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Posted on Tue, Jul 24, 2012 : 8:23 a.m.

Domino's Pizza reports rise in profits

By Lizzy Alfs

This story has been updated following a conference call with Domino's Pizza CEO Patrick Doyle.

Domino’s Pizza posted an 11.5 percent increase in profits in the second quarter of 2012, according to an earnings report released this morning.


Domino's Pizza's headquarters in Ann Arbor Township.

Melanie Maxwell |

The Ann Arbor Township-based chain reported a net income of $28.1 million for the quarter that ended June 17, up from $25.2 million during the same period in 2011.

Revenue fell to $376.1 million from $384.9 million last year. The reason, according to the report: "Lower domestic supply chain volumes, lower company-owned store revenues resulting from the sale of company-owned stores in 2011 and the negative impact on international royalties of changes in foreign currency exchange rates."

At stores open at least a year — a key measurement used to gauge a retailer's performance — Domino’s reported a sales increase of 1.7 percent domestically and 5.7 percent internationally.

The company continued to expand during the quarter, gaining three stores in the U.S. and 111 internationally. Domino’s now has 5,023 international stores and 4,901 domestic stores.

"We've posted another solid quarter, with robust international store growth,” said Domino’s CEO Patrick Doyle in a statement. “First half 2012 domestic store economics improved markedly versus last year, which we think contributed to a decrease in U.S. store closures. With a diversified base of nearly 10,000 locations around the globe, we drove steady demand for our brand and sales for our products worldwide."

The company’s international store count first exceeded its domestic store count last quarter — something Doyle called an “incredible milestone” for the company.

Doyle said in May he hopes Domino’s will hit 10,000 total stores in the near future.

"One of the great strengths of our international portfolio is that it is not greatly concentrated in any one geographical area," Doyle said during a conference call Tuesday morning.

He said some of the fastest growing international markets are in Brazil, Germany and Malaysia.

In the past few years, Domino's has reinvented its brand by rolling out several successful marketing campaigns and redesigning its pizza, helping to rake in $105.3 million in sales in its 2011 fiscal year. The 2011 sales marked a 19.8 percent increase over its 2010 fiscal year.

The company has continued to make series of menu changes, including introducing chicken products, adding artisan pizzas, redeveloping cheesy bread, adding parmesan bread bites and introducing a gluten-free pizza crust.

Founded in 1960, Domino's operates a network of 9,924 franchised and company-owned stores in the U.S. and 72 countries worldwide.

Following Domino’s earnings report, the company’s stock (NYSE: DPZ) was up 3.46 percent to $33.10 at 10:39 a.m.

Lizzy Alfs is a business reporter for Reach her at 734-623-2584 or email her at Follow her on Twitter at



Tue, Jul 24, 2012 : 4:18 p.m.

Domino's Rise in Profits is worth a news article? is it not easy to see a rise in profits when pizza from Domino's cost $15 or more?


Wed, Jul 25, 2012 : 2 a.m.

you can get a pizza 7.99


Tue, Jul 24, 2012 : 4:02 p.m.

Look .....I'm gonna keep this G rated but pizza is like " ---" when it's good it's great and when it's not's still pretty good


Tue, Jul 24, 2012 : 3:10 p.m.

Thank Goodness somebody is making money in this economy! I really look forward to November, when democracy is in action and we can get rid of this Anti-Business Government! Look at Domino's, they increased revenue but had a decrease in profits. Then you pile on regulations, health care cost, taxes and its a wonder how companies can stay in business!


Tue, Jul 24, 2012 : 3:58 p.m.

Tom....kinda funny how you just did the same thing.

Ghost of Tom Joad

Tue, Jul 24, 2012 : 3:40 p.m.

-insert unrelated partisan rant here. oh sorry, you've already done that.


Tue, Jul 24, 2012 : 2:35 p.m.

Gave Domino's another chance a few nights ago, not even remotely good (Major had no complaints though) guess I'm spoiled on Pizza House and Cottage Inn..

Ghost of Tom Joad

Tue, Jul 24, 2012 : 3:40 p.m.

or non-cardboard flavored pizza, in general.

Tom Todd

Tue, Jul 24, 2012 : 2:12 p.m.

here's to hoping some of this profit trickles down to those who do the work.


Thu, Jul 26, 2012 : 3:21 a.m.

Ya can't increase taxes on the job creators.


Wed, Jul 25, 2012 : 1:58 a.m.

ya its called a job


Tue, Jul 24, 2012 : 3:14 p.m.

Don't hold your breath.


Tue, Jul 24, 2012 : 1:09 p.m.


Lizzy Alfs

Tue, Jul 24, 2012 : 1:16 p.m.

It is definitely not 2011 anymore! Thanks.


Tue, Jul 24, 2012 : 1:07 p.m.

Did this happen after Dave Brandon left the company?

Lizzy Alfs

Tue, Jul 24, 2012 : 2:43 p.m.

The pizza redesign process started under Brandon, but Doyle steered the company through its launch. It was after that redesign that the company started seeing increased profits and then proceeded to change its other menu offerings. Check out this story: