News

Domino's CEO: Business robust in Q1

April 28, 2016

Domino's Pizza reported a solid Q1, revealing same-store sales, global store counts and earnings per share were up.

"We started 2016 with yet another strong quarter of growth for both our international and domestic operations," said J. Patrick Doyle, Domino's president and CEO. "Business remains robust thanks to our tremendous fundamentals and brand momentum."

Domestic same-store sales grew 6.4 percent during the quarter vs. the year-ago period, continuing the 20-quarter positive sales momentum in the U.S. business. The international division also posted strong results with quarterly same-store sales growth of 7.9 percent, marking the 89th consecutive quarter of international same-store sales growth, Doyle said

Other Q1 highlights:

• Revenues were up 7.4 percent for the first quarter vs. the prior year period, due primarily to higher supply chain revenues from increased volumes.
• Increased domestic franchise and company-owned store revenues and higher international revenues resulting from both same-store sales and store count growth also contributed to this increase. The negative impact of foreign currency exchange rates partially offset this increase.
• Net income was down 1.8 percent for the first quarter compared to the prior year period, due to higher interest expense as a result of the company's 2015 recapitalization, as well as the negative impact of foreign currency exchange rates. Higher domestic and international same-store sales growth, global store count growth and higher supply chain volumes partially offset this decrease.
• Completed the $600 million Accelerated Share Repurchase Program. On March 14, at final settlement, the company received and retired 456,936 shares of its common stock based on the terms of the related ASR agreement. The average purchase price per share for all of the 5,315,930 shares the company received and retired over the entirety of the $600 million ASR program was $112.87. As of April 21, the company had authorization for repurchases of $200 million remaining under its open market share repurchase program.
• Diluted EPS was 89 cents for the first quarter vs. 81 cents in the prior-year quarter. This represents an 8 cents, or 9.9 percent, increase over the prior year quarter. This increase was driven by the aforementioned operating results as well as lower diluted share counts, primarily as a result of the ASR program.
• Opened 162 stores.