Global retail sales growth (excluding foreign currency impact) of 17.1%
U.S. same-store sales growth of 3.5%
International same-store sales growth of 13.9%
Global net store growth of 238
Diluted EPS up 2.3% to $3.06
Completed $1.0 billion accelerated share repurchase transaction in July 2021
ANN ARBOR, MI (StLouisRestaruanatReview) 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 21.6% in the second quarter, or 17.1%, excluding foreign currency impact. U.S. same-store sales grew 3.5% during the quarter versus the year-ago period, continuing the positive sales momentum in the Company’s U.S. stores business. The international business also posted strong results, with same-store sales growth of 13.9% during the quarter. The second quarter marked the 110th consecutive quarter of international same-store sales growth and the 41st consecutive quarter of U.S. same-store sales growth. The Company had a second-quarter global net store growth of 238 stores, comprised of 35 net U.S. store openings and 203 net international store openings.
“I am very pleased with our strong global retail sales and store growth momentum during the second quarter, which demonstrated the power of our investments in innovation, our focus on food quality and superior service, and our dynamic franchisees who are dedicated to serving their local neighborhoods,” said Ritch Allison, Domino’s Chief Executive Officer. “Given our current operating environment, we are watching our two-year sales trends anchored to pre-Covid fiscal 2019 results. I am pleased that in the second quarter, our cumulative two-year same-store sales were up 19.6% domestically and 15.2% internationally, signifying meaningful and sustained growth.”
Diluted EPS for the second quarter was $3.06, an increase of 2.3% over the prior-year quarter. The second quarter diluted EPS, as adjusted, was $3.12, an increase of 4.3% over the prior-year quarter. Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information.
In connection with the Company’s recapitalization transaction, as further discussed below, the Company borrowed $1.85 billion and used a portion of the proceeds to repay its remaining debt under its 2017 five-year fixed rate and 2017 five-year floating-rate notes. The Company also entered into a $1.0 billion accelerated share repurchase agreement (the “ASR Agreement”) with a counterparty, which was completed subsequent to the end of the second quarter. In connection with the ASR Agreement, the Company received and retired a total of 2,250,786 shares of its common stock at an average price of $444.29, including 2,012,596 shares of its common stock received and retired during the second quarter.
Subsequent to the end of the second quarter, on July 20, 2021, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $1.0 billion of the Company’s common stock. This repurchase program replaces the Company’s previously approved $1.0 billion share repurchase program, which was fully utilized in connection with the ASR Agreement.
Also, on July 20, 2021, the Company’s Board of Directors declared a $0.94 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2021, to be paid on September 30, 2021.
NOTE: This is NOT the complete release. Visit Domino’s website for complete details.
