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Domino’s knocks down 91 straight quarters of global growth

Domino’s Pizza continues to dominate the category with another strong quarter of financials marked by strong growth in same store sales, global store counts, and earnings per share.

October 20, 2016 by S.A. Whitehead — Food Editor, Net World Media Group

Domino’s Pizza continues to dominate the category with another strong quarter of financials marked by strong growth in same store sales, global store counts, and earnings per share. Here in the states, the chain’s same store sales grew 13 percent over the same period last year, which marks the chain’s 22nd consecutive quarter of positive U.S. sales.

Internationally, the chain wrapped up its 91st consecutive quarter of same store sales growth, with an increase of 6.6 percent year over year. In fact, the chain saw global net growth of 316 stores in Q3, for a total of 1,133 stores over the trailing four quarters, according to a release.

Third quarter diluted EPS grew 43.3 percent year over year to 96 cents, and the company repurchased 412,260 shares of its common stock for approximately $59.7 million. The company also declared a 38 cent per share quarterly dividend for all shareholders as of Dec. 15, to be paid Dec. 30. 

"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, in a news release. "I couldn't be more pleased with the way our system continues to answer the challenge of sustained success."

Q3 highlights: 

• revenues gained 16.9 percent, mostly due to higher supply chain revenues from increased volumes and store growth;
• net Income rose 24.8 percent, primarily due to higher consolidated operating margins partially driven by higher sales and store growth, but partially offset by greater general and administrative expenses, as well as interest expense from the company's 2015 recapitalization; and
• diluted EPS grew 43.3 percent to 96 cents, driven by increased net income and lower diluted share counts.

The company also released information about its liquidity, saying that as of Sept. 11 it had: 

• $30 million in unrestricted cash and cash equivalents;
• $2.23 billion in total debt;
• $46.2 million of available borrowings under its $125 million variable funding notes. Letters of credit issued under the company's variable funding note facility were $43.8 million;
• $38.3 million invested in capital expenditures during the three fiscal quarters of 2016; and
• free cash flow of approximately $124.4 million in the three fiscal quarters of 2016.

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.