Founded as a single store in 1960, Domino’s Pizza (DPZ, Financial) today stands as the recognized world leader in pizza delivery. The company has over 11,250 stores in more than 75 countries. Known to sell more than 400 million pizzas worldwide every year, DPZ has an array of yummy menu choices to offer, ranging from Handmade Pan Pizza, Oven Baked Sandwiches, Parmesan Bread Bites, Stuffed Cheesy Bread and Chocolate Lava Crunch Cake to its core hand-tossed product, reinvented from the crust up with new sauce, cheese and garlic-seasoned crust.
Third-quarter performance
Revenues were up 10.5% for the third quarter versus the prior year period, due primarily to higher supply chain revenues from increased volumes in the supply chain centers and elevated commodity prices, specifically cheese, as well as increased sales of equipment and supplies to stores as our store reimaging program accelerates. Additionally, sales and store growth contributed to increased revenues in all business segments. Net Income was up 16.3% for the third quarter versus the prior year period, primarily driven by domestic and international same store sales growth and global store count growth, as well as increased supply chain volumes.
Diluted EPS was 63 cents for the third quarter versus 53 cents in the prior year quarter. The diluted EPS of 63 cents for the quarter was 12 cents, or 23.5% higher than the prior year adjusted EPS of 51 cents. This increase was due to higher net income and lower weighted average diluted shares outstanding.
During the third quarter of 2014, the company repurchased and retired 242,700 shares of its common stock under its open market share repurchase program for approximately $17.4 million, or an average price of $71.69 per share. As of October 7, 2014, the company had authorization for repurchases of approximately $132.7 million remaining under the program.
In the third quarter of 2014, Domino's had global retail sales of over $2.0 billion, comprised of $0.9 billion in the U.S. and $1.1 billion internationally. The emphasis on technology innovation helped Domino's generate approximately 40% of U.S. sales from its digital channels in 2013, as well as reach an estimated $3 billion annually in global digital sales. DPZ declared a 25 cent per share quarterly dividend for shareholders. The company had $30.9 million of unrestricted cash and cash equivalents as of the recent quarter. (Source: Company’s Website)
Tapping the Indian market
Domino’s Pizza India operations are the fastest growing operations when it comes to global growth of DPZ. It has significantly strengthened its position in this part of the globe. It has already boosted a loyal customer base in India. India is believed to replace U.K. very soon as the largest international market for DPZ. The company is focusing on increasing its market share here with aggressive opening of stores.
Growth plans
DPZ is going to venture in the market of Myanmar after 2015. It has also plans of entering Cambodia net year. Within a period of 8 years, DPZ is planning to double its robust network in the Asia Pacific region. The company is all set to roll out new outlets in the Asia Pacific region, increasing the store count to 3,500.
To end
Although obesity is catching up at an accelerating pace, pizzas have always been a raging favorite amongst people of all age groups. The company is known to create shareholder returns and will make a delicious choice for the investors. Despite a palpable slowdown in the eating out industry across the globe, DPZ has emerged as a steady player.
Hectic lifestyles and eating out while spending quality time with family- these two requirements were tapped by this pizza delivery expert and it started the trend of delivering pizza within 30minutes. It is expected to create shareholder returns.
