News

Domino's US same store sales up 9.5 percent, 2.6 percent worldwide

Q2 was very good to Domino's brand.

July 26, 2017

Spring and early summer 2017 were especially kind to Domino's Pizza, with domestic same store sales growth up almost 10 percent, with international same store sales up 2.6 percent, the company said in a news release. If you're counting, that's 25 straight quarters of domestic sales growth and 94 globally. 

That offered plenty of accelerant for store growth, with the delivery-based brand opening 39 net new U.S. stores and 178 net new stores internationally. In total over the trailing four quarters, that brings the number of net new stores to 1,281. 

For investors that was cause for a pizza party, with Q2 diluted EPS aup nearly 35 percent over the prior year quarter's amount to $1.32. As a result the board declared a 46 -ent per share dividend payable June 30. The sizable numbers are attributed to both operational results and less money spent on taxes, the release said. 

"It was another outstanding quarter for our domestic business, as brand momentum, strong execution and emphasis on getting better each day continued to drive what we do," Domino's President and CEO J. Patrick Doyle, said in the release. "While international same store sales growth was slightly under our expectations, we remain very confident in our continued ability to generate best-in-class growth, and are encouraged by the strong store growth we are seeing from our international franchisees. As a work-in-progress brand, we will always remain focused on areas we can improve, but I am extremely pleased that our steady strategy, solid fundamentals and strong alignment with franchisees and operators had us well positioned to sustain success and win."

Second quarter highlights:

• 6.6 percent increase in global comparable sales. 
• 3 percent decrease in consolidated revenues (2 percent in constant currencies) resulting from strategic refranchising initiative impact. 
• 8 percent systemwide sales growth from strong comparable sales and restaurant expansion.
• 24 percent growth in consolidated operating income increased, including benefit of $230 million in 2016 strategic charges.
• 36 percent growth in diluted EPS of $1.70 or EPS increase of 19 percent (excluding current quarter and prior year strategic charges of 3 and 20 cents per share respectively.
• $1.8 billion returned to shareholders from share repurchases and dividends.

2017 Recapitalization

This year, Domino's received $1.9 billion of gross proceeds to complete its recapitalization and borrowed $1.6 billion of fixed rate senior secured notes and $300 million of floating rate senior secured notes to enter a new $175 million variable funding note facility that replaces the previous $125.0 million variable funding note facility.

Recap proceeds will be used to repay $910.5 million in outstanding principal and interest from 2012 fixed rate notes and to pay 2017 recap costs and pre-fund some of the principal and interest on 2017 notes, with remaining money going to "general corporate purposes", the release said. 

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