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Domino's investors delight as Q4 dividend soars 20%

Photo: iStock

February 20, 2020

Traders were loving Domino's Pizza this morning, after an early morning quarterly sales report that knocked pizza investors' socks off, showing U.S. Q4 same-store sales and profit surged 3.4%, trouncing analysts' estimates in the 2.3% range. Retail sales and earnings per share also grew nicely in the fourth quarter, which was the company's 35th straight quarter for U.S. same store sales growth, according to a quarterly financials report. 

Other key Q4 results include:

• 6.9% global retail sales increase (7.6% excluding foreign currency). 
• 3.4% U.S. same store sales increase. 
• 1.7% international same-store sales growth. 
• Global net store growth of 492, with 141 in the U.S. 
• 19.1% growth in quarterly diluted EPS, quarter-year over quarter-year. 

Full year financial results include: 

• 5.7% global retail sales increase, or 8% excluding foreign currency impact. 
• 3.2% U.S. same store sales growth. 
• 1.9% international same-store sales growth. 
• Opened 1,106 net new stores, 250 in the U.S. 
• Fiscal 2019 diluted EPS was $9.56, up 14.5% over the prior year.

The company's board declared a 78-cent per share quarterly dividend for shareholders of record as of March 13 to be paid on March 30, representing a 20% increase over the previous quarterly dividend amount. 

The brand credited its speedier delivery and GPS delivery tracking, as previously discussed at length in this story, as well as menu discounts and customer focus for its success. 

"I am extremely proud of the accomplishments of our franchisees and our team members from around the world, not just in the fourth quarter, but throughout all of 2019," CEO Ritch Allison said this morning. "Our relentless focus on our customers, our franchisees and the long-term growth and profitability of the Domino's business model helped us deliver a solid 2019 in the face of unique competitive headwinds."