News

Debt down, profits up for '04 at Domino's Pizza

February 21, 2005

ANN ARBOR, Mich. — Domino's Pizza reported modest but positive overall growth for fiscal year 2004.

According to a regulatory filing, comparable-store sales for its fourth quarter, ended Jan. 2, 2005, decreased 0.2 percent overall at domestic units (comprised of a 2 percent slide at company-owned units and flat performance at franchised units.) International comps were up 5.9 percent for the period.

Fourth quarter net income was $27 million on $479 million in revenue, compared to $21.3 million in net income and $433 million in revenue during the same period in 2003.

For the full year, ended Jan. 2, 2005, domestic comparable-store sales were up 1.8 percent (comprised of a 0.1 percent increase at company-owned units and a 2.1 percent increase at franchised units.) Comps at international units rose 5.9 percent for the year.

For all of 2004 Domino's posted $62.3 million in net income on $1.45 billion in revenue. For the previous year, profit was $39 million on revenue of $1.33 billion.

The profit increases were credited to improved income from operations and decreases in interest expenses connected to its debt service. The chain's July 2004 initial public offering helped reduced its debt burden by nearly $175 million, dropping it from $982 million to $807 million.

The company reported a system-wide net unit increase of 330, its largest single-year unit increase since 2000. There are 7,757 Domino's units worldwide.

During a Feb. 22 analyst conference call, the company said it plans to open 200 to 250 net units this year. One third of those will be domestic units.