Domino’s: Announces Q2-2021 Financial Results

Ann Arbor / MG. (dp) Domino’s Pizza Inc., the largest pizza company in the world based on global retail sales, announced results for the second quarter. Global retail sales increased 21.6 percent in the second quarter, or 17.1 percent excluding foreign currency impact. U.S. same store sales grew 3.5 percent during the quarter versus the year-ago period, continuing the positive sales momentum in the Company’s U.S. stores business. The international business also posted strong results, with same store sales growth of 13.9 percent during the quarter. The second quarter marked the 110th consecutive quarter of international same store sales growth and the 41st consecutive quarter of U.S. same store sales growth. The Company had second quarter global net store growth of 238 stores, comprised of 35 net U.S. store openings and 203 net international store openings.

«I am very pleased with our strong global retail sales and store growth momentum during the second quarter, which demonstrated the power of our investments in innovation, our focus on food quality and superior service, and our dynamic franchisees who are dedicated to serving their local neighborhoods,» said Ritch Allison, Domino’s Chief Executive Officer. «Given our current operating environment, we are watching our two-year sales trends anchored to pre-Covid fiscal 2019 results. I am pleased that in the second quarter our cumulative two-year same stores sales were up 19.6 percent domestically and 15.2 percent internationally, signifying meaningful and sustained growth.»

Diluted EPS for the second quarter was USD 3.06, an increase of 2.3 percent over the prior year quarter. Second quarter diluted EPS, as adjusted, was USD 3.12, an increase of 4.3 percent over the prior year quarter. Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information.

In connection with the Company’s recapitalization transaction, as further discussed below, the Company borrowed USD 1.85 billion, and used a portion of the proceeds to repay its remaining debt under its 2017 five-year fixed rate and 2017 five-year floating rate notes. The Company also entered into a USD 1.0 billion accelerated share repurchase agreement (the ASR Agreement) with a counterparty, which was completed subsequent to the end of the second quarter. In connection with the ASR Agreement, the Company received and retired a total of 2,250,786 shares of its common stock at an average price of USD 444.29, including 2,012,596 shares of its common stock received and retired during the second quarter.

Subsequent to the end of the second quarter, on July 20, 2021, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to USD 1.0 billion of the Company’s common stock. This repurchase program replaces the Company’s previously approved USD 1.0 billion share repurchase program, which was fully utilized in connection with the ASR Agreement.

Also on July 20, 2021, the Company’s Board of Directors declared a USD 0.94 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2021 to be paid on September 30, 2021.

Second Quarter 2021 Highlights (Unaudited)

(USD in millions, except per share data)
Net income USD 116.6 USD 118.7 USD 234.4 USD 240.3
Weighted average diluted shares 38,122,515 39,746,479 38,665,325 39,688,663
Diluted EPS USD 3.06 USD 2.99 USD 6.06 USD 6.05
Items affecting comparability 0.06 0.06
Diluted EPS, as adjusted USD 3.12 USD 2.99 USD 6.12 USD 6.05

For additional information please refer to the company’s news release (PDF | 436 KB):