Domino's Pizza Inc. today announced results for the second quarter ended June 19. Domestic same-store sales were up 4.8 percent versus the year-ago period, comparing favorably against a strong second quarter in 2010, which was up 8.8 percent.
Internationally, the company marked its 70th consecutive quarter of same-store sales growth, up 7.4 percent compared to the prior-year period. Second-quarter diluted earnings per share were up 40 cents, up 21 percent over the as-adjusted diluted EPS in the second quarter of 2010. During the second quarter of 2011, the company repurchased and retired 1,747,885 shares of its common stock, for a total of $41.4 million.
"The sales momentum in our business continues, resulting in a strong first half for 2011," said J. Patrick Doyle, Domino's president and CEO.
Domino's, which is in more than 70 markets around the world, has a diversified global presence that has driven steady, positive results, Doyle said. "We like our position in the category; and we have tremendous energy to produce even better returns for our shareholders and franchisees going forward."
Second Quarter Highlights:
Revenues were up 6.2 percent for the second quarter versus the prior-year period, due primarily to higher same store sales in both domestic and international stores, store count growth in international markets and higher commodity prices impacting the company's supply chain operations. Partially offsetting these increases were lower company-owned store revenues due to the sale of 26 company-owned stores to a franchisee during the first quarter of 2011.
Net Income was up 11.6 percent for the second quarter versus last year, primarily driven by domestic and international same-store sales growth, international store growth and lower interest expense. Partially offsetting these increases were the gains recorded on debt repurchases in 2010, a higher effective tax rate in 2011 and higher general and administrative expenses in 2011.
Global Retail Sales were up 14.5 percent in the second quarter, or up 9.6 percent when excluding foreign currency impact.
Domino's UK goes gourmet
Britain's biggest pizza delivery firm forecasts stronger sales growth in the second half of the year after reporting a 15-percent rise in first-half profit.
The success may be attributed to the company's recent launch of a stuffed crust pizza. It's also sponsoring a new Simon Cowell-backed TV show, Red or Black, that will offer contestants a 1-million pound ($1.63-million) jackpot. And its sponsorship of Britain's Got Talent coincided with a sharp rise in sales in the past three years.
The company has also announced it will launch a line of thin-crust Italian gourmet pizzas to win over more middle-class customers on bigger budgets.
"It's not Domino's going upmarket. It's more about broadening the appeal," Chris Moore, chief executive, told the Telegraph.
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