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Domino's earnings on a 'positive cycle'

Domino's strong sales and store-count growth capped a good year for the company.

February 26, 2016

Domino's strong sales and store-count growth capped a good year for the company.

"Our network of strong franchisees has become even more profitable during these years of continued positive same store sales growth," J. Patrick Doyle, Domino's president and CEO, said in a company press release. "Great store economics around the world have led to accelerated unit growth. It's a positive cycle and the momentum continued through 2015."

Domino's announced, this week, results for the fourth quarter and fiscal 2015, comprised of strong growth in same store sales, global store counts and earnings. Domestic same store sales grew 10.7 percent during the quarter versus the year-ago period, and 12 percent for the full year, continuing the positive sales momentum in the company's domestic business.

The international division also posted strong results, with same store sales growth of 8.6 percent during the quarter and 7.8 percent for the full year. The fourth quarter marked the 88th consecutive quarter — or 22nd full year — of positive international same store sales growth. The company also had global net store growth of 901 stores in 2015, comprised of 133 net new domestic stores and a record 768 net new stores internationally, according to the release.

Other highlights included:

• Diluted EPS was $1.18, up 38.8 percent over the prior-year quarter; full year diluted EPS was $3.47, up 21.3 percent over the prior year. 
• Revenueswere up 15.3 percent for the fourth quarter versus the prior year period largely due to the estimated $49.7 million positive impact of the 53rd week in 2015. Revenue growth was also driven by higher supply chain volumes and sales of equipment to stores in connection with the company's global store reimaging program. Higher domestic same-store sales and store-count growth, which resulted in increased royalties from franchised stores and higher revenues at company-owned stores, also contributed to this increase. International revenues also benefited from increased same-store sales and store-count growth, and were offset in part by the negative impact of foreign currency, according to the release.
• Net Income was up 30.7 percent for the fourth quarter versus the prior year period, driven by domestic and international same store sales growth, global store count growth and higher supply chain volumes.