Domino's Pizza Announces Second Quarter 2009 Financial Results

The international division continued its strong performance, posting its 62nd consecutive quarter of same store sales growth. Net income as-reported was down 22.4% versus the prior year, due primarily to the negative impacts of foreign currency, gains on the sale of Company-owned stores in 2008 and expenses incurred in connection with changes made to the Company's stock option plans, offset in part by gains on the extinguishment of debt.

  Second Quarter Highlights:



  (dollars in millions,       Second      Second     First Two     First Two

   except per share data)     Quarter     Quarter     Quarters     Quarters

                              of 2009     of 2008      of 2009      of 2008

                            ---------    ---------    ---------    ---------

  Net income                   $14.5       $18.7        $38.3        $32.8



  Weighted average

  diluted shares          57,737,247  58,789,987   57,524,565   59,443,922



  Diluted earnings per

   share, as-reported          $0.25       $0.32        $0.67        $0.55



  Items affecting

   comparability (see

   section below)             $(0.04)     $(0.10)      $(0.26)      $(0.13)

                              ------      ------       ------       ------

  Diluted earnings per

   share, as adjusted          $0.21       $0.22        $0.41        $0.43

                               =====       =====        =====        =====





  --  Diluted EPS was $0.25 on an as-reported basis for the second quarter,

      down $0.07 from the as-reported diluted EPS in the prior year period,

      due primarily to the aforementioned decrease in net income.  However,

      excluding items affecting comparability, diluted EPS declined $0.01,

      primarily due to the negative impact of foreign currency exchange

      rates on international royalty revenues and lower operating income

      from domestic store operations, offset in part by improvements in

      operating performance in the Company's international and supply chain

      business units. (See the Items Affecting Comparability section and the

      Comments on Regulation G section.)





  --  Global Retail Sales were down 4.7% in the second quarter, or up 3.8%

      when excluding the impact of foreign currency.

                                                 Second          Second

                                                 Quarter         Quarter

                                                 of 2009         of 2008

                                                ---------       ---------

  Same store sales growth: (versus prior

   year period)

    Domestic Company-owned stores                 (3.3)%           (1.1)%

    Domestic franchise stores                     (0.4)%           (5.9)%

                                                  -----           -----

    Domestic stores                               (0.7)%           (5.4)%

                                                  =====           =====

    International stores                          + 4.1%          + 7.0%

                                                  =====           =====



  Global retail sales growth: (versus prior

   year period)

    Domestic stores                               (2.0)%           (5.0)%

    International stores                          (8.0)%          +19.6%

                                                  -----           -----

    Total                                         (4.7)%          + 4.7%

                                                  =====           =====



  Global retail sales growth:

  (versus prior year period and excluding

   foreign currency impact)

    Domestic stores                               (2.0)%           (5.0)%

    International stores                         +11.0 %          +13.9%

                                                 -----            -----

    Total                                        + 3.8%           + 2.5%

                                                 =====            =====



                      Domestic     Domestic    Total

                      Company-    Franchise   Domestic  International

                   owned Stores     Stores     Stores      Stores(1)   Total

                   ------------   ---------   --------  -------------  -----

  Store counts:

    Store count at

     March 22, 2009         489      4,498      4,987       3,742     8,729

    Openings                  -         22         22         172       194

    Closings                 (5)       (37)       (42)         (8)      (50)

    Transfers                (1)         1          -           -         -

                             --          -          -           -         -

    Store count at          483      4,484      4,967       3,906     8,873

     June 14, 2009          ===      =====      =====       =====     =====

    Second quarter

     2009 net growth         (6)       (14)       (20)        164       144

                             ==        ===        ===         ===       ===

    Trailing four           (32)      (108)      (140)        342       202

     quarters net growth    ===       ====       ====         ===       ===



  (1) The International Stores openings reported in the above table

  benefited from the conversion of 86 stores in Spain to Domino's Pizza

  stores in the second quarter of 2009.

David A. Brandon, Domino's Chairman and Chief Executive Officer, said: "I'm putting this quarter in the "win" column for Domino's Pizza. I'm proud of my team and our accomplishment of emerging as a leader during tough times. Our franchisees are engaged and have embraced the expansion of our products and day parts. The predictability of our model continues to be a plus in an unpredictable landscape."

Brandon added, "Our international business continues to thrive despite the dampening effect of foreign exchange. We are driving positive sales at a robust rate...and we've done so for more than the past fifteen years. We are consistently opening new stores and new markets, driving future growth for Domino's Pizza."

Logos, product and company names mentioned are the property of their respective owners.

Reader Comments:

Be the first to leave a comment for this article

Tweet