ANN ARBOR, Mich., Sept. 28, 2015 /PRNewswire/ -- Domino's Pizza,
Inc. (NYSE: DPZ), the recognized world leader in pizza
delivery, today provided certain information regarding its third
quarter, which ended on September 6,
2015. Financial results for the third quarter are expected to
be fully reported on October 8,
2015.
Insurance Charge
The Company has retention programs for workers' compensation,
general liability and owned and non-owned automobile liabilities
for its corporate stores, offices and supply chain centers.
Insurance reserves relating to these retention programs are based
on independent actuarial estimates.
While the Company's claims activity in these areas has been
fairly consistent over the past several years, a more recent
increase in the frequency and severity of claims has resulted in an
independent actuarial determination that will require the Company
to record an estimated pre-tax expense of approximately
$5.7 million in the third quarter of
2015. This will result in an estimated six-cent decrease in the third quarter 2015
diluted earnings per share. The Company will continue to
focus on its safety efforts for all of its team members.
Top Line Growth Drivers
The Company announced strong same store sales and store growth
for the third quarter of 2015, which ended on September 6, 2015.
|
Third quarter
2015
|
Same store sales
growth: (versus prior year period)
|
|
|
Domestic
Company-owned stores
|
+ 11.5%
|
|
Domestic franchise
stores
|
+ 10.4%
|
|
Domestic
stores
|
+ 10.5%
|
|
International stores
(excluding foreign currency impact)
|
+ 7.7%
|
|
Domestic
Company-
owned Stores
|
|
Domestic
Franchise
Stores
|
|
Total
Domestic
Stores
|
|
International
Stores
|
|
Total
|
Store
counts:
|
|
|
|
|
|
|
|
|
|
Store count at
June 14, 2015
|
376
|
|
4,722
|
|
5,098
|
|
6,827
|
|
11,925
|
Openings
|
1
|
|
23
|
|
24
|
|
201
|
|
225
|
Closings
|
—
|
|
(10)
|
|
(10)
|
|
(21)
|
|
(31)
|
Store count at
September 6, 2015
|
377
|
|
4,735
|
|
5,112
|
|
7,007
|
|
12,119
|
Third quarter
2015 net change
|
1
|
|
13
|
|
14
|
|
180
|
|
194
|
Trailing four
quarters net change
|
1
|
|
95
|
|
96
|
|
742
|
|
838
|
About Domino's Pizza®
Founded in 1960, Domino's Pizza is the recognized world leader
in pizza delivery, with a significant business in carryout pizza.
It ranks among the world's top public restaurant brands with a
global enterprise of more than 12,100 stores in over 80
international markets. Domino's had global retail sales of over
$8.9 billion in 2014, comprised of
more than $4.1 billion in the U.S.
and nearly $4.8 billion
internationally. In the third quarter of 2015, Domino's had global
retail sales of over $2.1 billion,
comprised of over $1.0 billion in the
U.S. and over $1.1 billion
internationally. Its system is comprised of independent franchise
owners who accounted for nearly 97% of Domino's stores as of the
third quarter of 2015. Emphasis on technology innovation helped
Domino's generate approximately 50% of U.S. sales from digital
channels at the end of 2014, and reach an estimated run rate of
$4.0 billion annually in global
digital sales. Domino's features an ordering app lineup that covers
nearly 95% of the U.S. smartphone market and has recently
introduced several innovative ordering platforms, including Ford
SYNC®, Samsung Smart TV® and Pebble Watch, as
well as Twitter and text message using a pizza emoji. In
June 2014, Domino's debuted voice
ordering for its iPhone® and Android™ apps, a
true technology first within traditional and e-commerce retail.
Order – www.dominos.com
Mobile – http://mobile.dominos.com
Digital Info – anyware.dominos.com
Company Info – biz.dominos.com
Twitter – http://twitter.com/dominos
Facebook – http://www.facebook.com/dominos
YouTube – http://www.youtube.com/dominos
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995:
This press release contains forward-looking statements. You can
identify forward-looking statements because they contain words such
as "believes," "expects," "may," "will," "should," "seeks,"
"approximately," "intends," "plans," "estimates," or "anticipates"
or similar expressions that concern our strategy, plans or
intentions. These forward-looking statements relating to our
anticipated profitability, estimates in same store sales growth,
the growth of our international business, 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. However, actual results are subject to future
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. The risks and uncertainties that could cause actual
results to differ materially include: the level of our long-term
and other indebtedness as well as our ability to complete the
proposed refinancing on the terms described or at all;
uncertainties relating to litigation; consumer preferences,
spending patterns and demographic trends; the effectiveness of our
advertising, operations and promotional initiatives; the strength
of our brand in the markets in which we compete; our ability to
retain key personnel; new product, digital ordering and concept
developments by us, and other food-industry competitors; the
ongoing level of profitability of our franchisees; and our ability
and that of our franchisees to open new restaurants and keep
existing restaurants in operation; changes in operating expenses
resulting from changes in prices of food (particularly cheese),
labor, utilities, insurance, employee benefits and other operating
costs; the impact that widespread illness or general health
concerns may have on our business and the economy of the countries
where we operate; severe weather conditions and natural disasters;
changes in our effective tax rate; changes in foreign currency
exchange rates; changes in government legislation and regulations;
adequacy of our insurance coverage; costs related to future
financings; our ability and that of our franchisees to successfully
operate in the current credit environment; changes in the level of
consumer spending given the general economic conditions including
interest rates, energy prices and weak consumer confidence;
availability of borrowings under our variable funding notes and our
letters of credit; and changes in accounting policies. Important
factors that could cause actual results to differ materially from
our expectations are more fully described in our other filings with
the Securities and Exchange Commission, including under the section
headed "Risk Factors" in our annual report on Form 10-K. These
forward-looking statements speak only as of the date of this press
release, and you should not rely on such statements as representing
the views of the Company as of any subsequent date. Except as
required by applicable securities laws, we do not undertake to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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SOURCE Domino's Pizza, Inc.