Domino's Pizza Announces First Quarter 2010 Financial Results

Domestic Same Store Sales Up 14.3%

Domino's Pizza, Inc. ( DPZ) today announced results for the first quarter ended March 28, 2010. The Company's domestic same store sales grew 14.3% as a result of increased store traffic from the successful introduction of its New and Inspired Pizza. International same store sales grew 4.2% in the first quarter, marking the 65th consecutive quarter of same store sales growth for this division. First quarter as reported diluted EPS was 41 cents.  On an as adjusted basis, diluted EPS was 35 cents for the first quarter, a 75% increase over the first quarter of 2009. During the first quarter, the Company repurchased $60 million in principal amount of its fixed rate senior notes, or $249.2 million in principal amount over the past 18 months.

J. Patrick Doyle, Domino's President and Chief Executive Officer, said: "A remarkably better pizza, and our honesty in how we told consumers about it, is paying off with a revitalized overall category – with Domino's leading that trend. We couldn't be more pleased with the success of our New and Inspired Pizza."

Doyle added, "Our international division kept up its phenomenal growth trajectory again this quarter, with continued success in our existing markets, along with new markets expected to open in Europe, Asia and Latin America yet in 2010. I think we have by far the best international story in the sector."

First Quarter Highlights:

• Revenues were up 18.4% for the first quarter versus the prior year period, due primarily to higher volumes and higher commodity prices in supply chain, higher same store sales in both domestic and international stores and store count growth in international markets.

• Net Income in the first quarter was up $0.7 million, or 3.2%, versus the prior year period, driven primarily by improved sales and operating margins, international store growth and lower interest expense.  These improvements were offset by a reduction in pre-tax gains on debt repurchases which were approximately $15.0 million lower in the first quarter versus the prior year period.

• Diluted EPS was 41 cents on an as reported basis for the first quarter. Excluding items affecting comparability, diluted EPS was 35 cents versus 20 cents in the prior year quarter, an increase of 15 cents, or 75%, primarily due to higher domestic and international same store sales, operating margin improvements in all divisions and lower interest expense. (See the Items Affecting Comparability section and the Comments on Regulation G section.)  

• Global Retail Sales were up 17.4% in the first quarter, or up 12.1% when excluding the impact of foreign currency.

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