Domino's Pizza Announces Second Quarter 2010 Financial Results

Domino's Pizza, Inc. (NYSE: DPZ), announced strong results for all its operating units for the second quarter ended June 20, 2010. During the quarter, the Company's domestic same store sales rose 8.8% versus the year ago period on sustained positive consumer response to the Company's improved pizza and continued focus on operational excellence. Robust sales volume also drove positive results in the Company's domestic supply chain business. International same store sales grew 6.2% in the second quarter, the 66th consecutive quarter of positive same store sales for the division. The Company repurchased $20.4 million of its debt during the quarter, and an additional $10.0 million subsequent to the quarter, for a total of $279.6 million in repurchases of its fixed rate notes since the beginning of 2009. This healthy second quarter performance resulted in adjusted EPS of 33 cents, up 57% from the adjusted EPS amount in the prior year period.

J. Patrick Doyle, Domino's President and Chief Executive Officer, said: "Our strong sales momentum in the U.S. is evidence of the success of our improved pizza and focus on operations. The increased sales were not just driven by trial, but by repeat orders from our new larger customer base. I continue to be bullish on the performance of our U.S. business. Meanwhile, despite the tough global economy, our international business continues to thrive - proving the strength of our international franchise business model."

Doyle added, "The positive results we're driving are also yielding strong free cash flow, enabling us to repurchase debt at a rapid rate and accelerate our earnings per share growth."

Second Quarter Highlights:

• Revenues were up 14.5% for the second 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 second quarter was up $8.1 million, or 55.7%, versus the prior year period, driven primarily by improved domestic sales and operating margins, international sales and store growth, lower interest expense and a lower effective tax rate.  These improvements were offset by a reduction in pre-tax gains on debt repurchases which were approximately $11.4 million lower in the second quarter versus the prior year period.

• Diluted EPS was 37 cents on an as reported basis for the second quarter. Excluding items affecting comparability, diluted EPS was 33 cents versus 21 cents in the prior year quarter, an increase of 12 cents, or 57%, primarily due to the aforementioned higher net income. (See the Items Affecting Comparability section and the Comments on Regulation G section.)  

• Global Retail Sales were up 12.5% in the second quarter, or up 10.3% when excluding foreign currency impact.

Reader Comments:

Be the first to leave a comment for this article

Tweet