Domino's Pizza Announces Third Quarter 2008 Financial Results

  Third Quarter Highlights:



  (dollars in millions,

   except per share data)   Third       Third     First Three   First Three

                          Quarter of  Quarter of  Quarters of   Quarters of

                             2008        2007        2008          2007



  Net income                 $10.1        $11.0        $42.9        $21.7



  Weighted average

   diluted shares       58,042,743   63,971,505   58,859,220   64,534,801



  Diluted earnings per

   share, as reported        $0.17        $0.17        $0.73        $0.34

  Items affecting

   comparability

   (see section below)      $(0.05)          $-       $(0.17)       $0.49

  Diluted earnings

   per share, as adjusted    $0.13        $0.17        $0.56        $0.82

Diluted EPS was $0.17 on an as-reported basis for the third quarter, flat from the as-reported prior year period. However, excluding items affecting comparability, diluted EPS declined $0.04, primarily due to lower operating income from domestic operations.

                                     Third Quarter       Third Quarter

                                        of 2008             of 2007

  Same store sales growth: (versus

   prior year period)

    Domestic Company-owned stores        (3.4)%             +0.8%

    Domestic franchise stores            (6.4)%             (2.0)%

    Domestic stores                      (6.1)%             (1.6)%

    International stores                 +5.4%              +8.3%



  Global retail sales growth: (versus

   prior year period)

    Domestic stores                      (5.8)%             (0.4)%

    International stores                +14.1%             +20.4%

    Total                                +2.4%              +7.2%







                    Domestic      Domestic     Total

                 Company-owned   Franchise   Domestic  International

                    Stores         Stores     Stores      Stores      Total

  Store counts:

   Store count at

    June 15, 2008      515          4,592      5,107       3,564      8,671

   Openings              1             34         35          84        119

   Closings              -            (56)       (56)         (8)       (64)

   Transfers            (4)             4          -           -          -

   Store count at

    September 7, 2008  512          4,574      5,086       3,640      8,726

   Third quarter 2008

    net growth          (3)           (18)       (21)         76         55

   Trailing four

    quarters net

    growth             (53)             3        (50)        266        216

David A. Brandon, Domino's Chairman and Chief Executive Officer, said: "A key component of our turnaround plan is the renewal of our brand - including significantly expanding our menu, improving our existing products, entering new day parts, increasing store traffic and energizing our franchise system. Reversing negative trends in the current environment is very tough. Our operators face the powerful forces of high commodity prices, consumers who are reluctant to spend, and a credit crunch that has slowed domestic new store growth, re-investment in stores, and our ability to expedite the turnover of poor-performing franchisees. Despite these macroeconomic challenges, we believe in our turnaround plan for our domestic business and are encouraged by the initial results of many of our new initiatives. Internationally, we continue to experience strong sales and continued expansion. Most important, our strong cash flows remain the mainstay of our business model. We believe 'cash is king' in today's uncertain market conditions."

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