Domino’s Pizza: Announces Q1/2016 Financial Results

Ann Arbor / MG. (dp) Domino’s Pizza Inc., the recognized world leader in pizza delivery, announced results for the first quarter of 2016, comprised of growth in same store sales, global store counts and earnings per share. Domestic same store sales grew 6.4 percent during the quarter versus the year-ago period, continuing the 20-quarter positive sales momentum in the U.S. business. The international division also posted strong results with quarterly same store sales growth of 7.9 percent, marking the 89th consecutive quarter of international same store sales growth. The Company had global net store growth of 162 stores in the quarter, and 953 net new stores on a trailing thirteen period basis.

Diluted EPS was 89 cents for the first quarter, which was up 9.9 percent over the Company’s reported EPS in the prior year quarter. During the quarter, the Company received and retired 456’936 shares of its common stock upon the completion of its previously announced accelerated share repurchase (ASR) program. The Board of Directors also declared a 38-cent per share quarterly dividend for shareholders of record as of June 15, 2016, to be paid on June 30, 2016.

J. Patrick Doyle, Domino’s President and Chief Executive Officer, said: «We started 2016 with yet another strong quarter of growth for both our international and domestic operations. Business remains robust thanks to our tremendous fundamentals and brand momentum».

First Quarter Highlights

Revenues were up 7.4 percent for the first quarter versus the prior year period, due primarily to higher supply chain revenues from increased volumes. Increased domestic franchise and Company-owned store revenues and higher international revenues resulting from both same store sales and store count growth also contributed to this increase. The negative impact of foreign currency exchange rates partially offset this increase.

Net Income was down 1.8 percent for the first quarter versus the prior year period, due to higher interest expense as a result of the Company’s 2015 recapitalization, as well as the negative impact of foreign currency exchange rates. Higher domestic and international same store sales growth, global store count growth and higher supply chain volumes partially offset this decrease.

Diluted EPS was 89 cents for the first quarter versus 81 cents in the prior year quarter. This represents an 8-cent or 9.9 percent increase over the prior year quarter. This increase was driven by the aforementioned operating results as well as lower diluted share counts, primarily as a result of the ASR program.