Set in motion by a complete recipe overhaul and a corresponding marketing campaign, Domino’s Pizza Inc.’s results for the fourth quarter and fiscal year 2010, both ended Jan. 2, featured a big boost in profits.
The company’s domestic same-store sales grew 6.3 percent during Q4 '10 versus the year-ago period, and 9.9 percent for the full year. The success is attributed to increased store traffic and sustained consumer response to the new pizza and ad initiative.
Further, the company's annual domestic store growth in 2010 was positive for the first time since 2007.
The International division continued its strong performance with same store sales growth of 9 percent in the fourth quarter – marking the 68th consecutive quarter of positive same store sales growth for the division – and 6.9 percent for the full year. The International division had record net store count growth in fiscal 2010 and continued to grow in new and existing markets.
"In 2010, we demonstrated that we're a new Domino's. In the U.S., our decision to improve our pizza, and the success that resulted from it, allowed us to build a new base of customers and a stronger base of business from which to grow. Our international business, with 17 straight years of positive quarterly same store sales results, proved once again that Domino's is one of the strongest global brands in the restaurant sector,” said J. Patrick Doyle, Domino’s president and CEO.
Additionally, during Q4 '10, the company repurchased $23.5 million of its debt at a slight premium, for a total of $313.1 million in repurchases of its fixed rate notes since the beginning of 2009.