Dominos Pizza Inc (DPZ) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 8, 2019

Exhibit 99.1

 

		For Immediate Release		Contact: Tim McIntyre, Executive Vice President, Communication, Investor Relations and Legislative Affairs (734) 930-3563

Domino’s Pizza^® Announces Third Quarter 2019 Financial Results

Global retail sales growth of 5.8%, or 7.5% excluding foreign currency impact

U.S. same store sales growth of 2.4%

International same store sales growth of 1.7%

Global net store growth of 214

Diluted EPS up 5.1% to $2.05

Company announces new two- to three-year outlook

ANN ARBOR, Michigan, October 8, 2019: Domino’s Pizza, Inc. (NYSE: DPZ),

the largest pizza company in the world based on global retail sales, announced results for the third quarter, comprised of growth in global retail sales and earnings per share. Global retail sales increased 5.8% in the third quarter, or 7.5% without the negative impact of changes in foreign currency exchange rates. U.S. same store sales grew 2.4% during the quarter versus the prior year quarter, continuing the positive sales momentum in the Company’s U.S. business. The international division also posted positive results, with same store sales growth of 1.7% during the quarter. The third quarter marked the 103^rd consecutive quarter of international same store sales growth and the 34^th consecutive quarter of U.S. same store sales growth. The Company had third quarter global net store growth of 214 stores, comprised of 40 net new U.S. stores and 174 net new international stores.

Diluted EPS was $2.05 for the third quarter of 2019, up 5.1% over the prior year quarter, primarily resulting from higher income from operations, offset in part by a higher effective tax rate.

During the third quarter of 2019, the Company repurchased and retired 384,338 shares of its common stock under its Board of Directors-approved share repurchase program for approximately $93.7 million, or an average price of $243.79 per share. On October 4, 2019, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $1.0 billion of the Company’s common stock.

On October 4, 2019, the Company’s Board of Directors declared a $0.65 per share quarterly dividend for shareholders of record as of December 13, 2019 to be paid on December 27, 2019.

“It was a good quarter for Domino’s, as we continue to lean on our fundamental strength against a unique competitive environment,” said Ritch Allison, Domino’s Chief Executive Officer. “Strong unit growth and positive comps yielded a solid and balanced quarter of retail sales growth across both the U.S. and international businesses. We remain steadfastly focused on driving profitable growth for the Domino’s system, and most importantly, for our franchisees.”

Third Quarter 2019 Highlights:

 

(dollars in millions, except per share data)		Third Quarter of 2019				Third Quarter of 2018				Three Fiscal Quarters of 2019				Three Fiscal Quarters Of 2018
Net income		$	86.4			$	84.1			$	271.4			$	250.3
Weighted average diluted shares			42,040,291				43,067,191				42,158,447				43,675,627
Diluted EPS		$	2.05			$	1.95			$	6.44			$	5.73
Items affecting comparability (1)			—				—				—				0.07
Diluted EPS, as adjusted (1)		$	2.05			$	1.95			$	6.44			$	5.80

 

(1)	Refer to the Financial Results Comparability section on page three and the Comments on Regulation G section on pages four and five for additional details.

 

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Revenues increased $34.8 million, or 4.4%, in the third quarter of 2019. This increase was primarily due to an increase in worldwide store counts during the trailing four quarters as well as U.S. and international same store sales growth, resulting in higher supply chain and global franchise revenues. The increase in international franchise revenues was partially offset by the negative impact of changes in foreign currency exchange rates. These increases in revenues were also partially offset by lower U.S. Company-owned store revenues resulting from the previously disclosed sale of 59 Company-owned stores to certain of our existing U.S. franchisees during the second quarter of 2019.

 

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