Domino's Pizza Announces Third Quarter 2023 Financial Results
Global retail sales growth (excluding foreign currency impact) of 4.9%; 5.1% (excluding foreign currency impact and closure of the Russia market) - U.S. same store sales decline of 0.6%
Domino's Pizza, Inc. (NYSE: DPZ) announced results for the third quarter of 2023. Global retail sales grew 4.9% in the third quarter of 2023, excluding the positive impact of foreign currency, and grew 5.1% in the third quarter of 2023, excluding the positive impact of foreign currency and the closure of the Russia market. Without adjusting for the impact of foreign currency, but excluding the closure of the Russia market, global retail sales grew 5.3% in the third quarter of 2023.
U.S. same store sales declined 0.6% during the third quarter of 2023. International same store sales (excluding foreign currency impact) grew 3.3% during the third quarter of 2023. Diluted EPS for the third quarter of 2023 was $4.18, an increase of 49.8% over the prior year quarter.
The Company had third quarter global net store decline of 8 stores, comprised of 27 net U.S. store openings and 35 net international store closures. The Company had 218 gross store openings and 226 gross store closures during the third quarter of 2023. Global and international net store decline reflects the closure of the remaining 143 net Domino's stores in Russia. Excluding the impact of the closure of the Russia market, the Company had third quarter global net store growth of 135 stores, comprised of 27 net U.S. store openings and 108 net international store openings.
During the third quarter of 2023, the Company's master franchisee that owned and operated Domino's Pizza® stores in Russia announced its intent to file for bankruptcy with respect to the stores in that market, and, as a result, the Company has excluded the impact of the Russia market from its fiscal 2023 statistical measures, including net store growth, global retail sales growth and global retail sales growth, excluding foreign currency impact. The Company has not received any royalties and fees from the operations of the Russia market subsequent to the Russian invasion of Ukraine in February 2022. For additional details, refer to the Russia Market Update and Comments on Regulation G sections included below.
Subsequent to the end of the third quarter of 2023, on October 10, 2023, the Company's Board of Directors declared a $1.21 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 15, 2023, to be paid on December 29, 2023.
The Company will host its Investor Day on December 7, 2023 at the Company's headquarters in Ann Arbor, Michigan.
"We continue to execute on our initiatives to drive sustainable growth in the U.S.," said Russell Weiner, Domino's Chief Executive Officer. "Our 'Summer of Service' initiative and the hard work of our franchisees and team members have brought delivery times back to pre-pandemic levels. Domino's Rewards is engaging more customers, and our integration with Uber's marketplace is on track. We are ready and excited to deliver the incremental orders both programs will bring in 2024 and beyond."
| Third Quarter Highlights (Unaudited): | ||||||||||||||||
| (in thousands, except share and per share data) | Third | Third | Three Fiscal | Three Fiscal | ||||||||||||
| Net income | $ | 147,676 | $ | 100,504 | $ | 361,826 | $ | 293,961 | ||||||||
| Weighted average diluted shares | 35,357,043 | 36,062,316 | 35,516,434 | 36,265,918 | ||||||||||||
| Diluted EPS | $ | 4.18 | $ | 2.79 | $ | 10.19 | $ | 8.11 | ||||||||
- Revenues decreased $41.2 million, or 3.9%, in the third quarter of 2023 as compared to the third quarter of 2022, primarily due to lower supply chain revenues and lower U.S. Company-owned store revenues. The decline in supply chain revenues was attributable to a decrease in the Company's market basket pricing to stores, as well as lower order volumes. The Company's market basket pricing to stores decreased 1.7% during the third quarter of 2023 as compared to the third quarter of 2022. U.S. Company-owned store revenues decreased as a result of the refranchising of 114 U.S. Company-owned stores in Arizona and Utah in the fourth quarter of 2022 (the "2022 Store Sale"); however, this decrease was partially offset by higher U.S. Company-owned same store sales. Higher global franchise royalty revenues resulting from global retail sales growth (excluding foreign currency impact) partially offset the decrease in revenues in the third quarter of 2023. U.S. franchise royalties and fees increased primarily due to an increase in fees paid by U.S. franchisees for the use of the Company's technology platforms, as well as U.S. retail sales growth attributable to the impact of the 2022 Store Sale, and, to a lesser extent, net store growth. International franchise royalties and fees also increased due to international same store sales growth (excluding foreign currency impact), as well as an increase in the average number of international franchised stores open during the period resulting from net store growth during the trailing four quarters, but this increase was partially offset by the negative impact of changes in foreign currency exchange rates of approximately $0.2 million.
- Income from Operations increased $13.0 million, or 7.4%, in the third quarter of 2023 as compared to the third quarter of 2022 primarily due to higher global franchise royalty revenues resulting from global retail sales growth (excluding foreign currency impact and closure of the Russia market) of 5.1%, as well as higher supply chain gross margin. These increases in income from operations were partially offset by higher general and administrative expenses driven by higher labor costs and the negative impact of changes in foreign currency exchange rates on international franchise royalties and fees of $0.2 million, consistent with the impact on revenues as discussed above.
- Net Income increased $47.2 million, or 46.9%, in the third quarter of 2023 as compared to the third quarter of 2022 primarily due to a $28.2 million pre-tax unrealized gain associated with the remeasurement of the Company's investment in DPC Dash Ltd ("DPC Dash"). This unrealized gain was recorded in other income in the Company's condensed consolidated statements of income. Higher income from operations also contributed to the increase in net income, as discussed above. Additionally, the Company's provision for income taxes decreased $3.4 million in the third quarter of 2023 due to a lower effective tax rate, partially offset by higher income before provision for income taxes. The effective tax rate decreased to 15.9% during the third quarter of 2023 as compared to 23.8% in the third quarter of 2022, driven in part by higher foreign tax credits and a 1.1 percentage point change in the impact of excess tax benefits from equity-based compensation, which are recorded as a reduction to the income tax provision. Lower net interest expense of $2.5 million resulting from higher interest income on cash equivalents also contributed to the increase in net income.
- Diluted EPS was $4.18 in the third quarter of 2023 versus $2.79 in the third quarter of 2022, representing a $1.39, or 49.8%, increase. This $1.39 increase was driven by the unrealized gain associated with the remeasurement of the Company's investment in DPC Dash of $0.59, a favorable tax rate impact of $0.39, improved operating results of $0.28, a lower weighted average diluted share count of $0.08 and lower net interest expense of $0.05.
The tables below outline certain statistical measures utilized by the Company to analyze its performance (unaudited). Refer to Comments on Regulation G below for additional details.
| Third | Third | Three Fiscal | Three Fiscal | |||||
| Same store sales growth: (versus prior year period) | ||||||||
| U.S. Company-owned stores | + 2.9 % | (1.9) % | + 5.2 % | (7.3) % | ||||
| U.S. franchise stores | (0.7) % | + 2.2 % | + 0.8 % | (1.2) % | ||||
| U.S. stores | (0.6) % | + 2.0 % | + 1.0 % | (1.6) % | ||||
| International stores (excluding foreign currency impact) | + 3.3 % | (1.8) % | + 2.6 % | (0.8) % | ||||
| Global retail sales growth: (versus prior year period) (1) | ||||||||
| U.S. stores | + 0.9 % | + 4.1 % | + 2.5 % | + 0.7 % | ||||
| International stores | + 9.8 % | (6.8) % | + 5.5 % | (3.5) % | ||||
| Total | + 5.3 % | (1.6) % | + 4.0 % | (1.5) % | ||||
| Global retail sales growth: (versus prior year period, | ||||||||
| U.S. stores | + 0.9 % | + 4.1 % | + 2.5 % | + 0.7 % | ||||
| International stores | + 9.4 % | + 5.2 % | + 8.9 % | + 5.7 % | ||||
| Total | + 5.1 % | + 4.7 % | + 5.7 % | + 3.2 % |
| (1)
| 2023 figures exclude the impact of the Russia market. Including the impact of the Russia market, international stores retail sales growth was 9.3% and 5.1% for the third quarter and three fiscal quarters of 2023, respectively. Including the impact of the Russia market, total global retail sales growth was 5.0% and 3.8% for the third quarter and three fiscal quarters of 2023, respectively. | |
| (2) | 2023 figures exclude the impact of the Russia market. Including the impact of the Russia market, international stores retail sales growth, excluding foreign currency impact, was 9.0% and 8.5% for the third quarter and three fiscal quarters of 2023, respectively. Including the impact of the Russia market, total global retail sales growth, excluding foreign currency impact, was 4.9% and 5.5% for the third quarter and three fiscal quarters of 2023, respectively. |
| U.S. Company- | U.S. Franchise | Total | International | Total | ||||||||||||||||
| Store counts: | ||||||||||||||||||||
| Store count at June 18, 2023 | 286 | 6,449 | 6,735 | 13,470 | 20,205 | |||||||||||||||
| Openings | 2 | 26 | 28 | 190 | 218 | |||||||||||||||
| Closings | — | (1) | (1) | (225) | (226) | |||||||||||||||
| Store count at September 10, 2023 | 288 | 6,474 | 6,762 | 13,435 | 20,197 | |||||||||||||||
| Third quarter 2023 net store growth (decline) | 2 | 25 | 27 | (35) | (8) | |||||||||||||||
| Third quarter 2023 net store growth, | 2 | 25 | 27 | 108 | 135 | |||||||||||||||
| Trailing four quarters net store growth | 1 | 118 | 119 | 559 | 678 | |||||||||||||||
| Trailing four quarters net store growth, | 1 | 118 | 119 | 748 | 867 | |||||||||||||||
Share Repurchases
During the third quarter of 2023, the Company repurchased and retired 229,860 shares of common stock for a total of $90.0 million. As of September 10, 2023, the Company had a total remaining authorized amount for share repurchases of $199.5 million.
Liquidity
As of September 10, 2023, the Company had approximately:
- $80.9 million of unrestricted cash and cash equivalents;
- $4.99 billion in total debt; and
- $277.8 million of available borrowing capacity under its 2021 and 2022 variable funding notes, net of letters of credit issued of $42.2 million.
Net cash provided by operating activities was $422.1 million during the three fiscal quarters of 2023 as compared to $330.2 million during the three fiscal quarters of 2022. The Company invested $59.3 million in capital expenditures during the three fiscal quarters of 2023 as compared to $50.5 million during the three fiscal quarters of 2022.
Free cash flow, as reconciled below to net cash provided by operating activities, as determined under accounting principles generally accepted in the United States of America ("GAAP"), was approximately $362.9 million during the three fiscal quarters of 2023 as compared to $279.6 million during the three fiscal quarters of 2022 (refer to Comments on Regulation G below for additional details).
| (In thousands) | Three Fiscal | Three Fiscal | ||||||
| Net cash provided by operating activities | $ | 422,130 | $ | 330,154 | ||||
| Capital expenditures | (59,271) | (50,508) | ||||||
| Free cash flow | $ | 362,859 | $ | 279,646 | ||||
Free cash flow increased $83.2 million in the three fiscal quarters of 2023 as compared to the three fiscal quarters of 2022, primarily due to the positive impact of changes in operating assets and liabilities and higher net income, excluding non-cash operating activities, partially offset by higher investments in capital expenditures.
Two- to Three-Year Outlook - 2023 Update
Based on actual results for the three fiscal quarters of 2023 and the Company's outlook for the remainder of fiscal 2023, the Company expects its 2023 global net store growth to trend at or slightly below the low-end of its 5% to 7% two- to three-year outlook. Additionally, the Company expects its 2023 global retail sales growth, excluding foreign currency impact, to trend modestly below the mid-point of its 4% to 8% two -to three-year outlook.
Russia Market Update
On August 21, 2023, the Company's master franchisee that owned and operated Domino's Pizza® stores in Russia announced its intent to file for bankruptcy with respect to the stores in that market. Therefore, as of August 21, 2023, the Company has considered the stores in the Russia market to be closed and they are excluded from the Company's ending store count as of the end of the third quarter of 2023. The Company has disclosed its statistical measure of net store growth for the third quarter and trailing four quarters ended September 10, 2023 including and excluding the impact of the closure of the Russia market. Additionally, the Company has presented its statistical measures of global retail sales growth and global retail sales growth, excluding foreign currency impact, in the tables above for the fiscal quarter and three fiscal quarters ended September 10, 2023 excluding the impact of the retail sales from the Russia market. The Company believes the impact of the Russia market on its statistical measures of global retail sales growth and global retail sales growth, excluding foreign currency impact, for the fiscal quarter and three fiscal quarters ended September 11, 2022 was immaterial and prior amounts have not been adjusted to conform to the current year presentation. The Company believes the impact of the Russia market on its statistical measure of same store sales growth for the periods presented was immaterial, and it also believes the impact of the Russia market on its condensed consolidated statements of income related to international franchise royalties and fee revenues and general and administrative expenses for the periods presented was immaterial. Refer to Comments on Regulation G below for additional details.
Comments on Regulation G
In addition to the GAAP financial measures set forth in this press release, the Company has included non-GAAP financial measures within the meaning of Regulation G, including free cash flow. The Company has also included metrics such as global retail sales, global retail sales growth, global retail sales growth, excluding foreign currency impact, same store sales growth, the market basket pricing change and the impact of foreign currency exchange rates on international franchise royalty revenues which are commonly used statistical measures in the quick-service restaurant industry that are important to understanding Company performance.
The Company uses "Global retail sales," a statistical measure, to refer to total worldwide retail sales at Company-owned and franchise stores. The Company believes global retail sales information is useful in analyzing revenues because franchisees pay royalties and advertising fees that are based on a percentage of franchise retail sales. The Company reviews comparable industry global retail sales information to assess business trends and to track the growth of the Domino's Pizza brand. In addition, supply chain revenues are directly impacted by changes in franchise retail sales. Retail sales for franchise stores are reported to the Company by its franchisees and are not included in Company revenues. "Global retail sales growth" is calculated as the change of U.S. Dollar global retail sales against the comparable period of the prior year. "Global retail sales growth, excluding foreign currency impact" is calculated as the change of international local currency global retail sales against the comparable period of the prior year. The 2023 global retail sales growth measures excluding the Russia market are calculated as the growth in retail sales excluding the retail sales from the Russia market from both 2023 retail sales and the 2022 retail sales base.
The Company uses "Same store sales growth," a statistical measure, which is calculated by including only sales from stores that also had sales in the comparable weeks of both periods. International same store sales growth is calculated similarly to U.S. same store sales growth. Changes in international same store sales are reported excluding foreign currency impacts, which reflect changes in international local currency sales. Same store sales growth for transferred stores is reflected in their current classification.
The Company uses "Net store growth," a statistical measure, which is calculated by netting gross store openings with gross store closures during the period. Transfers between Company-owned stores and franchised stores are excluded from the calculation of net store growth.
The Company uses "Market basket pricing change," a statistical measure, which is calculated as the percentage change of the market basket purchased by an average U.S. store (based on average weekly unit sales) from U.S. supply chain centers against the comparable period of the prior year. The Company believes that the market basket pricing change is important to investors and other interested persons to understand the Company's performance. As market basket prices fluctuate, revenues, cost of sales and gross margin percentages in the Company's supply chain segment also fluctuate. Additionally, cost of sales, gross margins and gross margin percentages for the Company's U.S. Company-owned stores also fluctuate.
The Company uses "Impact of changes in foreign currency exchange rates on international franchise royalty revenues," a statistical measure, which is calculated as the difference in international franchise royalty revenues resulting from translating current period local currency results to U.S. dollars at current period exchange rates as compared to prior period exchange rates. The Company believes that the impact of changes in foreign currency exchange rates on international franchise royalty revenues is important to investors and other interested persons to understand the Company's international royalty revenues given the significant variability in those revenues that can be driven by changes in foreign currency exchanges rates.
The Company uses "Free cash flow," which is calculated as net cash provided by operating activities, less capital expenditures, both as reported under GAAP. The most directly comparable financial measure calculated and presented in accordance with GAAP is net cash provided by operating activities. The Company believes that the free cash flow measure is important to investors and other interested persons, and that such persons benefit from having a measure which communicates how much cash flow is available for working capital needs or to be used for repurchasing debt, making acquisitions, repurchasing common stock or paying dividends.
About Domino's Pizza
Founded in 1960, Domino's Pizza is the largest pizza company in the world, with a significant business in both delivery and carryout pizza. It ranks among the world's top public restaurant brands with a global enterprise of more than 20,000 stores in over 90 markets. Domino's had global retail sales of over $17.5 billion in 2022, with over $8.7 billion in the U.S. and nearly $8.8 billion internationally. In the third quarter of 2023, Domino's had global retail sales of over $4.2 billion, with nearly $2.1 billion in the U.S. and over $2.1 billion internationally. Its system is comprised of independent franchise owners who accounted for 99% of Domino's stores as of the end of the third quarter of 2023. Emphasis on technology innovation helped Domino's achieve approximately two-thirds of all global retail sales in 2022 from digital channels. In the U.S., Domino's generated more than 80% of U.S. retail sales in 2022 via digital channels and has developed several innovative ordering platforms, including those for Apple CarPlay, Amazon Alexa, text-to-order and more. In 2023, Domino's launched Pinpoint Delivery, a new technology that allows customers to receive a delivery nearly anywhere, including places like parks, baseball fields and beaches.
TABLES TO FOLLOW
| Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
| Fiscal Quarter Ended | ||||||||||||||||
| September 10, | % of | September 11, | % of | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| U.S. Company-owned stores | $ | 86,277 | $ | 112,388 | ||||||||||||
| U.S. franchise royalties and fees | 138,322 | 128,878 | ||||||||||||||
| Supply chain | 618,086 | 646,082 | ||||||||||||||
| International franchise royalties and fees | 73,142 | 67,055 | ||||||||||||||
| U.S. franchise advertising | 111,534 | 114,193 | ||||||||||||||
| Total revenues | 1,027,361 | 100.0 | % | 1,068,596 | 100.0 | % | ||||||||||
| Cost of sales: | ||||||||||||||||
| U.S. Company-owned stores | 72,614 | 98,589 | ||||||||||||||
| Supply chain | 556,578 | 588,157 | ||||||||||||||
| Total cost of sales | 629,192 | 61.2 | % | 686,746 | 64.3 | % | ||||||||||
| Gross margin | 398,169 | 38.8 | % | 381,850 | 35.7 | % | ||||||||||
| General and administrative | 97,203 | 9.5 | % | 91,205 | 8.5 | % | ||||||||||
| U.S. franchise advertising | 111,534 | 10.9 | % | 114,193 | 10.7 | % | ||||||||||
| Income from operations | 189,432 | 18.4 | % | 176,452 | 16.5 | % | ||||||||||
| Other income | 28,231 | 2.8 | % | — | 0.0 | % | ||||||||||
| Interest expense, net | (42,089) | (4.1) | % | (44,604) | (4.2) | % | ||||||||||
| Income before provision for income taxes | 175,574 | 17.1 | % | 131,848 | 12.3 | % | ||||||||||
| Provision for income taxes | 27,898 | 2.7 | % | 31,344 | 2.9 | % | ||||||||||
| Net income | $ | 147,676 | 14.4 | % | $ | 100,504 | 9.4 | % | ||||||||
| Earnings per share: | ||||||||||||||||
| Common stock – diluted | $ | 4.18 | $ | 2.79 | ||||||||||||
| Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
| Three Fiscal Quarters Ended | ||||||||||||||||
| September 10, | % of | September 11, | % of | |||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| U.S. Company-owned stores | $ | 258,882 | $ | 328,785 | ||||||||||||
| U.S. franchise royalties and fees | 410,454 | 379,261 | ||||||||||||||
| Supply chain | 1,858,023 | 1,902,215 | ||||||||||||||
| International franchise royalties and fees | 213,308 | 202,803 | ||||||||||||||
| U.S. franchise advertising | 335,719 | 331,863 | ||||||||||||||
| Total revenues | 3,076,386 | 100.0 | % | 3,144,927 | 100.0 | % | ||||||||||
| Cost of sales: | ||||||||||||||||
| U.S. Company-owned stores | 214,609 | 280,029 | ||||||||||||||
| Supply chain | 1,673,405 | 1,728,159 | ||||||||||||||
| Total cost of sales | 1,888,014 | 61.4 | % | 2,008,188 | 63.9 | % | ||||||||||
| Gross margin | 1,188,372 | 38.6 | % | 1,136,739 | 36.1 | % | ||||||||||
| General and administrative | 290,186 | 9.4 | % | 285,769 | 9.1 | % | ||||||||||
| U.S. franchise advertising | 335,719 | 10.9 | % | 331,863 | 10.5 | % | ||||||||||
| Refranchising loss | 149 | 0.0 | % | — | 0.0 | % | ||||||||||
| Income from operations | 562,318 | 18.3 | % | 519,107 | 16.5 | % | ||||||||||
| Other income | 13,267 | 0.4 | % | — | 0.0 | % | ||||||||||
| Interest expense, net | (128,640) | (4.2) | % | (136,059) | (4.3) | % | ||||||||||
| Income before provision for income taxes | 446,945 | 14.5 | % | 383,048 | 12.2 | % | ||||||||||
| Provision for income taxes | 85,119 | 2.7 | % | 89,087 | 2.9 | % | ||||||||||
| Net income | $ | 361,826 | 11.8 | % | $ | 293,961 | 9.3 | % | ||||||||
| Earnings per share: | ||||||||||||||||
| Common stock – diluted | $ | 10.19 | $ | 8.11 | ||||||||||||
| Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| September 10, | January 1, | |||||||
| (In thousands) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 80,879 | $ | 60,356 | ||||
| Restricted cash and cash equivalents | 202,307 | 191,289 | ||||||
| Accounts receivable, net | 249,995 | 257,492 | ||||||
| Inventories | 69,683 | 81,570 | ||||||
| Prepaid expenses and other | 41,257 | 37,287 | ||||||
| Advertising fund assets, restricted | 151,511 | 162,660 | ||||||
| Total current assets | 795,632 | 790,654 | ||||||
| Property, plant and equipment, net | 290,391 | 302,235 | ||||||
| Operating lease right-of-use assets | 209,934 | 219,202 | ||||||
| Investment in DPC Dash | 139,107 | 125,840 | ||||||
| Other assets | 184,400 | 164,290 | ||||||
| Total assets | $ | 1,619,464 | $ | 1,602,221 | ||||
| Liabilities and stockholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 55,847 | $ | 54,813 | ||||
| Accounts payable | 101,058 | 89,715 | ||||||
| Operating lease liabilities | 38,645 | 34,877 | ||||||
| Advertising fund liabilities | 147,335 | 157,909 | ||||||
| Other accrued liabilities | 220,056 | 199,307 | ||||||
| Total current liabilities | 562,941 | 536,621 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt, less current portion | 4,931,924 | 4,967,420 | ||||||
| Operating lease liabilities | 183,031 | 195,244 | ||||||
| Other accrued liabilities | 83,110 | 92,001 | ||||||
| Total long-term liabilities | 5,198,065 | 5,254,665 | ||||||
| Total stockholders' deficit | (4,141,542) | (4,189,065) | ||||||
| Total liabilities and stockholders' deficit | $ | 1,619,464 | $ | 1,602,221 | ||||
| Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| Three Fiscal Quarters Ended | ||||||||
| September 10, | September 11, | |||||||
| (In thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 361,826 | $ | 293,961 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 54,999 | 56,026 | ||||||
| Refranchising loss | 149 | — | ||||||
| Loss on sale/disposal of assets | 547 | 475 | ||||||
| Amortization of debt issuance costs | 3,858 | 3,937 | ||||||
| (Benefit) provision for deferred income taxes | (12,191) | 5,912 | ||||||
| Non-cash compensation expense | 26,507 | 21,590 | ||||||
| Excess tax benefits from equity-based compensation | (2,973) | (907) | ||||||
| Provision for losses on accounts and notes receivable | 1,342 | 2,870 | ||||||
| Unrealized gain on investments | (13,267) | — | ||||||
| Changes in operating assets and liabilities | 7,682 | (49,288) | ||||||
| Changes in advertising fund assets and liabilities, restricted | (6,349) | (4,422) | ||||||
| Net cash provided by operating activities | 422,130 | 330,154 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (59,271) | (50,508) | ||||||
| Purchase of franchise operations and other assets | — | (6,814) | ||||||
| Other | (743) | (1,375) | ||||||
| Net cash used in investing activities | (60,014) | (58,697) | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of long-term debt | — | 120,000 | ||||||
| Repayments of long-term debt and finance lease obligations | (41,349) | (41,441) | ||||||
| Proceeds from exercise of stock options | 5,806 | 1,296 | ||||||
| Purchases of common stock | (210,847) | (293,739) | ||||||
| Tax payments for restricted stock upon vesting | (5,240) | (10,691) | ||||||
| Payments of common stock dividends and equivalents | (85,564) | (79,689) | ||||||
| Net cash used in financing activities | (337,194) | (304,264) | ||||||
| Effect of exchange rate changes on cash | (304) | (611) | ||||||
| Change in cash and cash equivalents, restricted cash and cash equivalents | 24,618 | (33,418) | ||||||
| Cash and cash equivalents, beginning of period | 60,356 | 148,160 | ||||||
| Restricted cash and cash equivalents, beginning of period | 191,289 | 180,579 | ||||||
| Cash and cash equivalents included in advertising fund assets, restricted, | 143,559 | 161,741 | ||||||
| Cash and cash equivalents, restricted cash and cash equivalents and | 395,204 | 490,480 | ||||||
| Cash and cash equivalents, end of period | 80,879 | 114,776 | ||||||
| Restricted cash and cash equivalents, end of period | 202,307 | 184,564 | ||||||
| Cash and cash equivalents included in advertising fund assets, restricted, | 136,636 | 157,722 | ||||||
| Cash and cash equivalents, restricted cash and cash equivalents and cash and | $ | 419,822 | $ | 457,062 | ||||
SOURCE Domino's Pizza, Inc.
