Domino’s Pizza: Announces Q3-2016 Financial Results

Ann Arbor / MG. (dp) Domino’s Pizza Inc., the recognized world leader in pizza delivery, announced results for the third quarter of 2016, comprised of strong growth in same store sales, global store counts and diluted earnings per share. Domestic same store sales grew 13.0 percent during the quarter versus the year-ago period, which represents the 22nd consecutive quarter of positive sales in the U.S. business. The international division also posted strong results with quarterly same store sales growth of 6.6 percent, marking the 91st consecutive quarter of international same store sales growth. The Company had global net store growth of 316 stores in the quarter, and 1’133 stores over the trailing four quarters.

Diluted EPS was 96 cents for the third quarter, which was up 43.3 percent over the prior year quarter. During the quarter, the Company repurchased 412’260 shares of its common stock for approximately 59.7 million USD. The Company’s Board of Directors also declared a 38-cent per share quarterly dividend for shareholders of record as of December 15, 2016, to be paid on December 30, 2016.

«We continued to execute at a very high level during the third quarter, as our unprecedented momentum, steady strategy and alignment with our outstanding franchisees is helping to take the business to new heights», said J. Patrick Doyle, Domino’s President and Chief Executive Officer. «I couldn’t be more pleased with the way our system continues to answer the challenge of sustained success».

Third Quarter Highlights:

(USD in millions, except per share data)	Q3/2016			Q3/2015			9M-2016			9M-2015
Net income	USD	47.2		USD	37.8		USD	141.9		USD	130.0
Weighted average diluted shares		49’242’182			56’115’670			50’309’217			56’584’913
Diluted earnings per share	USD	0.96		USD	0.67		USD	2.82		USD	2.30

.

• Revenues were up 16.9 percent for the third 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 24.8 percent for the third quarter versus the prior year period, due primarily to higher consolidated operating margins driven in part by the increase in sales and store growth. Higher general and administrative expenses, as well as higher interest expense as a result of the Company’s 2015 recapitalization partially offset this increase. Additionally, the Company’s consolidated operating margins and net income benefited from lower insurance expense in the quarter, due to a casualty insurance charge recorded in the third quarter of 2015.
• Diluted EPS was 96 cents for the third quarter versus 67 cents in the prior year quarter. This represents a 29-cent or 43.3 percent increase over the prior year quarter. This increase was driven by the aforementioned increase in net income 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.

	Q3/2016				Q3/2015
Same store sales growth: (versus prior year period)
Domestic Company-owned stores		+ 13.8	%			+ 11.5	%
Domestic franchise stores		+ 12.9	%			+ 10.4	%
Domestic stores		+ 13.0	%			+ 10.5	%
International stores (excluding foreign currency impact)		+ 6.6	%			+ 7.7	%
Global retail sales growth: (versus prior year period)
Domestic stores		+ 16.2	%			+ 12.7	%
International stores		+ 13.6	%			+ 0.7	%
Total		+ 14.9	%			+ 6.1	%
Global retail sales growth: (versus prior year period, excluding foreign currency impact)
Domestic stores		+ 16.2	%			+ 12.7	%
International stores		+ 18.1	%			+ 17.4	%
Total		+ 17.2	%			+ 15.2	%

.

	Domestic Company-owned		Domestic Franchise		Total Domestic		International		Total
Store counts:
Store count at June 19, 2016	386		4’859		5’245		7’691		12’936
Openings	1		35		36		300		336
Closings	–		(8)		(8)		(12)		(20)
Store count at September 11, 2016	387		4’886		5’273		7’979		13’252
Third quarter 2016 net change	1		27		28		288		316
Trailing four quarters net change	10		151		161		972		1’133