Domino's Pizza Announces Third Quarter 2009 Financial Results

2009-10-13
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  • Dominos Pizza Net income as-reported was up 76.6% versus the prior year, driven by gains on the extinguishment of debt, improved operating margins, lower interest expense and international store growth.

    Year-to-date, the Company has repurchased approximately $161 million in principal amount of its long-term debt. As of the quarter end, the Company had nearly $49 million of unrestricted cash and cash equivalents.

    During the third quarter, domestic same store sales were flat while international same store sales grew 2.7%. The quarter also marked the 63rd consecutive quarter of same store sales growth in Domino's international division.

      Third Quarter Highlights:

    (dollars in Third Third First Three First Three
    millions, except Quarter Quarter Quarters Quarters
    per share data) of 2009 of 2008 of 2009 of 2008
    ------- ------- ----------- -----------
    Net income $17.8 $10.1 $56.1 $42.9

    Weighted average
    diluted shares 57,981,137 58,042,743 57,680,513 58,859,220

    Diluted earnings per
    share, as-reported $0.31 $0.17 $0.97 $0.73
    Items affecting
    comparability (see
    section below) $(0.14) $(0.05) $(0.40) $(0.17)
    ------ ------ ------ ------
    Diluted earnings per
    share, as adjusted $0.17 $0.13 $0.57 $0.56
    ===== ===== ===== =====



    -- Diluted EPS was $0.31 on an as-reported basis for the third quarter,
    up $0.14 from the prior year period. Excluding items affecting
    comparability, diluted EPS increased $0.04, primarily due to operating
    margin improvements and lower interest expense primarily from recent
    debt extinguishments. This was offset in part by the negative impact
    of foreign currency exchange rates on international operations. (See
    the Items Affecting Comparability section and the Comments on
    Regulation G section.)


    -- Global Retail Sales were down 1.9% in the third quarter, or up 3.9%
    when excluding the impact of foreign currency.




    Third Third
    Quarter Quarter
    of 2009 of 2008
    --------- ---------
    Same store sales growth: (versus prior
    year period)
    Domestic Company-owned stores (2.0)% (3.4)%
    Domestic franchise stores +0.3% (6.4)%
    ------- -----
    Domestic stores 0.0% (6.1)%
    === =====
    International stores +2.7% +5.4%
    ===== ======


    Global retail sales growth: (versus prior
    year period)
    Domestic stores (1.6)% (5.8)%
    International stores (2.1)% +14.1%
    ----- -----
    Total (1.9)% +2.4%
    ===== ======

    Global retail sales growth: (versus prior
    year period, excluding foreign currency impact)
    Domestic stores (1.6)% (5.8)%
    International stores +10.4% +12.2%
    ----- -----
    Total + 3.9% + 1.6%
    ====== ======



    Domestic
    Company- Domestic Total
    owned Franchise Domestic International
    Stores Stores Stores Stores Total
    -------- --------- -------- ------------- -----
    Store counts:
    Store count at
    June 14, 2009 483 4,484 4,967 3,906 8,873
    Openings - 17 17 49 66
    Closings (2) (45) (47) (6) (53)
    -- --- --- -- ---
    Store count at
    September 6,
    2009 481 4,456 4,937 3,949 8,886
    === ===== ===== ===== =====
    Third quarter
    2009 net growth (2) (28) (30) 43 13
    == === === == ==
    Trailing four
    quarters net
    growth (31) (118) (149) 309 160
    === ==== ==== === ===


    David A. Brandon, Domino's Chairman and Chief Executive Officer, said: "We did a good job of anticipating the economic downturn in the U.S. and we cut costs before the economy weakened. We have been intensely focused on controlled overhead spending throughout the past three years. As a result, we are now in a position to invest in our business; invest in our franchisees; invest in our marketing; invest in our technology; and expand our global footprint. We're making excellent progress... and we're in a great position to take full advantage of all of the opportunities we will encounter when domestic consumer spending improves and we return to a more normalized economic environment."

    Brandon added, "Our proven, steady, and reliable business model consistently generates on average free cash flow in excess of $1 million per-week that we will continue to deploy in a manner that creates significant shareholder value."

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

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