Domino's has reported its 2010 second quarter earnings for the period ending June 20. The company has seen sustained gains from its "Oh Yes We Did" campaign and recipe overhaul started in fall 2009: Comps have turned around, and net income is up more than 50 percent. Robust sales volume also drove positive results in the Company's domestic supply chain business.
"Our strong sales momentum in the U.S. is evidence of the success of our improved pizza and focus on operations,” said Domino’s president and CEO J. Patrick Doyle. “The increased sales were not just driven by trial, but by repeat orders from our new larger customer base. I continue to be bullish on the performance of our U.S. business."
During the quarter, the Company's domestic same store sales rose 8.8 percent versus the year-ago period, which was at –3.3 growth in Q2 2009. International same store sales grew 6.2 percent in the second quarter, the 66th consecutive quarter of positive same store sales for the division.
Net income in the second quarter was up $8.1 million, or 55.7 percent, from Q2 2009, to $22.6 million, driven primarily by improved domestic sales and operating margins, international sales and store growth, lower interest expense and a lower effective tax rate. These improvements were offset by a reduction in pre-tax gains on debt repurchases which were approximately $11.4 million lower in the second quarter versus the prior year period.
Revenues were up 14.5 percent for the second quarter versus the prior year period to $362.4 million, due primarily to higher volumes and higher commodity prices in supply chain, higher same store sales in both domestic and international stores and store count growth in international markets.