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Domino's Pizza Inc

Domino's Pizza® Announces Third Quarter 2024 Financial Results

Global retail sales growth (excluding foreign currency impact) of 5.1%

U.S. same store sales growth of 3.0%

 International same store sales growth (excluding foreign currency impact) of 0.8%

Global net store growth of 72

Income from operations increased 5.0%; excluding the $1.4 million negative impact of foreign currency exchange rates on international franchise royalty revenues, income from operations increased 5.7%

ANN ARBOR, Mich., Oct. 10, 2024 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world, announced results for the third quarter of 2024.

"Our third quarter results once again demonstrated that our Hungry for MORE strategy is resonating, despite a pressured global marketplace," said Russell Weiner, Domino's Chief Executive Officer. "In our international business, we are on track for our 31st consecutive year of same store sales growth, demonstrating our sustained long-term track record of success. In the U.S., we drove our 4th straight quarter of profitable order count growth, highlighting that our strategies are driving positive outcomes. The Hungry for MORE pillar of Renowned Value will be the primary focus for our business in near-term as we look to continue to create our own tailwinds around the world. Renowned Value is a competitive advantage for Domino's and one where we are industry leaders. With the slate of initiatives we have in place, I am confident that we will continue to win and grow our market share across the globe for years to come."

Third Quarter 2024 Operational and Financial Highlights (Unaudited):

The tables below outline certain statistical measures utilized by the Company to analyze its performance, as well as key financial results. This historical data is not necessarily indicative of results to be expected for any future period. Refer to Comments on Regulation G below for additional details, including definitions of these statistical measures and certain reconciliations.

Third Quarter



Three Fiscal Quarters




2024



2023



2024



2023


Global retail sales: (in millions of U.S. dollars)













U.S. stores


$

2,168.4



$

2,062.8



$

6,602.5



$

6,195.0


International stores



2,223.6




2,160.9




6,581.9




6,352.2


Total


$

4,392.0



$

4,223.7



$

13,184.4



$

12,547.2


 

Third Quarter


Three Fiscal Quarters



2024


2023


2024


2023

Global retail sales growth: (versus prior year period,
   excluding foreign currency impact)









U.S. stores


+ 5.1 %


+ 0.9 %


+ 6.6 %


+ 2.5 %

International stores (1)


+ 5.1 %


+ 9.4 %


+ 6.5 %


+ 8.9 %

Total (2)


+ 5.1 %


+ 5.1 %


+ 6.5 %


+ 5.7 %










Same store sales growth: (versus prior year period)









U.S. Company-owned stores


+ 3.1 %


+ 2.9 %


+ 5.4 %


+ 5.2 %

U.S. franchise stores


+ 3.0 %


(0.7) %


+ 4.4 %


+ 0.8 %

U.S. stores


+ 3.0 %


(0.6) %


+ 4.5 %


+ 1.0 %

International stores (excluding foreign currency impact)


+ 0.8 %


+ 3.3 %


+ 1.1 %


+ 2.6 %



(1)


2024 and 2023 third quarter and three fiscal quarters figures each exclude the impact of the Russia market. Including the impact of the Russia market, international stores retail sales growth, excluding foreign currency impact, was 4.8% and 6.0% for the third quarter and three fiscal quarters of 2024, respectively, and 9.0% and 8.5% for the third quarter and three fiscal quarters of 2023, respectively.




(2)


2024 and 2023 third quarter and three fiscal quarters figures each exclude the impact of the Russia market. Including the impact of the Russia market, total global retail sales growth, excluding foreign currency impact, was 5.0% and 6.3% for the third quarter and three fiscal quarters of 2024, respectively, and 4.9% and 5.5% for the third quarter and three fiscal quarters of 2023, respectively.

 

U.S. Company-
owned Stores



U.S. Franchise
Stores



Total
U.S. Stores



International
Stores



Total


Third quarter of 2024 store counts:
















Store count at June 16, 2024



289




6,617




6,906




14,024




20,930


Openings



2




22




24




184




208


Closings



—




—




—




(136)




(136)


Store count at September 8, 2024



291




6,639




6,930




14,072




21,002


Third quarter 2024 net store growth



2




22




24




48




72


Trailing four quarters net store growth



5




163




168




637




805


 

Third Quarter


Three Fiscal Quarters

(In millions, except percentages, percentage points, per
share data and leverage ratio)


2024


2023


Increase/
(Decrease)


2024


2023


Increase/
(Decrease)

Total revenues


$1,080.1


$1,027.4


+ 5.1 %


$3,262.5


$3,076.4


+ 6.0 %














U.S. Company-owned store gross margin


16.8 %


15.8 %


+ 1.0 pp


17.3 %


17.1 %


+ 0.2 pp

Supply chain gross margin


10.6 %


10.0 %


+ 0.6 pp


11.0 %


9.9 %


+ 1.1 pp














Income from operations


$198.8


$189.4


+ 5.0 %


$605.3


$562.3


+ 7.7 %














Net income


$146.9


$147.7


(0.5) %


$414.7


$361.8


+ 14.6 %

Diluted earnings per share


$4.19


$4.18


+ 0.2 %


$11.80


$10.19


+ 15.8 %














Leverage ratio








4.9x


5.5x


(0.6)x














Net cash provided by operating activities








$446.9


$422.1


+ 5.9 %

Capital expenditures








(70.8)


(59.3)


+ 19.5 %

Free cash flow








$376.1


$362.9


+ 3.6 %

  • Revenues increased $52.8 million, or 5.1%, in the third quarter of 2024 as compared to the third quarter of 2023, primarily due to higher supply chain, U.S. franchise advertising and U.S. franchise royalties and fees revenues. The increase in supply chain revenues was primarily attributable to higher order volumes, as well as an increase in the Company's food basket pricing to stores, but was partially offset by a shift in the relative mix of the products sold by the Company. The Company's food basket pricing to stores increased 1.3% during the third quarter of 2024 as compared to the third quarter of 2023. U.S. franchise advertising revenues increased as a result of the return to the standard 6.0% advertising contribution rate at the beginning of the second quarter of 2024 following the end of the temporary reduction to 5.75% which began in the second quarter of 2023, as well as higher same store sales and net store growth. U.S. franchise royalties and fees increased as a result of higher same store sales and net store growth.

  • U.S. Company-owned store gross margin increased 1.0 percentage point in the third quarter of 2024 as compared to the third quarter of 2023, primarily driven by sales leverage due to higher customer transaction counts.

  • Supply chain gross margin increased 0.6 percentage points in the third quarter of 2024 as compared to the third quarter of 2023, primarily due to procurement productivity.

  • Income from operations increased $9.4 million, or 5.0%, in the third quarter of 2024 as compared to the third quarter of 2023. Excluding the negative impact of foreign currency exchange rates on international franchise royalty revenues of $1.4 million, income from operations increased $10.8 million, or 5.7%, in the third quarter of 2024 as compared to the third quarter of 2023. These increases were primarily a result of gross margin dollar growth within supply chain as well as higher U.S. franchise royalties and fees, each as discussed above. These increases were partially offset by higher general and administrative expenses of $6.8 million, primarily driven by higher labor costs.

  • Net income decreased $0.8 million, or 0.5%, in the third quarter of 2024 as compared to the third quarter of 2023 due to higher provision for income taxes. The Company's provision for income taxes increased $9.8 million in the third quarter of 2024 due to a higher effective tax rate and higher income before provision for income taxes. The effective tax rate increased to 20.4% in the third quarter of 2024 as compared to 15.9% in the third quarter of 2023, driven by lower foreign tax credits as well as a 0.9 percentage point unfavorable change in the impact of excess tax benefits from equity-based compensation, which is recorded as a reduction to the provision for income taxes.

  • Diluted EPS was $4.19 in the third quarter of 2024 as compared to $4.18 in the third quarter of 2023, representing a $0.01, or 0.2%, increase. While net income decreased in the third quarter of 2024 as compared to the third quarter of 2023, the increase in diluted EPS was driven by a lower weighted average diluted share count resulting from the Company's share repurchases during the trailing four quarters.

  • Net cash provided by operating activities was $446.9 million in the three fiscal quarters of 2024 as compared to $422.1 million in the three fiscal quarters of 2023. The Company spent $70.8 million on capital expenditures in the three fiscal quarters of 2024 as compared to $59.3 million in the three fiscal quarters of 2023, resulting in free cash flow of $376.1 million in the three fiscal quarters of 2024 as compared to $362.9 million in the three fiscal quarters of 2023. The increase in free cash flow was a result of higher net income, excluding non-cash operating activities and receipts for advertising contributions outpacing payments for advertising activities. These increases were partially offset by the negative impact of changes in operating assets and liabilities and higher investments in capital expenditures.

Quarterly Dividend

Subsequent to the end of the third quarter of 2024, on October 8, 2024, the Company's Board of Directors declared a $1.51 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 13, 2024, to be paid on December 27, 2024.

Share Repurchases

During the third quarter and three fiscal quarters of 2024, the Company repurchased and retired 443,302 and 499,674 shares of common stock for a total of $190.0 million and $215.0 million, respectively. As of September 8, 2024, the Company had a total remaining authorized amount for share repurchases of $926.3 million.

2024 Guidance

The Company now expects the following given the challenging macroeconomic environment and its impact on current business trends across the globe1:

  • Approximately 6% annual global retail sales growth.
  • Approximately 8% annual income from operations growth.
  • Global net store growth of 800 to 850.

2025 Guidance 

  • The Company expects annual global retail sales growth and annual income from operations growth to be generally in line with its 2024 expectations.

Long-Term Guidance (2026-2028)

The Company continues to expect the following1:

  • 7%+ Annual global retail sales growth.
  • 8%+ Annual income from operations growth.

1 Annual global retail sales growth and annual income from operations growth each exclude the impact of foreign currency.

Comments on Regulation G

In addition to the GAAP financial measures set forth in this press release, the Company has included non-GAAP financial measures within the meaning of Regulation G, including free cash flow and income from operations, excluding foreign currency impact. The Company has also included metrics such as global retail sales, global retail sales growth (excluding foreign currency impact), same store sales growth, net store growth, food basket pricing change, impact of changes in foreign currency exchange rates on international franchise royalty revenues and the leverage ratio, which are commonly used statistical measures in the quick-service restaurant industry that are important to understanding Company performance.

The Company uses "Global retail sales," a statistical measure, to refer to total worldwide retail sales at Company-owned and franchise stores. The Company believes global retail sales information is useful in analyzing revenues because franchisees pay royalties and advertising fees that are based on a percentage of franchise retail sales. The Company reviews comparable industry global retail sales information to assess business trends and to track the growth of the Domino's Pizza brand and believes they are indicative of the financial health of the Company's franchisee base. In addition, supply chain revenues are directly impacted by changes in franchise retail sales in the U.S. and Canada. As a result, sales by Domino's franchisees have a direct effect on the Company's profitability. Retail sales for franchise stores are reported to the Company by its franchisees and are not included in Company revenues. "Global retail sales growth" is calculated as the change of U.S. Dollar global retail sales against the comparable period of the prior year. "Global retail sales growth, excluding foreign currency impact" is calculated as the change of international local currency global retail sales against the comparable period of the prior year. The 2024 and 2023 global retail sales growth measures excluding the Russia market are calculated as the growth in retail sales excluding the retail sales from the Russia market from the 2023 and 2022 retail sales base. Changes in global retail sales growth, excluding foreign currency impact, are primarily driven by same store sales growth and net store growth.

The Company uses "Same store sales growth," a statistical measure, which is calculated by including only retail sales from stores that also had sales in the comparable weeks of both periods. International same store sales growth is calculated similarly to U.S. same store sales growth. Changes in international same store sales are reported excluding foreign currency impacts, which reflect changes in international local currency sales. Same store sales growth for transferred stores is reflected in their current classification.

The Company uses "Net store growth," a statistical measure, which is calculated by netting gross store openings with gross store closures during the period. Transfers between Company-owned stores and franchised stores are excluded from the calculation of net store growth.

The Company uses "Food basket pricing change," a statistical measure, which is calculated as the percentage change of the food basket (including both food and cardboard products) purchased by an average U.S. store (based on average weekly unit sales) from U.S. supply chain centers against the comparable period of the prior year. The Company believes that the food basket pricing change is important to investors and other interested persons to understand the Company's performance. As food basket prices fluctuate, revenues, cost of sales and gross margin percentages in the Company's supply chain segment also fluctuate. Additionally, cost of sales, gross margins and gross margin percentages for the Company's U.S. Company-owned stores also fluctuate.

The Company uses "Free cash flow," which is calculated as net cash provided by operating activities, less capital expenditures, both as reported under GAAP. The most directly comparable financial measure calculated and presented in accordance with GAAP is net cash provided by operating activities. The Company believes that the free cash flow measure is important to investors and other interested persons, and that such persons benefit from having a measure which communicates how much cash flow is available for working capital needs or to be used for repurchasing debt, making acquisitions, repurchasing common stock or paying dividends.

The Company uses "Income from operations, excluding foreign currency impact," which is calculated as income from operations as reported under GAAP, less the "impact of changes in foreign currency exchange rates on international franchise royalty revenues," a statistical measure. The most directly comparable financial measure calculated and presented in accordance with GAAP is income from operations. The impact of changes in foreign currency exchange rates on international franchise royalty revenues is calculated as the difference in international franchise royalty revenues resulting from translating current period local currency results to U.S. dollars at current period exchange rates as compared to prior period exchange rates. The Company believes that the impact of changes in foreign currency exchange rates on international franchise royalty revenues is important to investors and other interested persons to understand the Company's international royalty revenues given the significant variability in those revenues and that can be driven by changes in foreign currency exchanges rates. International franchise royalty revenues do not have a cost of sales component, so changes in these revenues have a direct impact on income from operations.

The Company uses the "Leverage ratio1," which is calculated as the Company's securitized debt related to its fixed-rate notes from the recapitalizations completed in 2021, 2019, 2018, 2017 and 2015 and borrowings under its variable funding notes, divided by Segment Income as defined by the Company under Accounting Standards Codification 280, Segment Reporting on a trailing four quarters basis. The Company has historically operated with a leverage ratio between four and six times. The Company reviews its leverage ratio on at least a quarterly basis and believes its leverage ratio is important to investors and other interested persons to understand the capital structure of the Company, and to assess the ability of the Company to meet its financial obligations.

The reconciliation of the leverage ratio for the third quarters of 2024 and 2023 is as follows:

September 8,
2024



September 10,
2023


2015 Ten-Year Notes


$

742,000



$

746,000


2017 Ten-Year Notes



940,000




945,000


2018 7.5-Year Notes



402,688




404,813


2018 9.25-Year Notes



379,000




381,000


2019 Ten-Year Notes



648,000




651,375


2021 7.5-Year Notes



826,625




830,875


2021 Ten-Year Notes



972,500




977,500


Total fixed-rate notes


$

4,910,813



$

4,936,563









Segment Income - third quarter of 2024 and 2023


$

229,278



$

217,287


Segment Income - second quarter of 2024 and 2023



227,400




223,618


Segment Income - first quarter of 2024 and 2023



241,843




203,615


Segment Income - fourth quarter of 2023 and 2022



294,600




260,328


Trailing four quarters Segment Income


$

993,121



$

904,848


Leverage ratio



4.9

x



5.5

x



(1)


The Company also calculates and reviews its senior leverage ratio and Holdco leverage ratio as defined in the indenture governing the Company's securitized debt.

Russia Market

On August 21, 2023, the Company's master franchisee that owned and operated Domino's Pizza stores in Russia announced its intent to file for bankruptcy with respect to the stores in that market. Therefore, as of August 21, 2023, the Company has considered the stores in the Russia market to be closed and they are excluded from the Company's ending store count as of the end of the third quarter of 2023. The Company has presented its statistical measure of global retail sales growth, excluding foreign currency impact, for the third quarter and three fiscal quarters of 2024 and 2023 excluding the impact of the retail sales from the Russia market. The Company believes the impact of the Russia market on its statistical measure of same store sales growth for the periods presented was immaterial, and it also believes the impact of the Russia market on its consolidated statements of income related to international franchise royalties and fee revenues and general and administrative expenses for the third quarter and three fiscal quarters of 2023 was immaterial.

Conference Call Information

The Company will file its Quarterly Report on Form 10-Q today. As previously announced, Domino's Pizza, Inc. will hold a conference call today at 8:30 a.m. (Eastern) to review its third quarter 2024 financial results. The webcast is available at ir.dominos.com and will be archived for one year.

About Domino's Pizza®

Founded in 1960, Domino's Pizza is the largest pizza company in the world, with a significant business in both delivery and carryout pizza. It ranks among the world's top public restaurant brands with a global enterprise of more than 21,000 stores in over 90 markets. Domino's had global retail sales of over $18.9 billion for the trailing four quarters ended September 8, 2024. Its system is comprised of independent franchise owners who accounted for 99% of Domino's stores as of the end of the third quarter of 2024. In the U.S., Domino's generated more than 85% of U.S. retail sales in 2023 via digital channels and has developed several innovative ordering platforms including seven unique ways to order Domino's.

Order – dominos.com
Company Info – biz.dominos.com
Media Assets – media.dominos.com

Please visit our Investor Relations website at ir.dominos.com to view news, announcements, earnings releases, investor presentations and conference webcasts.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

This press release contains various forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") that are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. The following cautionary statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the "safe harbor" provisions of the Act. You can identify forward-looking statements by the use of words such as "anticipates," "believes," "could," "should," "estimates," "expects," "intends," "may," "will," "plans," "predicts," "projects," "seeks," "approximately," "potential," "outlook" and similar terms and phrases that concern our strategy, plans or intentions, including references to assumptions. These forward-looking statements address various matters including information concerning future results of operations and business strategy, our anticipated profitability, estimates in same store sales growth, store growth and the growth of our U.S. and international business in general, our ability to service our indebtedness, our future cash flows, our operating performance, trends in our business and other descriptions of future events reflect the Company's expectations based upon currently available information and data. While we believe these expectations and projections are based on reasonable assumptions, such forward-looking statements are inherently subject to risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from our expectations are more fully described in our filings with the Securities and Exchange Commission, including under the section headed "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors, including but not limited to: our substantial indebtedness as a result of our recapitalization transactions and our ability to incur additional indebtedness or refinance or renegotiate key terms of that indebtedness in the future; the impact a downgrade in our credit rating may have on our business, financial condition and results of operations; our future financial performance and our ability to pay principal and interest on our indebtedness; the strength of our brand, including our ability to compete in the U.S. and internationally in our intensely competitive industry, including the food service and food delivery markets; our ability to successfully implement our growth strategy, including through our participation in the third-party order aggregation marketplace; labor shortages or changes in operating expenses resulting from increases in prices of food (particularly cheese), fuel and other commodity costs, labor, utilities, insurance, employee benefits and other operating costs or negative economic conditions; the effectiveness of our advertising, operations and promotional initiatives; shortages, interruptions or disruptions in the supply or delivery of fresh food products and store equipment; the impact of social media and other consumer-oriented technologies on our business, brand and reputation; the impact of new or improved technologies and alternative methods of delivery on consumer behavior; new product, digital ordering and concept developments by us, and other food-industry competitors; the additional risks our international operations subject us to; our ability to maintain good relationships with and attract new franchisees, and franchisees' ability to successfully manage their operations without negatively impacting our royalty payments and fees or our brand's reputation; our ability to successfully implement cost-saving strategies; our ability and that of our franchisees to successfully operate in the current and future credit environment; changes in the level of consumer spending given general economic conditions, including interest rates, energy prices and consumer confidence or negative economic conditions in general; our ability and that of our franchisees to open new restaurants and keep existing restaurants in operation and maintain demand for new stores; the impact that widespread illness, health epidemics or general health concerns, severe weather conditions and natural disasters may have on our business and the economies of the countries where we operate; changes in foreign currency exchange rates; changes in income tax rates; our ability to retain or replace our executive officers and other key members of management and our ability to adequately staff our stores and supply chain centers with qualified personnel; our ability to find and/or retain suitable real estate for our stores and supply chain centers; changes in government legislation and regulations, including changes in laws and regulations regarding information privacy, payment methods, advertising and consumer protection and social media; adverse legal judgments or settlements; food-borne illness or contamination of products or food tampering or other events that may impact our reputation; data breaches, power loss, technological failures, user error or other cyber risks threatening us or our franchisees; the impact that environmental, social and governance matters may have on our business and reputation; the effect of war, terrorism, catastrophic events, other geopolitical or reputational considerations or climate change; our ability to pay dividends and repurchase shares; changes in consumer tastes, spending and traffic patterns and demographic trends; changes in accounting policies; and adequacy of our insurance coverage. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. All forward-looking statements speak only as of the date of this press release and should be evaluated with an understanding of their inherent uncertainty. Except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission, or other applicable law, we will not undertake, and specifically disclaim, any obligation to publicly update or revise any forward-looking statements to reflect events or circumstances arising after the date of this press release, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by, or on behalf of, us. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

TABLES TO FOLLOW

 

Domino's Pizza, Inc. and Subsidiaries
 Condensed Consolidated Statements of Income
(Unaudited)




Fiscal Quarter Ended




September 8,
2024



% of
Total
Revenues



September 10,
2023



% of
Total
Revenues


(In thousands, except share and per share data)













Revenues:













U.S. Company-owned stores


$

89,173






$

86,277





U.S. franchise royalties and fees



144,074







138,322





Supply chain



651,314







618,086





International franchise royalties and fees



74,633







73,142





U.S. franchise advertising



120,925







111,534





Total revenues



1,080,119




100.0

%



1,027,361




100.0

%

Cost of sales:













U.S. Company-owned stores



74,205







72,614





Supply chain



582,167







556,578





Total cost of sales



656,372




60.8

%



629,192




61.2

%

Gross margin



423,747




39.2

%



398,169




38.8

%

General and administrative



103,991




9.6

%



97,203




9.5

%

U.S. franchise advertising



120,925




11.2

%



111,534




10.9

%

Income from operations



198,831




18.4

%



189,432




18.4

%

Other income



26,172




2.4

%



28,231




2.8

%

Interest expense, net



(40,387)




(3.7)

%



(42,089)




(4.1)

%

Income before provision for income taxes



184,616




17.1

%



175,574




17.1

%

Provision for income taxes



37,692




3.5

%



27,898




2.7

%

Net income


$

146,924




13.6

%


$

147,676




14.4

%

Earnings per share:













Common stock – diluted


$

4.19






$

4.18





Weighted average diluted shares



35,039,408







35,357,043





 

Domino's Pizza, Inc. and Subsidiaries
 Condensed Consolidated Statements of Income
(Unaudited)




Three Fiscal Quarters Ended




September 8,
2024



% of
Total
Revenues



September 10,
2023



% of
Total
Revenues


(In thousands, except share and per share data)













Revenues:













U.S. Company-owned stores


$

274,086






$

258,882





U.S. franchise royalties and fees



442,168







410,454





Supply chain



1,969,772







1,858,023





International franchise royalties and fees



220,295







213,308





U.S. franchise advertising



356,181







335,719





Total revenues



3,262,502




100.0

%



3,076,386




100.0

%

Cost of sales:













U.S. Company-owned stores



226,722







214,609





Supply chain



1,753,132







1,673,405





Total cost of sales



1,979,854




60.7

%



1,888,014




61.4

%

Gross margin



1,282,648




39.3

%



1,188,372




38.6

%

General and administrative



320,962




9.8

%



290,186




9.4

%

U.S. franchise advertising



356,181




10.9

%



335,719




10.9

%

Refranchising loss



158




0.0

%



149




0.0

%

Income from operations



605,347




18.6

%



562,318




18.3

%

Other income



18,871




0.6

%



13,267




0.4

%

Interest expense, net



(122,996)




(3.8)

%



(128,640)




(4.2)

%

Income before provision for income taxes



501,222




15.4

%



446,945




14.5

%

Provision for income taxes



86,496




2.7

%



85,119




2.7

%

Net income


$

414,726




12.7

%


$

361,826




11.8

%

Earnings per share:













Common stock – diluted


$

11.80






$

10.19





Weighted average diluted shares



35,145,732







35,516,434





 

Domino's Pizza, Inc. and Subsidiaries
 Condensed Consolidated Balance Sheets
(Unaudited)






September 8,
2024



December 31,
2023


(In thousands)







Assets







Current assets:







Cash and cash equivalents


$

189,084



$

114,098


Restricted cash and cash equivalents



185,439




200,870


Accounts receivable, net



278,707




282,809


Inventories



69,168




82,964


Prepaid expenses and other



38,725




30,215


Advertising fund assets, restricted



111,134




106,335


Total current assets



872,257




817,291


Property, plant and equipment, net



293,407




304,365


Operating lease right-of-use assets



215,040




207,323


Investment in DPC Dash



162,424




143,553


Other assets



231,938




202,367


Total assets


$

1,775,066



$

1,674,899


Liabilities and stockholders' deficit







Current liabilities:







Current portion of long-term debt


$

4,946



$

56,366


Accounts payable



97,847




106,267


Operating lease liabilities



40,806




39,330


Advertising fund liabilities



109,219




104,246


Other accrued liabilities



257,690




241,141


Total current liabilities



510,508




547,350


Long-term liabilities:







Long-term debt, less current portion



4,970,687




4,934,062


Operating lease liabilities



186,981




179,548


Other accrued liabilities



83,528




84,306


Total long-term liabilities



5,241,196




5,197,916


Total stockholders' deficit



(3,976,638)




(4,070,367)


Total liabilities and stockholders' deficit


$

1,775,066



$

1,674,899


 

Domino's Pizza, Inc. and Subsidiaries
 Condensed Consolidated Statements of Cash Flows
(Unaudited)




Three Fiscal Quarters Ended




September 8,
2024



September 10,
2023


(In thousands)







Cash flows from operating activities:







Net income


$

414,726



$

361,826


Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization



60,974




54,999


Refranchising loss



158




149


Loss on sale/disposal of assets



501




547


Amortization of debt issuance costs



3,685




3,858


Benefit for deferred income taxes



(7,524)




(12,191)


Non-cash equity-based compensation expense



31,541




26,507


Excess tax benefits from equity-based compensation



(21,609)




(2,973)


Provision for losses on accounts and notes receivable



250




1,342


Unrealized gain on investments



(18,871)




(13,267)


Changes in operating assets and liabilities



(18,968)




7,682


Changes in advertising fund assets and liabilities, restricted



2,016




(6,349)


Net cash provided by operating activities



446,879




422,130


Cash flows from investing activities:







Capital expenditures



(70,801)




(59,271)


Other



(1,094)




(743)


Net cash used in investing activities



(71,895)




(60,014)


Cash flows from financing activities:







Repayments of long-term debt and finance lease obligations



(15,947)




(41,349)


Proceeds from exercise of stock options



34,669




5,806


Purchases of common stock



(214,999)




(210,847)


Tax payments for restricted stock upon vesting



(10,706)




(5,240)


Payments of common stock dividends and equivalents



(106,015)




(85,564)


Net cash used in financing activities



(312,998)




(337,194)


Effect of exchange rate changes on cash



(589)




(304)


Change in cash and cash equivalents, restricted cash and cash equivalents



61,397




24,618









Cash and cash equivalents, beginning of period



114,098




60,356


Restricted cash and cash equivalents, beginning of period



200,870




191,289


Cash and cash equivalents included in advertising fund assets, restricted,
   beginning of period



88,165




143,559


Cash and cash equivalents, restricted cash and cash equivalents and
   cash and cash equivalents included in advertising fund assets, restricted,
   beginning of period



403,133




395,204









Cash and cash equivalents, end of period



189,084




80,879


Restricted cash and cash equivalents, end of period



185,439




202,307


Cash and cash equivalents included in advertising fund assets, restricted,
   end of period



90,007




136,636


Cash and cash equivalents, restricted cash and cash equivalents and cash and
   cash equivalents included in advertising fund assets, restricted,
   end of period


$

464,530



$

419,822


 

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SOURCE Domino's Pizza, Inc.