Domino’s Pizza(R) Announces Fourth Quarter and Fiscal 2023 Financial Results
ANN ARBOR, Mich., Feb. 26, 2024
Global retail sales growth (excluding foreign currency impact) of 4.9% for the fourth quarter; 5.4% growth for fiscal 2023
U.S. same store sales growth of 2.8% for the fourth quarter; 1.6% growth for fiscal 2023
International same store sales growth (excluding foreign currency impact) of 0.1% for the fourth quarter; 1.7% growth for fiscal 2023
Global net store growth of 394 for the fourth quarter; 711 for fiscal 2023 (excluding closure of the Russia market, global net stores grew by 870 for fiscal 2023)
Income from operations up 3.4% for the fourth quarter; up 6.7% for fiscal 2023 (excluding $21.2 million pre-tax refranchising gain recorded in fourth quarter of 2022, income from operations up 13.0% for the fourth quarter; up 9.7% for fiscal 2023)
Board of Directors approves 25% increase in quarterly dividend to $1.51 per share; approves additional $1.0 billion share repurchase program
ANN ARBOR, Mich., Feb. 26, 2024 /PRNewswire/ — Domino’s Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world, announced results for the fourth quarter and fiscal 2023.
“Our strong fourth quarter demonstrates that our Hungry for MORE strategy is already delivering results. This strategy, which we recently unveiled at our Investor Day, is our plan to deliver MORE sales, MORE stores and MORE profits,” said Russell Weiner, Domino’s Chief Executive Officer. “Domino’s foundation has never been stronger. Our positive U.S. transactions and same store sales growth in both our delivery and carryout channels in the fourth quarter underscore the strength and momentum in our business. These results give us confidence in our brand and the Company’s ability to win and create meaningful value for our shareholders.”
Fourth Quarter and Fiscal 2023 Operational and Financial Highlights (Unaudited):
The tables below outline certain statistical measures utilized by the Company to analyze its performance, as well as key financial results. This historical data is not necessarily indicative of results to be expected for any future period. Refer to Comments on Regulation G below for additional details, including definitions of these statistical measures and certain reconciliations.
Fourth Quarter Fiscal Year
------------------ --------------------
2023 2022 2023 2022
-------- -------- --------- ---------
Global retail
sales: (in
millions of U.S.
dollars)
U.S. stores $2,831.2 $2,709.7 $ 9,026.1 $ 8,751.7
International
stores 2,897.4 2,746.4 9,249.7 8,788.2
------- ------- -------- --------
Total $5,728.6 $5,456.1 $18,275.8 $17,539.9
Fourth Quarter Fiscal Year
---------------- ----------------
2023 2022 2023 2022
------- ------- ------- -------
Global retail sales growth:
(versus prior year period,
excluding foreign currency
impact)
U.S. stores + 4.5 % + 2.7 % + 3.1 % + 1.3 %
International stores (1) + 5.2 % + 7.5 % + 7.7 % + 6.3 %
------- ------- ------- -------
Total (2) + 4.9 % + 5.2 % + 5.4 % + 3.9 %
Same store sales growth: (versus
prior year period)
U.S. Company-owned stores + 5.9 % + 3.4 % + 5.4 % (2.6) %
U.S. franchise stores + 2.6 % + 0.8 % + 1.4 % (0.7) %
------- ------- ------- -------
U.S. stores + 2.8 % + 0.9 % + 1.6 % (0.8) %
International stores (excluding
foreign currency impact) + 0.1 % + 2.6 % + 1.7 % + 0.1 %
(1) 2023 fourth quarter and fiscal year figures exclude the impact of the
Russia market. Including the impact of the Russia market, international
stores retail sales growth, excluding foreign currency impact, was 4.4%
and 7.3% for the fourth quarter and fiscal 2023, respectively.
(2) 2023 fourth quarter and fiscal year figures exclude the impact of the
Russia market. Including the impact of the Russia market, total global
retail sales growth, excluding foreign currency impact, was 4.5% and
5.2% for the fourth quarter and fiscal 2023, respectively.
U.S.
Company- U.S. Total
owned Franchise U.S. International
Stores Stores Stores Stores Total
--------- --------- ------ ------------- ------
Fourth
quarter of
2023 store
counts:
Store count
at
September
10, 2023 288 6,474 6,762 13,435 20,197
Openings -- 95 95 336 431
Closings -- (3) (3) (34) (37)
Store count
at December
31, 2023 288 6,566 6,854 13,737 20,591
======== ========= ====== ============= ======
Fourth
quarter
2023 net
store
growth -- 92 92 302 394
======== ========= ====== ============= ======
U.S.
Company- U.S. Total
owned Franchise U.S. International
Stores Stores Stores Stores Total
--------- --------- ------ ------------- ------
Fiscal 2023
store
counts:
Store count
at January
1, 2023 286 6,400 6,686 13,194 19,880
Openings 4 174 178 892 1,070
Closings (1) (9) (10) (349) (359)
Transfers (1) 1 -- -- --
-------- --------- ------ ------------- ------
Store count
at December
31, 2023 288 6,566 6,854 13,737 20,591
======== ========= ====== ============= ======
Fiscal 2023
net store
growth 3 165 168 543 711
======== ========= ====== ============= ======
Fiscal 2023
net store
growth,
excluding
Russia (1) 3 165 168 702 870
======== ========= ====== ============= ======
(1) As previously announced, the remaining 143 net stores in Russia were
reflected as closed in the third quarter of 2023. Including those
remaining closures, 159 net stores in Russia were closed in fiscal
2023. Refer to Comments on Regulation G and Russia Market discussion
below for additional details.
Fourth Quarter Fiscal Year
------------------------------ ------------------------------
(In millions,
except
percentages,
percentage
points, per
share data and
leverage Increase/ Increase/
ratio) 2023 2022 (Decrease) 2023 2022 (Decrease)
-------- -------- ---------- -------- -------- ----------
Total revenues $1,403.0 $1,392.2 + 0.8 % $4,479.4 $4,537.2 (1.3) %
U.S.
Company-owned
store gross
margin 14.7 % 16.3 % (1.6) pp 16.4 % 15.2 % + 1.2 pp
Supply chain
gross margin 10.9 % 8.2 % + 2.7 pp 10.2 % 8.9 % + 1.3 pp
Income from
operations(1) $257.2 $248.8 + 3.4 % $819.5 $767.9 + 6.7 %
Net income $157.3 $158.3 (0.6) % $519.1 $452.3 + 14.8 %
Diluted
earnings per
share $4.48 $4.43 + 1.1 % $14.66 $12.53 + 17.0 %
Leverage ratio 5.2x 5.8x (0.6)x
Net cash
provided by
operating
activities $590.9 $475.3 + 24.3 %
Capital
expenditures (105.4) (87.2) + 20.9 %
-------- -------- ----------
Free cash flow $485.5 $388.1 + 25.1 %
(1) Income from operations in the fourth quarter and fiscal 2022 included a
$21.2 million pre-tax gain associated with the refranchising of 114
U.S. Company-owned stores in Arizona and Utah (the "2022 Store Sale").
-- Revenues increased $10.7 million, or 0.8%, in the fourth quarter of 2023
as compared to the fourth quarter of 2022, primarily due to higher global
franchise royalties and fees, resulting from global retail sales growth
(excluding foreign currency impact) and higher supply chain revenues,
partially offset by a decrease in U.S. franchise advertising revenues.
U.S. franchise royalties and fees also benefited from an increase in fees
paid by U.S. franchisees for the use of the Company's technology
platforms. The increase in supply chain revenues was attributable to
higher order volumes, partially offset by a shift in the relative mix of
the products we sell and a decline in the Company's market basket pricing
to stores. The Company's market basket pricing to stores decreased 2.0%
during the fourth quarter of 2023 as compared to the fourth quarter of
2022. The decrease in U.S. franchise advertising revenues was primarily
driven by an increase in advertising incentives related to certain brand
promotions in the fourth quarter of 2023 as compared to the fourth
quarter of 2022.
-- U.S. Company-owned store gross margin decreased 1.6 percentage points in
the fourth quarter of 2023 as compared to the fourth quarter of 2022,