, comprised of 126 net U.S. store openings and 906 net international store openings. The Company had 1,276 gross store openings and 244 closures during fiscal 2022.
Diluted EPS for the fourth quarter of 2022 was $4.43, an increase of 4.2% from diluted EPS of $4.25 in the fourth quarter of 2021. Diluted EPS for fiscal 2022 was $12.53, a decrease of 7.5% from diluted EPS of $13.54 in fiscal 2021. Diluted EPS for fiscal 2021 was negatively impacted by expenses associated with the Company's April 2021 recapitalization transaction (the "2021 Recapitalization"). Diluted EPS for fiscal 2022 declined 7.9% from diluted EPS, as adjusted of $13.60 in fiscal 2021. Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information.
During the fourth quarter of 2022, the Company refranchised 114 U.S. Company-owned stores in Arizona and Utah for $41.1 million (the "2022 Store Sale"). In connection with the 2022 Store Sale, the Company recorded a $21.2 million pre-tax gain on the sale of the related assets and liabilities, which included a $4.3 million reduction in goodwill.
Subsequent to the end of the fourth quarter of 2022, on February 21, 2023, the Company's Board of Directors approved a 10% increase to the quarterly dividend and a $1.21 per share quarterly dividend was declared on its outstanding common stock for shareholders of record as of March 15, 2023 to be paid on March 30, 2023.
"We pride ourselves on being a work-in-progress brand and there is no better way to describe this period in our history," said Russell Weiner, Domino's Chief Executive Officer. "The Domino's system has a lot to be proud of while also having opportunities to address. We experienced significant pressure on our U.S. delivery business in 2022 and focused our efforts on creating solutions. We also drove continued momentum in our U.S. carryout business and achieved strong international store growth. Over half of our orders in the U.S. now come through the carryout channel, and we are #1 in both the delivery and carryout QSR pizza segments. Our brand and company are better positioned than ever to win in the marketplace and create meaningful value for our shareholders."
Fourth Quarter and Fiscal 2022 Highlights (Unaudited):
| (in millions, except share and per share data) | Fourth | Fourth | Fiscal | Fiscal | ||||||||||||
| Net income | $ | 158.3 | $ | 155.7 | $ | 452.3 | $ | 510.5 | ||||||||
| Weighted average diluted shares | 35,715,408 | 36,668,295 | 36,093,754 | 37,691,351 | ||||||||||||
| Diluted EPS | $ | 4.43 | $ | 4.25 | $ | 12.53 | $ | 13.54 | ||||||||
| Items affecting comparability (1) | — | — | — | 0.06 | ||||||||||||
| Diluted EPS, as adjusted (1) | $ | 4.43 | $ | 4.25 | $ | 12.53 | $ | 13.60 | ||||||||
| (1) | Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information. |
- Revenues increased $49.0 million, or 3.6%, in the fourth quarter of 2022 as compared to the fourth quarter of 2021, due primarily to higher supply chain revenues attributable to increases in market basket pricing to stores. The Company's market basket pricing to stores increased 12.5% during the fourth quarter of 2022 as compared to the fourth quarter of 2021. The increase in revenues in the fourth quarter of 2022 was also a result of higher U.S. franchise royalties and fees and higher U.S. franchise advertising revenues driven primarily by the 2022 Store Sale and net store growth. The increase in U.S. franchise advertising revenues was also driven by approximately $6.0 million less in advertising incentives related to certain brand promotions in the fourth quarter of 2022 as compared to the fourth quarter of 2021. International franchise royalties and fees revenues increased due to international retail sales growth (excluding foreign currency impact) of 7.5%, but the resulting increase in international franchise revenues was partially offset by the negative impact of changes in foreign currency exchange rates of approximately $10.4 million. These increases in revenues were partially offset by lower U.S. Company-owned store revenues due to the 2022 Store Sale.
- Income from Operations increased $26.1 million, or 11.7%, in the fourth quarter of 2022 as compared to the fourth quarter of 2021 due primarily to the $21.2 million pre-tax gain recorded in connection with the 2022 Store Sale as well as lower general and administrative expenses due primarily to lower labor costs. This increase was partially offset by lower U.S. Company-owned store and supply chain gross margins.
- Net Income increased $2.6 million, or 1.7%, in the fourth quarter of 2022 as compared to the fourth quarter of 2021. This increase was driven primarily by higher income from operations due to the pre-tax gain recorded in connection with the 2022 Store Sale and lower general and administrative expenses, each as discussed above. Additionally, a lower provision for income taxes in the fourth quarter of 2022 also contributed to the increase in net income. The Company's provision for income taxes decreased $9.0 million in the fourth quarter of 2022 due to a lower effective tax rate. The effective tax rate decreased to 16.6% during the fourth quarter of 2022 as compared to 20.6% in the fourth quarter of 2021, driven by the release of certain unrecognized tax benefits related to one of the Company's foreign subsidiaries, and to a lesser extent, a 0.3 percentage point change in the impact of excess tax benefits from equity-based compensation, which are recorded as a reduction to the income tax provision. These increases in net income were partially offset by the $34.3 million pre-tax unrealized gain recorded in the fourth quarter of 2021 on the Company's investment in DPC Dash Ltd ("DPC Dash"), the Company's master franchisee that owns and operates Domino's Pizza stores in China, resulting from the observable change in price from the valuation of the Company's additional $9.1 million investment in DPC Dash made in the fourth quarter of 2021.
- Diluted EPS was $4.43 in the fourth quarter of 2022 versus $4.25 in the fourth quarter of 2021, representing a $0.18, or 4.2%, increase from the prior year quarter. The increase in diluted EPS was driven by higher net income in the fourth quarter of 2022 as compared to the fourth quarter of 2021. The gain resulting from the 2022 Store Sale contributed an incremental $0.46 to the Company's diluted EPS in the fourth quarter of 2022 as compared to the prior year quarter. Diluted EPS in the fourth quarter of 2022 also benefited from a lower weighted average diluted share count, resulting from the Company's share repurchases during the trailing four quarters. These increases were partially offset by the impact of the unrealized gain on the Company's investment in DPC Dash in the fourth quarter of 2021 which contributed an incremental $0.68 to the Company's diluted EPS in the fourth quarter of 2021 as compared to the fourth quarter of 2020.
The tables below outline certain statistical measures utilized by the Company to analyze its performance (unaudited). Refer to Comments on Regulation G below for additional details.
| Fourth | Fourth | Fourth | ||||
| Same store sales growth: (versus prior year period) | ||||||
| U.S. Company-owned stores (1) | + 3.4 % | (7.3) % | + 8.1 % | |||
| U.S. franchise stores (1) | + 0.8 % | + 1.5 % | + 11.4 % | |||
| U.S. stores | + 0.9 % | + 1.0 % | + 11.2 % | |||
| International stores (excluding foreign currency impact) | + 2.6 % | + 1.8 % | + 7.3 % | |||
| Global retail sales growth: (versus prior year period) | ||||||
| U.S. stores | + 2.7 % | (2.6) % | + 22.8 % | |||
| International stores | (4.5) % | + 2.2 % | + 20.7 % | |||
| Total | (1.1) % | (0.2) % | + 21.7 % | |||
| Global retail sales growth: (versus prior year period, | ||||||
| U.S. stores | + 2.7 % | (2.6) % | + 22.8 % | |||
| International stores | + 7.5 % | + 4.5 % | + 19.0 % | |||
| Total | + 5.2 % | + 1.0 % | + 20.9 % | |||
| Global retail sales growth: (versus prior year period, | ||||||
| U.S. stores | + 2.7 % | + 4.6 % | + 14.3 % | |||
| International stores | + 7.5 % | + 13.2 % | + 9.9 % | |||
| Total | + 5.2 % | + 9.0 % | + 12.0 % |
| Fiscal | Fiscal | Fiscal | ||||
| Same store sales growth: (versus prior year period) | ||||||
| U.S. Company-owned stores (1) | (2.6) % | (3.6) % | + 11.0 % | |||
| U.S. franchise stores (1) | (0.7) % | + 3.9 % | + 11.5 % | |||
| U.S. stores | (0.8) % | + 3.5 % | + 11.5 % | |||
| International stores (excluding foreign currency impact) | + 0.1 % | + 8.0 % | + 4.4 % | |||
| Global retail sales growth: (versus prior year period) | ||||||
| U.S. stores | + 1.3 % | + 4.3 % | + 17.6 % | |||
| International stores | (3.8) % | + 16.9 % | + 7.5 % | |||
| Total | (1.3) % | + 10.4 % | + 12.5 % | |||
| Global retail sales growth: (versus prior year period, | ||||||
| U.S. stores | + 1.3 % | + 4.3 % | + 17.6 % | |||
| International stores | + 6.3 % | + 13.9 % | + 8.8 % | |||
| Total | + 3.9 % | + 8.9 % | + 13.2 % | |||
| Global retail sales growth: (versus prior year period, | ||||||
| U.S. stores | + 1.3 % | + 6.7 % | + 15.0 % | |||
| International stores | + 6.3 % | + 17.1 % | + 5.9 % | |||
| Total | + 3.9 % | + 11.7 % | + 10.4 % |
| (1) | As previously disclosed, during the first quarter of 2022, the Company purchased 23 U.S. franchised stores in Michigan from certain of its existing U.S. franchisees (the "2022 Store Purchase"). The same store sales growth for these stores is reflected in U.S. Company-owned stores in the fourth quarter and fiscal 2022. |
| U.S. | U.S. Franchise | Total | International | Total | ||||||
| Store counts: | ||||||||||
| Store count at September 11, 2022 | 402 | 6,241 | 6,643 | 12,876 | 19,519 | |||||
| Openings | 1 | 49 | 50 | 406 | 456 | |||||
| Closings | (3) | (4) | (7) | (88) | (95) | |||||
| Transfers (1) | (114) | 114 | — | — | — | |||||
| Store count at January 1, 2023 | 286 | 6,400 | 6,686 | 13,194 | 19,880 | |||||
| Fourth quarter 2022 net store growth (1) | (2) | 45 | 43 | 318 | 361 | |||||
| Fiscal 2022 net store growth (1) | 2 | 124 | 126 | 906 | 1,032 |
| (1) | Net store growth does not include the effect of transfers associated with the 2022 Store Purchase or the 2022 Store Sale. |
Financial Results Comparability
Financial results for the Company can be significantly affected by changes in its capital structure, its effective tax rate, adoption of new accounting pronouncements, store portfolio changes, calendar timing and other factors. The Company's recapitalization transactions have historically resulted in higher net interest expense due primarily to higher net debt levels, as well as the amortization of debt issuance costs associated with the repayment of certain of the Company's notes. Additionally, repurchases and retirements of shares of the Company's common stock pursuant to its share repurchase programs have historically reduced its weighted average diluted shares outstanding.
In addition to the above factors impacting comparability, the table below presents certain items related to the Company's 2021 Recapitalization transaction that affect comparability between the Company's 2022 and 2021 financial results (unaudited). Management believes that including such information is critical to an understanding of the Company's financial results for fiscal 2022 as compared to fiscal 2021. Refer to the Comments on Regulation G section below for additional details.
| Fourth Quarter Ended January 2, 2022 | Fiscal Year Ended January 2, 2022 | |||||||||||||||||||||||
| (in thousands, except per share data) | Pre-tax | After-tax | Diluted EPS | Pre-tax | After-tax | Diluted EPS | ||||||||||||||||||
| 2021 items affecting comparability: | ||||||||||||||||||||||||
| Recapitalization expenses: | ||||||||||||||||||||||||
| General and administrative expenses (1) | $ | — | $ | — | $ | — | $ | (509) | $ | (397) | $ | (0.01) | ||||||||||||
| Interest expense (2) | — | — | — | (309) | (241) | (0.01) | ||||||||||||||||||
| Debt issuance cost write-off (3) | — | — | — | (2,024) | (1,581) | (0.04) | ||||||||||||||||||
| Total of 2021 items | $ | — | $ | — | $ | — | $ | (2,842) | $ | (2,219) | $ | (0.06) | ||||||||||||
| (1) | Represents legal, professional and administrative fees incurred in connection with the Company's 2021 Recapitalization. | |
| (2) | Represents interest expense the Company incurred on its 2017 five-year fixed rate notes and 2017 five-year floating rate notes subsequent to the closing of the Company's 2021 Recapitalization, but prior to the repayment of the 2017 five-year fixed rate notes and 2017 five-year floating rate notes, resulting in the payment of interest on both the 2017 five-year fixed rate notes and 2017 five-year floating rate notes and the 2021 fixed-rate notes for a short period of time. | |
| (3) | Represents the write-off of debt issuance costs related to the extinguishment of the 2017 five-year fixed rate notes and 2017 five-year floating rate notes in connection with the Company's 2021 Recapitalization. |
Fiscal 2023 Guidance and Two-to Three-Year Outlook
As of the date of this release, the Company provided the following guidance for fiscal 2023 related to the impact of changes in foreign currency exchange rates on international franchise royalty revenues, capital expenditures, general and administrative expense, market basket pricing change and the effective tax rate, excluding excess tax benefits or deficiencies from equity-based compensation.
| Fiscal 2023 Guidance | ||
| Impact of changes in foreign currency exchange rates on international franchise royalty revenues | $(2.0) - $(6.0) million | |
| Capital expenditures | $90.0 - $100.0 million | |
| General and administrative expense | $425.0 - $435.0 million | |
| Market basket pricing change (versus 2022) (1) | + 3% - + 5% | |
| Effective tax rate, excluding excess tax benefits or deficiencies from equity-based compensation (1) | 22.0% - 24.0% |
| (1) | Refer to the Comments on Regulation G section below for additional details. |
In addition, given the current macro-economic headwinds that are impacting the Company's U.S. delivery business in particular, the Company is updating its two-to three-year outlook from 6% to 10% global retail sales growth, excluding foreign currency impact to 4% to 8% global retail sales growth, excluding foreign currency impact and global net unit growth from 6% to 8% to 5% to 7%. The Company expects results for fiscal 2023 to come in towards the low-end of the ranges for both metrics. The Company looks forward to providing more details at an Investor Day that will be held before the end of calendar 2023.
| Previous | Updated | |||
| Global retail sales growth, excluding foreign currency impact | 6% − 10% | 4% − 8% | ||
| Global net unit growth | 6% − 8% | 5% − 7% |
Liquidity
As of January 1, 2023, the Company had approximately:
- $60.4 million of unrestricted cash and cash equivalents;
- $5.02 billion in total debt; and
- $277.8 million of available borrowing capacity under its 2021 and 2022 variable funding notes, net of letters of credit issued of $42.2 million.
Net cash provided by operating activities was $475.3 million during fiscal 2022. The Company invested $87.2 million in capital expenditures during fiscal 2022. Free cash flow, as reconciled below to net cash provided by operating activities, as determined under accounting principles generally accepted in the United States of America ("GAAP"), was approximately $388.1 million during fiscal 2022 (refer to Comments on Regulation G below for additional details).
| (in thousands) | Fiscal Year Ended | |||
| Net cash provided by operating activities | $ | 475,317 | ||
| Capital expenditures | (87,234) | |||
| Free cash flow | $ | 388,083 | ||
TABLES TO FOLLOW
| Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
| Fiscal Quarter Ended | ||||||||||||||||
| January 1, | % of | January 2, | % of | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| U.S. Company-owned stores | $ | 117,025 | $ | 141,227 | ||||||||||||
| U.S. franchise royalties and fees | 177,008 | 166,937 | ||||||||||||||
| Supply chain | 852,527 | 800,858 | ||||||||||||||
| International franchise royalties and fees | 92,204 | 90,968 | ||||||||||||||
| U.S. franchise advertising | 153,467 | 143,223 | ||||||||||||||
| Total revenues | 1,392,231 | 100.0 | % | 1,343,213 | 100.0 | % | ||||||||||
| Cost of sales: | ||||||||||||||||
| U.S. Company-owned stores | 97,989 | 113,411 | ||||||||||||||
| Supply chain | 782,375 | 723,601 | ||||||||||||||
| Total cost of sales | 880,364 | 63.2 | % | 837,012 | 62.3 | % | ||||||||||
| Gross margin | 511,867 | 36.8 | % | 506,201 | 37.7 | % | ||||||||||
| General and administrative | 130,755 | 9.4 | % | 140,290 | 10.4 | % | ||||||||||
| U.S. franchise advertising | 153,467 | 11.0 | % | 143,223 | 10.7 | % | ||||||||||
| Refranchising gain | (21,173) | (1.5) | % | — | 0.0 | % | ||||||||||
| Income from operations | 248,818 | 17.9 | % | 222,688 | 16.6 | % | ||||||||||
| Other income | — | 0.0 | % | 34,258 | 2.5 | % | ||||||||||
| Interest expense, net | (59,033) | (4.3) | % | (60,777) | (4.5) | % | ||||||||||
| Income before provision for income taxes | 189,785 | 13.6 | % | 196,169 | 14.6 | % | ||||||||||
| Provision for income taxes | 31,483 | 2.2 | % | 40,484 | 3.0 | % | ||||||||||
| Net income | $ | 158,302 | 11.4 | % | $ | 155,685 | 11.6 | % | ||||||||
| Earnings per share: | ||||||||||||||||
| Common stock – diluted | $ | 4.43 | $ | 4.25 | ||||||||||||
| Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
| Fiscal Year Ended | ||||||||||||||||
| January 1, | % of | January 2, | % of | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| U.S. Company-owned stores | $ | 445,810 | $ | 478,976 | ||||||||||||
| U.S. franchise royalties and fees | 556,269 | 539,883 | ||||||||||||||
| Supply chain | 2,754,742 | 2,560,977 | ||||||||||||||
| International franchise royalties and fees | 295,007 | 298,036 | ||||||||||||||
| U.S. franchise advertising | 485,330 | 479,501 | ||||||||||||||
| Total revenues | 4,537,158 | 100.0 | % | 4,357,373 | 100.0 | % | ||||||||||
| Cost of sales: | ||||||||||||||||
| U.S. Company-owned stores | 378,018 | 374,104 | ||||||||||||||
| Supply chain | 2,510,534 | 2,295,027 | ||||||||||||||
| Total cost of sales | 2,888,552 | 63.7 | % | 2,669,131 | 61.3 | % | ||||||||||
| Gross margin | 1,648,606 | 36.3 | % | 1,688,242 | 38.7 | % | ||||||||||
| General and administrative | 416,524 | 9.2 | % | 428,333 | 9.8 | % | ||||||||||
| U.S. franchise advertising | 485,330 | 10.7 | % | 479,501 | 11.0 | % | ||||||||||
| Refranchising gain | (21,173) | (0.5) | % | — | 0.0 | % | ||||||||||
| Income from operations | 767,925 | 16.9 | % | 780,408 | 17.9 | % | ||||||||||
| Other income | — | 0.0 | % | 36,758 | 0.8 | % | ||||||||||
| Interest expense, net | (195,092) | (4.3) | % | (191,461) | (4.3) | % | ||||||||||
| Income before provision for income taxes | 572,833 | 12.6 | % | 625,705 | 14.4 | % | ||||||||||
| Provision for income taxes | 120,570 | 2.6 | % | 115,238 | 2.7 | % | ||||||||||
| Net income | $ | 452,263 | 10.0 | % | $ | 510,467 | 11.7 | % | ||||||||
| Earnings per share: | ||||||||||||||||
| Common stock – diluted | $ | 12.53 | $ | 13.54 | ||||||||||||
| Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| January 1, | January 2, | |||||||
| (In thousands) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 60,356 | $ | 148,160 | ||||
| Restricted cash and cash equivalents | 191,289 | 180,579 | ||||||
| Accounts receivable, net | 257,492 | 255,327 | ||||||
| Inventories | 81,570 | 68,328 | ||||||
| Prepaid expenses and other | 37,287 | 27,242 | ||||||
| Advertising fund assets, restricted | 162,660 | 180,904 | ||||||
| Total current assets | 790,654 | 860,540 | ||||||
| Property, plant and equipment, net | 302,235 | 324,065 | ||||||
| Operating lease right-of-use assets | 219,202 | 210,702 | ||||||
| Investments | 125,840 | 125,840 | ||||||
| Other assets | 164,290 | 150,669 | ||||||
| Total assets | $ | 1,602,221 | $ | 1,671,816 | ||||
| Liabilities and stockholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 54,813 | $ | 55,588 | ||||
| Accounts payable | 89,715 | 91,547 | ||||||
| Operating lease liabilities | 34,877 | 37,155 | ||||||
| Advertising fund liabilities | 157,909 | 173,737 | ||||||
| Other accrued liabilities | 199,307 | 232,714 | ||||||
| Total current liabilities | 536,621 | 590,741 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt, less current portion | 4,967,420 | 5,014,638 | ||||||
| Operating lease liabilities | 195,244 | 184,471 | ||||||
| Other accrued liabilities | 92,001 | 91,502 | ||||||
| Total long-term liabilities | 5,254,665 | 5,290,611 | ||||||
| Total stockholders' deficit | (4,189,065) | (4,209,536) | ||||||
| Total liabilities and stockholders' deficit | $ | 1,602,221 | $ | 1,671,816 | ||||
| Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| Fiscal Year Ended | ||||||||
| January 1, | January 2, | |||||||
| (In thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 452,263 | $ | 510,467 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 80,251 | 72,923 | ||||||
| Refranchising gain | (21,173) | — | ||||||
| Loss on sale/disposal of assets | 1,813 | 1,189 | ||||||
| Amortization of debt issuance costs | 5,645 | 7,509 | ||||||
| Provision for deferred income taxes | 253 | 1,988 | ||||||
| Non-cash compensation expense | 28,709 | 28,670 | ||||||
| Excess tax benefits from equity-based compensation | (2,169) | (18,911) | ||||||
| Provision for losses on accounts and notes receivable | 3,536 | 659 | ||||||
| Unrealized gain on investments | — | (36,758) | ||||||
| Changes in operating assets and liabilities | (56,316) | 41,245 | ||||||
| Changes in advertising fund assets and liabilities, restricted | (17,495) | 45,225 | ||||||
| Net cash provided by operating activities | 475,317 | 654,206 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (87,234) | (94,172) | ||||||
| Proceeds from sale of assets | 41,089 | 16 | ||||||
| Purchase of franchise operations and other assets | (6,814) | — | ||||||
| Purchase of investments | — | (49,082) | ||||||
| Other | (722) | 515 | ||||||
| Net cash used in investing activities | (53,681) | (142,723) | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of long-term debt | 120,000 | 1,850,000 | ||||||
| Repayments of long-term debt and finance lease obligations | (175,676) | (910,212) | ||||||
| Proceeds from exercise of stock options | 3,312 | 19,682 | ||||||
| Purchases of common stock | (293,740) | (1,320,902) | ||||||
| Tax payments for restricted stock upon vesting | (10,720) | (6,820) | ||||||
| Payments of common stock dividends and equivalents | (157,531) | (139,399) | ||||||
| Cash paid for financing costs | (1,594) | (14,938) | ||||||
| Other | — | (244) | ||||||
| Net cash used in financing activities | (515,949) | (522,833) | ||||||
| Effect of exchange rate changes on cash | (963) | (316) | ||||||
| Change in cash and cash equivalents, restricted cash and cash equivalents | (95,276) | (11,666) | ||||||
| Cash and cash equivalents, beginning of period | 148,160 | 168,821 | ||||||
| Restricted cash and cash equivalents, beginning of period | 180,579 | 217,453 | ||||||
| Cash and cash equivalents included in advertising fund assets, restricted, | 161,741 | 115,872 | ||||||
| Cash and cash equivalents, restricted cash and cash equivalents and | 490,480 | 502,146 | ||||||
| Cash and cash equivalents, end of period | 60,356 | 148,160 | ||||||
| Restricted cash and cash equivalents, end of period | 191,289 | 180,579 | ||||||
| Cash and cash equivalents included in advertising fund assets, restricted, | 143,559 | 161,741 | ||||||
| Cash and cash equivalents, restricted cash and cash equivalents and cash and | $ | 395,204 | $ | 490,480 | ||||
SOURCE Domino's Pizza, Inc.
