Dominos Pizza Inc (DPZ) SEC Filing 10-Q Quarterly report for the period ending Sunday, June 14, 2020

Exhibit 99.1

 

		For Immediate Release		Contact: Chris Brandon Director - Investor Relations (734) 323-7932

Domino’s Pizza^® Announces Second Quarter 2020 Financial Results

Global retail sales growth (excluding foreign currency impact) of 8.1%

U.S. same store sales growth of 16.1%

International same store sales growth of 1.3%

Global net store growth of 84

Diluted EPS up 36.5% to $2.99

ANN ARBOR, Michigan, July 16, 2020: Domino’s Pizza, Inc. (NYSE: DPZ),

the largest pizza company in the world based on global retail sales, announced results for the second quarter. Global retail sales increased 5.7% in the second quarter, or 8.1% excluding foreign currency impact. Global retail sales in the second quarter were positively impacted by U.S. same store sales, but were negatively impacted by temporary store closures in certain international markets. U.S. same store sales grew 16.1% during the quarter versus the year-ago period and were positively impacted by customer ordering behavior during the COVID-19 pandemic, continuing the positive sales momentum in the Company’s U.S. stores business. The international business also posted positive same store sales results, with growth of 1.3% during the quarter. The second quarter marked the 106^th consecutive quarter of international same store sales growth and the 37^th consecutive quarter of U.S. same store sales growth.

The Company had second quarter net store growth of 84 stores, comprised of 39 net new U.S. stores and 45 net new international stores. The number of temporary store closures in certain of the Company’s international markets has declined from its peak of approximately 2,400 temporary closures. Based on information reported to the Company by its master franchisees, the Company estimates that as of July 8, 2020, there were fewer than 600 international stores temporarily closed.

Diluted EPS for the second quarter was $2.99, up 36.5% over the prior year quarter.

On July 15, 2020, the Company’s Board of Directors declared a $0.78 per share quarterly dividend for shareholders of record as of September 15, 2020 to be paid on September 30, 2020.

“Our focus as a global brand and the commitment of our local operators remains steadfast on serving our customers and our communities with a convenient, affordable and safe food and service experience,” said Ritch Allison, Domino’s Chief Executive Officer. “I have never been more proud of our system of franchisees, operators and corporate team members for their continued passion and innovative spirit, which was evident during the second quarter.”

Second Quarter Highlights (Unaudited):

 

(dollars in millions, except per share data)		Second Quarter of 2020				Second Quarter of 2019				Two Fiscal Quarters of 2020				Two Fiscal Quarters of 2019
Net income		$	118.7			$	92.4			$	240.3			$	185.0
Weighted average diluted shares			39,746,479				42,236,507				39,688,663				42,219,649
Diluted EPS		$	2.99			$	2.19			$	6.05			$	4.38

 

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Revenues increased $108.4 million, or 13.4%, in the second quarter of 2020. This increase was primarily due to higher global retail sales resulting from U.S. same store sales growth and an increase in U.S. store counts during the trailing four quarters, resulting in higher supply chain, U.S. franchise and U.S. Company-owned stores revenues. These increases in revenues were partially offset by lower international franchise revenues resulting from temporary store closures in certain of the Company’s international markets due to the COVID-19 pandemic as well as pressure from the negative impact of changes in foreign currency exchange rates.

 

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Net Income increased $26.3 million, or 28.5%, in the second quarter of 2020. This increase was primarily driven by higher income from operations resulting from increased U.S. franchise royalty revenues as well as higher supply chain margins and a lower effective tax rate as compared to the prior year quarter driven by higher tax benefits from equity-based compensation. The increase in net income was partially offset by lower international franchise revenues and higher net interest expense resulting from a higher average debt balance and borrowings under the Company’s variable funding notes during the second quarter.