In accord with analysts’ forecast of 4Q revenue and profit, the results have revealed better-than-expected figures – Domino’s Pizza Inc. reported double-digit same-store sales growth.
Upon reach, Domino’s strongly believe it resulted better due to higher supply chain volumes and sales of equipment to stores in connection with its store reimaging program. Moreover, the company was also fortunate enough to earn extra in its fiscal year.
Pizza giant claimed to have had boosted its quarterly dividend by 23% to 38 cents/share.
Same-store sales, which exclude recently opened or closed locations, grew 10.7% at Domino’s domestic franchise stores, as company-owned domestic stores logged 10% growth. Analysts had believed it to be 6.3% in growth at franchise stores and 5.7% at the stores of Domino’s owns.
On a slighter modification within its recipe; making thicker crust and a new mix of cheese, Domino’s results have generally yielded a positive outlook in recent years after struggling with criticisms like not being that tasty as competitors.
“Our network of strong franchisees has become even more profitable during these years of continued positive same-store sales growth.” – Domino’s chief executive, J. Patrick Doyle
In comparison with a year ago, for all the Qs, Domino’s reported earnings worth US$ 62.8 million, i.e. US$ 1.18/share – the previous figures where US$ 48 million, i.e. 85 cents/share. Overall, the earnings were 1.15/share, BULLISH from 91 cents a year ago – without items like recapitalization expenses and the extra week of sales. Reuters forecast was US$ 1.10/share earnings. The revenue rate hiked with 15% at US$ 741.2 million – and that too beating analysts’ prediction of US$ 707 million.
INSIGHT: Domino’s widened its operating margin to 31.2% in 4Q from 29.5%, a year ago.
