Domino's Pizza Inc. experienced a 1.4 percent decline in U.S. sales during the first quarter 2011 ended March 27. This is compared to an exceptionally strong Q1 '10 following the company's recipe overhaul, which pushed sales up 14.3 percent.
Despite a slight domestic drop, however, international same-store sales grew 8.3 percent in Q1, marking the 69th consecutive quarter of same-store sales growth for the division.
Boosted by strong international sales, revenues were up 2.1 percent versus the prior-year period. Net income was up 10.6 percent, also driven by higher international royalty revenues, international store growth and lower general and administrative expenses.
First quarter as reported diluted EPS was 43 cents. On an as adjusted basis, diluted EPS was 42 cents for the first quarter, a 20 percent increase over the first quarter of 2010.
During the first quarter of 2011, the company repurchased and retired 357,605 shares of its common stock, for a total of $5.8 million.
"This quarter clearly demonstrated that the combination of a new, bigger sales base domestically, a best-in-class international business, great franchisees and an optimized capital structure, drove strong results. We're off to a great start in 2011," said J. Patrick Doyle, Domino's president and CEO.