Domino’s Pizza: Announces Q2-2016 Financial Results

Ann Arbor / MG. (dp) Domino’s Pizza Inc., the recognized world leader in pizza delivery, announced in July the results for the second quarter 2016, comprised of growth in same store sales, global store counts and diluted earnings per share. Domestic same store sales grew 9.7 percent during the quarter versus the year-ago period, continuing the 21-quarter positive sales momentum in the U.S. business. The international division also posted strong results with quarterly same store sales growth of 7.1 percent, marking the 90th consecutive quarter of international same store sales growth. The Company had global net store growth of 244 stores in the quarter, and 1’011 net new stores over the trailing four quarters.

Diluted EPS was 98 cents for the second quarter, which was up 21.0 percent over the Company’s diluted EPS in the prior year quarter. During the quarter, the Company repurchased 1’845’126 shares of its common stock for approximately 224.1 million USD. The Board of Directors also declared a 38-cent per share quarterly dividend for shareholders of record as of September 15, 2016, to be paid on September 30, 2016.

J. Patrick Doyle, Domino’s President and Chief Executive Officer, said: «I am pleased with our impressive top and bottom line results during the second quarter, and the performance of our franchisees in the U.S. and across the globe. The business continued to progress in a very positive direction».

Second Quarter Highlights

(USD in millions, except per share data)

Q2/2016

Q2/2015

H1/2016

H1/2015

Net income

USD

49.3

USD

45.9

USD

94.7

USD

92.2

Weighted average diluted shares

50’459’754

56’628’237

50’846’941

56’820’743

Diluted earnings per share

USD

0.98

USD

0.81

USD

1.86

USD

1.62

.

• Revenues were up 12.0 percent for the second quarter versus the prior year period, due primarily to higher supply chain revenues from increased volumes and store growth. 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.
• Net Income increased 7.3 percent for the second quarter versus the prior year period, due primarily to higher consolidated operating margins driven by the increase in sales and store growth. Higher general and administrative expenses and higher interest expense as a result of the Company’s 2015 recapitalization partially offset this increase.
• Diluted EPS was 98 cents for the second quarter versus 81 cents in the prior year quarter. This represents a 17-cent or 21.0 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 share repurchases made during the trailing four quarters.

The table below outlines certain statistical measures utilized by the Company to analyze its performance.

Performance		Q2/2016				Q2/2015
Same store sales growth: (versus prior year period)
Domestic Company-owned stores			+ 9.1	%			+ 12.5	%
Domestic franchise stores			+ 9.8	%			+ 12.8	%
Domestic stores			+ 9.7	%			+ 12.8	%
International stores (excluding foreign currency impact)			+ 7.1	%			+ 6.7	%
Global retail sales growth: (versus prior year period)
Domestic stores			+ 11.8	%			+ 14.9	%
International stores			+ 11.5	%			+ 1.3	%
Total			+ 11.7	%			+ 7.5	%
Global retail sales growth: (versus prior year period, excluding foreign currency impact)
Domestic stores			+ 11.8	%			+ 14.9	%
International stores			+ 16.6	%			+ 15.0	%
Total			+ 14.3	%			+ 14.9	%

.

Store counts:		Domestic Company-owned Stores				Domestic Franchise Stores				Total Domestic Stores				International Stores					Total
Store count at March 27, 2016			385				4’831				5’216				7’476				12’692
Openings			—				36				36				228				264
Closings			—				(7)				(7)				(13)				(20)
Transfers			1				(1)				—				—				—
Store count at June 19, 2016			386				4’859				5’245				7’691				12’936
Second quarter 2016 net change			1				28				29				215				244
Trailing four quarters net change			10				137				147				864				1’011