Domino's Pizza Announces 2007 Financial Results

International same store sales growth of 9.5% during the fourth quarter marked the 56th consecutive quarter of International same store sales growth. The income from International reached nearly 30% of the Company's consolidated income from operations in 2007.

Fourth Quarter and Fiscal 2007 Highlights:

  (dollars in millions,

   except per share data)         Fourth     Fourth

                                  Quarter    Quarter

                                    of         of        Fiscal     Fiscal

                                   2007       2006        2007       2006



  Net income                        $16.2      $31.0       $37.9     $106.2



  Weighted average diluted

   shares                      61,900,133 63,697,961  63,785,124 64,541,079



  Diluted earnings per share,

   as reported                      $0.26      $0.49       $0.59      $1.65

  Items affecting

   comparability (see section

   below)                          $(0.06)        $-       $0.44     $(0.09)

  Diluted earnings per share,

   as adjusted                      $0.21      $0.49       $1.03      $1.56

- Net income was down 47.9% for the fourth quarter and 64.3% for the full year versus the prior year periods, driven primarily by increased interest expense from higher borrowings under the Company's new debt structure and, to a lesser extent, a decrease in domestic supply chain margins resulting from lower volumes and lower domestic Company-owned store margins. This was offset in part by continued strong performance in International.

- Diluted EPS was $0.26 on an as-reported basis for the fourth quarter, down $0.23 from the as-reported prior year period. However, excluding items affecting comparability, diluted EPS declined $0.28. Diluted EPS on an as-reported basis was $0.59 for the full year 2007, down $1.06 from 2006 on an as-reported basis. Diluted EPS, as adjusted for the full year 2007 was $1.03, down 34.0% versus $1.56 for the full year 2006.

                                                       Fourth

                                                     Quarter of

                                                        2007     Fiscal 2007

  Same store sales growth: (versus prior year

   period)

    Domestic Company-owned stores                      (1.1)%       + 1.0 %

    Domestic franchise stores                          (3.9)%        (2.1)%

    Domestic stores                                    (3.5)%        (1.7)%

    International stores                              + 9.5%        + 6.7%



  Global retail sales growth: (versus prior year

   period)

    Domestic stores                                    (2.4)%        (0.5)%

    International stores                              +23.4%        +18.8%

    Total                                             + 7.4%        + 6.6%







                          Domestic      Domestic   Total     Inter-

                          Company-owned Franchise  Domestic  national

                          Stores        Stores     Stores    Stores   Total

  Store counts:

    Store count at

     September 9, 2007        565       4,571       5,136     3,374   8,510

    Openings                    6          64          70       104     174

    Closings                    -         (51)        (51)       (9)    (60)

    Store count at

     December 30, 2007        571       4,584       5,155     3,469   8,624

    Fourth quarter 2007 net

     growth                     6          13          19        95     114

    Fiscal 2007 net growth      -          12          12       246     258

David A. Brandon, Domino's Chairman and Chief Executive Officer, said: "The combination of unprecedented cost inflation and cautious consumer spending continues to create significant challenges for us in our domestic market. However, instead of worrying about external factors we cannot control, we continue to stay focused on those factors we can control. There isn't a challenge we face that won't be cured when we regain positive traffic growth in our domestic business. We are obsessively focused on improving our store operations, including our service levels, product consistency and brand image. And, we continue to adjust our marketing strategies in an effort to jumpstart traffic throughout our domestic system of stores."

Brandon continued: "Our international markets continue to grow as a percentage of Domino's overall sales and profits and has established a strong track record for reliable, vibrant growth. As our international business marks its 25th anniversary in 2008, I want to acknowledge the tremendous job our master franchisees have done over the years and highlight the important role this division will play in the future growth of our Company."

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