Domino’s Pizza announced results for the first quarter, comprised of healthy growth in global retail sales and earnings per share. Global retail sales increased 4.6% in the first quarter, or 8.5% without the negative impact of changes in foreign currency exchange rates. U.S. same store sales grew 3.9% during the quarter versus the year-ago period, 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 1.8% during the quarter. The first quarter marked the 101st consecutive quarter of international same store sales growth and the 32nd consecutive quarter of U.S. same store sales growth. The Company had first quarter global net store growth of 200 stores, comprised of 27 net new U.S. stores and 173 net new international stores. Globally, the Company opened its 16,000th store during the first quarter. First quarter diluted EPS was $2.20, up 10.0% over the prior year quarter and beating analysts expectations of $2.09 per share.- On April 23, 2019, the Board of Directors declared a $0.65 per share quarterly dividend for shareholders of record as of June 14, 2019 to be paid on June 28, 2019.
- “It was a good quarter for our U.S. business, and I am very pleased with our balanced retail sales growth, driven by a healthy combination of solid same-store sales and unit growth,” said Ritch Allison, Domino’s Chief Executive Officer.
- “We remain focused on improving international comps, but I am encouraged by the strong unit growth in the first quarter – and remain confident in the fundamentals related to market share, retail sales growth and unit economics within this terrific segment of our business.”
- First Quarter 2019 Highlights:
- Revenues increased $50.6 million, or 6.4%, in the first quarter of 2019. The increase in revenues was due primarily to higher supply chain volumes resulting from higher retail sales. Higher same store sales and store count growth in both our U.S. and international markets also contributed to the increase in revenues. The increase in international franchise revenues was partially offset by the negative impact of changes in foreign currency exchange rates.
- Net Income increased $3.9 million, or 4.3%, in the first quarter of 2019. This increase was primarily driven by higher royalty revenues from U.S. and international franchised stores and higher supply chain volumes. These increases were partially offset by higher general and administrative expenses due to our continued investments in technological initiatives and investments in other areas. Higher net interest expense primarily due to a higher average debt balance as compared to the prior year also negatively impacted net income.
- Diluted EPS was $2.20 for the first quarter of 2019 versus $2.00 in the prior year quarter. This represents a $0.20 or 10.0% increase over the prior year quarter. This increase was driven by higher net income, as well as lower diluted share count, primarily as a result of the share repurchases made during the trailing four quarters.
- During the first quarter of 2019, the Company repurchased and retired 33,549 shares of its common stock under its Board of Directors-approved open market share repurchase program for approximately $8.1 million, or an average price of $242.74 per share. As of March 24, 2019, the end of the first quarter, the Company’s total remaining authorized amount for share repurchases was approximately $150.6 million.
- Liquidity
- As of March 24, 2019, the Company had approximately:
- • $83.1 million of unrestricted cash and cash equivalents;
- • $3.48 billion in total debt; and
- • $101.9 million of available borrowings under its $175.0 million variable funding notes, net of letters of credit issued of $48.1 million and $25.0 million of borrowings under its variable funding notes.
- The Company invested $12.2 million in capital expenditures in the first quarter of 2019, versus $13.6 million in the first quarter of 2018. Free cash flow, as reconciled below to net cash provided by operating activities, as determined under accounting principles generally accepted in the United States of America (“GAAP”), was approximately $84.8 million in the first quarter of 2019.
Read the full earnings report here: http://phx.corporate-ir.net/phoenix.zhtml?c=135383&p=quarterlyearnings