Domino's Pizza reports another rise in profits as strong performance continues
Domino's Pizza Inc. posted an 11.6 percent increase in profits in the second quarter of 2011, continuing the Ann Arbor Township-based chain's market momentum.
Domino's CEO J. Patrick Doyle said the company's increasingly diversified sales model is driving profits.
Photo courtesy of Domino's
Domino's reported a 4.8 percent uptick in sales at U.S. stores open at least a year — a key measurement used to gauge a retailer's performance. At foreign stores open at least a year, sales were up 7.4 percent.
"The sales momentum in our business continues, resulting in a strong first half for 2011," Domino's CEO J. Patrick Doyle said in a statement. "Domino's is in over 70 markets around the world; a diversified global presence that has driven steady, positive results. We like our position in the category; and we have tremendous energy to produce even better returns for our shareholders and franchisees going forward."
Global retail sales — a measurement of all sales at Domino's stores, including franchised locations — rose 14.5 percent. That figure was 9.6 percent when foreign currency rate fluctuations are excluded.
The company now has 4,909 U.S. stores, including 4,482 franchised locations, and 4,470 foreign stores.
Domino's also announced this morning that it plans to refinance securitized debt. The company said it would replace a $1.45 billion balance on a securitized financing facility with new debt consisting of $1.525 billion of fixed-rate notes and $100 million of variable funding notes.
The company wants to complete the refinancing by the third quarter.
Investors responded favorably to Domino's earnings report. The company's stock (NYSE: DPZ) was up 4 percent to $27.12 at 9:56 a.m.
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Comments
Kai Petainen
Wed, Jul 27, 2011 : 3:50 a.m.
Watched the Cramer interview -- it's a pretty decent interview. The CEO handled it nicely. At the very end, the CEO mentioned the popular I-Phone Dominos App. The AnnArbor news might want to do a story on that, as it might have local connections?
snoopdog
Wed, Jul 27, 2011 : 1:38 a.m.
I spend around 150 bucks a week taking pizza/breadsticks/wings/pop to my customers. I ask them and they tell me by a large margin, their number one choice is Jet's pizza. Jet's also has the best deal for large orders. When I order for my famly, Jet's is the number one choice but Domino's is light years better than a couple years ago. Marco's pizza sucks ( their sandwiches are fine), and Hungry Howie's and Little Ceaser's are the worst. They are cheap and light on the toppings. I don't have time to waste. Jet's is generous with the toppings and their crust is the best and their pizza's weigh a ton for their size ! Good Day
Kai Petainen
Tue, Jul 26, 2011 : 11:53 p.m.
looking at the earnings momentum, it seems like the turnaround in earnings started with the Sep. 2009 earnings as they were at 0.17 vs. 0.13 from the year before. so the company is enjoying some great earnings momentum, and the stock might run up higher, as momentum/growth investors may like it. but, i hate insider selling. looks like Brandon was able to make some money off the rise in stock, as he sold some shares. i see $27 million on march 2011, and another sale of $850K in may 2011 at $24.53 per share. i don't like insider selling, and so the recent insider selling can create a concern for some investors. also, there was some institutional selling as well. you can see the insider transactions here: <a href="http://finance.yahoo.com/q/it?s=DPZ+Insider+Transactions" rel='nofollow'>http://finance.yahoo.com/q/it?s=DPZ+Insider+Transactions</a> note: the CEO was on Jim Cramer tonight. <a href="http://www.cnbc.com/id/43899655" rel='nofollow'>http://www.cnbc.com/id/43899655</a>
Craig Lounsbury
Wed, Jul 27, 2011 : 2:59 a.m.
insider selling is just usable information. Nothing to hate or like just use. Same with institutional buying and selling. Instead of "hating" it use it.
Phil Lozen
Tue, Jul 26, 2011 : 9:07 p.m.
Hi Genetracy, Phil from Domino's here. Thanks for asking! Just last Friday we made a donation of $10,000 to Ann Arbor's own Food Gatherers, and together our team members donated a few tons of food to this very worthwhile local organization. We do quite a bit on the local and national level (our primary charitable focus is St. Jude Children's Research Hospital) but we don't do it for publicity, which is likely why you're asking. We do it because it's the right thing to do.
Kai Petainen
Tue, Jul 26, 2011 : 6:50 p.m.
I don't think it was the departure of the CEO... unless the CEO was against the internet, I think the strong performance is linked to the strong results from web sales. <a href="http://www.computerweekly.com/Articles/2011/02/15/245448/Web-boosts-annual-results-at-Dominos-Pizza.htm" rel='nofollow'>http://www.computerweekly.com/Articles/2011/02/15/245448/Web-boosts-annual-results-at-Dominos-Pizza.htm</a> <a href="http://www.computerweekly.com/Articles/2011/07/25/247405/Domino39s-Pizza-delivers-51-increase-in-online-sales.htm" rel='nofollow'>http://www.computerweekly.com/Articles/2011/07/25/247405/Domino39s-Pizza-delivers-51-increase-in-online-sales.htm</a>
Craig Lounsbury
Tue, Jul 26, 2011 : 10:57 p.m.
It was what happened when the old CEO left and the new CEO took over. You can spin it any way you want, David Brandon was an average CEO. Nothing more than average period.
Craig Lounsbury
Tue, Jul 26, 2011 : 5:14 p.m.
"Investors responded favorably to Domino's earnings report. The company's stock (NYSE: DPZ) was up 4 percent to $27.12 at 9:56 a.m." evidently they responded favorably to David Brandon's departure in early January of 2010. Its up 220 percent since he announced his departure for the U of M AD job.
genetracy
Tue, Jul 26, 2011 : 4:38 p.m.
Whta has Dominos done lately to help the poor and homeless?
genetracy
Wed, Jul 27, 2011 : 1:53 a.m.
No Snoopdog, I am just your typical whining Ann Arbor liberal who resents any type of corporate or business success.
snoopdog
Wed, Jul 27, 2011 : 12:56 a.m.
What the H E Double Toothpicks Are You Talking About ? Are you from Pluto ? Good Day
Daveguy
Tue, Jul 26, 2011 : 4:53 p.m.
A lot more than most. <a href="http://www.facebook.com/foodgatherers" rel='nofollow'>http://www.facebook.com/foodgatherers</a> <a href="http://www.foodgatherers.org/?module=Page&sID=grillin" rel='nofollow'>http://www.foodgatherers.org/?module=Page&sID=grillin</a> And lets not forget... <a href="http://www.annarbor.com/business-review/billionaire-tom-monaghan-pledges-half-of-his-fortune-to-charity/">http://www.annarbor.com/business-review/billionaire-tom-monaghan-pledges-half-of-his-fortune-to-charity/</a>
mun
Tue, Jul 26, 2011 : 3:33 p.m.
Does this mean that Domino's tastes like pizza and not cardboard?