News

U.S. Q1 comps up 11% at Domino's Pizza

May 9, 2005

ANN ARBOR, Mich. — Domino's Pizza reported that its domestic same-store sales rose an impressive 11.2 percent for the first quarter, which ended March 27, 2005. According to a regulatory filing, the strong performance was comprised of an increase of 13.8 percent at company-owned units and a 10.8 percent boost at franchised units. Same-store sales at its international units rose 8.5 percent, on a constant dollar basis, for the same period.

For the quarter, Domino's reported net income of $24.9 million on revenue of $369.7 million. For the same period last year Domino's reported net income of $18.4 million on revenue of $318.7 million.

Domino's added a net 42 stores worldwide during the quarter.

The company credited much of the advance to heightened advertising expenditures in both 2004 and 2005. In 2005 alone, it ramped up its national marketing contribution rate from 3 percent to 4 percent of sales, and said it will boost that rate again by another 1 percent.

"Our same-store sales performance in the first quarter was truly special," said chairman and chief executive David Brandon. "Our track record as a brand and company is one of steady, controlled growth, as evidenced by the fact we have not had a negative annual same-store sales performance in the past 11 years."