Domino's Pizza Announces 2008 Financial Results and 2009 Outlook

Net income in the fourth quarter was $11.0 million, with domestic same store sales down 3.0% and international same store sales up 4.5%. This marked the 60th consecutive quarter (the 15th year) of International same store sales growth. The International division has grown to comprise over 40% of our global retail sales, and over 30% of the Company's consolidated income from operations in 2008.

  Fourth Quarter and Fiscal 2008 Highlights:



  (dollars in millions, except

   per share data)              Fourth     Fourth

                                Quarter    Quarter     Fiscal      Fiscal

                                of 2008    of 2007      2008        2007



  Net income                     $11.0      $16.2       $54.0       $37.9



  Weighted average diluted

   shares                   57,101,782 61,900,133  58,339,535  63,785,124



  Diluted earnings per

   share, as reported            $0.19      $0.26       $0.93       $0.59

  Items affecting

   comparability (see

   section below)                   $-     $(0.06)     $(0.18)      $0.44

  Diluted earnings per

   share, as adjusted            $0.19      $0.21       $0.75       $1.03





  --  Diluted EPS was $0.19 on an as reported and as adjusted basis for the

      fourth quarter, down $0.07 from the as reported prior year period. 

      However, excluding items affecting comparability from the prior year

      period, diluted EPS declined $0.02, primarily due to lower operating

      income from domestic operations and the negative impact of foreign

      currency.  (See the Items Affecting Comparability section and the

      Comments on Regulation G section.)



  --  Global Retail Sales were up 2.7% in the fourth quarter and up 2.4% for

      the year, excluding foreign currency translation impacts. This was

      driven by strong International same store sales and store growth.





                                                 Fourth

                                                 Quarter          Fiscal

                                                 of 2008           2008

  Same store sales growth: (versus prior

   year period)

    Domestic Company-owned stores                 (2.2)%          (2.2)%

    Domestic franchise stores                     (3.1)%          (5.2)%

    Domestic stores                               (3.0)%          (4.9)%

    International stores                         + 4.5%          + 6.2%



  Global retail sales growth: (versus prior

   year period)

    Domestic stores                               (3.9)%          (4.7)%

    International stores                          (5.7)%         +10.3%

    Total                                         (4.7)%         + 1.4%



  Global retail sales growth: (versus prior

   year period and excluding foreign currency

   translation impacts)

    Domestic stores                               (3.9)%          (4.7)%

    International stores                         +11.1%          +12.8%

    Total                                        + 2.7%          + 2.4%







                                Domestic

                                Company- Domestic  Total    Inter-

                                 owned   Franchise Domestic national

                                 Stores  Stores    Stores   Stores   Total



  Store counts:

    Store count at September 7,

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

    Openings                         2       50       52      118      170

    Closings                        (3)     (88)     (91)     (32)    (123)

    Transfers                      (22)      22        -        -        -

    Store count at December 28,

     2008                          489    4,558    5,047    3,726    8,773

    Fourth quarter 2008 net

     growth                        (23)     (16)     (39)      86       47

    Fiscal 2008 net growth         (82)     (26)    (108)     257      149

David A. Brandon, Domino's Chairman and Chief Executive Officer, said: "Throughout 2008, we battled many external challenges while laying the groundwork for better future results. I have mixed feelings about our overall results. I am disappointed with our domestic sales performance and the pressure this created on our short-term profits. However, I am excited about the aggressive steps we have taken to improve our franchise system, expand our menu and lunch day-part, and strengthen our marketing. And, our International business continues to expand and grow. The current economic crisis has been challenging and at times, painful. However, I am convinced we will come out of this a stronger brand, stronger system of stores, and a stronger company."

Brandon continued, "As it relates to the current situation, there seems to be no consensus on where the general economy is going, making forecasting riskier than ever before. Our plan is to protect and strengthen our business in 2009. We will make decisions with a long-term view, while executing a conservative 2009 budget plan. We are well positioned to protect our Company, our balance sheet and retain our talented team members as we face the challenges that will continue in our domestic economy."

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