Domino's the dynamo: Brand hits 95 quarters of global sales growth
Domino's third-quarter financial results marked an enviable 95 consecutive quarters of global same stores sales growth for the brand. Likewise, the company saw healthy progress in global store counts and earnings per share, a news release said.
Domestic same store sales grew 8.4 percent during the quarter versus the year-ago period, the 26th consecutive quarter of positive sales domestically, a news release said. Meanwhile, international same store sales grew 5.1 percent to push the company to the aforementioned 95th consecutive quarter of positive growth globally.
The company had global net store growth of 217 stores, with 53 net new domestic stores and 164 net new stores internationally. Over the trailing four quarters Domino's has added 1,182 net new stores.
"The third quarter was an excellent example of us simply continuing to do what we do best — executing on our long-term strategy, relying upon our strong fundamentals and aligning with our outstanding U.S. and international operators to turn in another quarter of phenomenal results," Domino's President and CEO J. Patrick Doyle said in the release. "The momentum behind this business continues to amaze me, proving once again that our domestic and international franchisees are second to none."
Diluted EPS for the quarter was up 22.9 percent year over year, at $1.18. However, as-reported diluted EPS for Q3 was negatively impacted by recapitalization expenses. Diluted EPS was up 32.3 percent year over year, at $1.27r.
The company borrowed $1.9 billion as part of its recapitalization, using a part of that to repay remaining debt under its 2012 fixed-rate notes. Domino's also entered into a $1.0 billion accelerated share repurchase agreement with a counterparty and completed that transaction.
As part of the agreement, the company will receive and retire 5,218,670 shares of its common stock at an average price of $191.62, including 4,558,863 shares of its common stock received and retired during the third quarter.
The company's board declared a 46 cent per share quarterly dividend for shareholders of record as of Sept. 15, paid Sept. 29. The board also declared a 46 cent per share quarterly dividend for shareholders of record as of Dec.15, to be paid Dec. 29.