Domino’s Pizza Inc.: 3Q/2009 profit rises on cost-cutting

Ann Arbor / MG. (dp) Domino´s Pizza Inc. recognized world leader in pizza delivery, announced results for the third quarter ended September 06, 2009. Net income as-reported was up 76,6 percent versus the prior year, driven by gains on the extinguishment of debt, improved operating margins, lower interest expense and international store growth. Year-to-date, the Company has repurchased approximately 161 million USD in principal amount of its long-term debt. As of the quarter end, the Company had nearly 49 million USD of unrestricted cash and cash equivalents.

During the third quarter, domestic same store sales were flat while international same store sales grew 2,7 percent. The quarter also marked the 63rd consecutive quarter of same store sales growth in Domino´s international division. Third Quarter Highlights:

Q3/2009 Q3/2008 01-09/2009 01-09/2008
Net income 17,8 million USD 10,1 million USD 56,1 million USD 42,9 million USD
Weighted average diluted shares 57’981’137 58’042’743 57’680’513 58’859’220
Diluted earnings per share as-reported 0,31 USD 0,17 USD 0,97 USD 0,73 USD
Items affecting comparability (0,14 USD) (0,05 USD) (0,40 USD) (0,17 USD)
.
Diluted earnings per share as adjusted 0,17 USD 0,13 USD 0,57 USD 0,56 USD

  • Diluted EPS was 0,31 USD on an as-reported basis for the third quarter, up 0,14 USD from the prior year period. Excluding items affecting comparability, diluted EPS increased 0,04 USD, primarily due to operating margin improvements and lower interest expense primarily from recent debt extinguishments. This was offset in part by the negative impact of foreign currency exchange rates on international operations.
  • Global Retail Sales were down 1,9 percent in the third quarter, or up 3,9 percent when excluding the impact of foreign currency.

Q3/2009 Q3/2008
Same store sales growth:
Domestic Company-owned stores (2,0) percent (3,4) percent
Domestic franchise stores +0,3 percent (6,4) percent
.
Domestic stores 0,0 percent (6,1) percent
.
International stores +2,7 percent +5,4 percent
.
Global retail sales growth:
Domestic stores (1,6) percent (5,8) percent
International stores (2,1) percent +14,1 percent
.
Total (1,9) percent +2,4 percent
.
Global retail sales growth
(excluding foreign currency impact)
Domestic stores (1,6) percent (5,8) percent
International stores +10,4 percent +12,2 percent
.
Total +3,9 percent +1,6 percent

David A. Brandon, Domino´s Chairman and Chief Executive Officer: «We did a good job of anticipating the economic downturn in the U.S. and we cut costs before the economy weakened. We have been intensely focused on controlled overhead spending throughout the past three years. As a result, we are now in a position to invest in our business; invest in our franchisees; invest in our marketing; invest in our technology; and expand our global footprint. We are making excellent progress and we are in a great position to take full advantage of all of the opportunities we will encounter when domestic consumer spending improves and we return to a more normalized economic environment».

bakenet:eu
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