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'Pizza Chain of the Year' Domino's Reports First Quarter EPS Increase of 20 Percent

 

Domino's Pizza, Inc. reported financial results for the first quarter ended March 27, 2011. Domestic same store sales declined 1.4 percent as a result of comparisons to a strong first quarter of 2010. Last year, Domino's posted a 14.3 percent same store sales increase creating a strong two-year blended growth.

International same store sales grew at a rate of 8.3 percent, marking the 69th quarter of international double digit growth, according to the company. Diluted EPS was 42 cents, a 20 percent increase vs. last year's same quarter.

"This quarter clearly demonstrated that the combination of a new, bigger sales base domestically, a best-in-class international business, great franchisees and an optimized capital structure, drove strong results. We're off to a great start in 2011," said J. Patrick Doyle, President and CEO of Domino's Pizza.

Additionally, company executives reported Domino's had been named "Pizza Chain of the Year" by the industry's leading trade publication, Pizza Today.

First Quarter Highlights

  • Revenues were up 2.1 percent on higher international revenue and the positive impact of currency exchange rates, offset by lower domestic revenues, primary due to the sale of 26 company-owned stores to a franchisee.
  • Higher international royalty revenues and store growth, along with lower general and administrative (G&A) expense and the sale of company stores, led to a net income increase of 10.6 percent
  • Diluted EPS was 43 cents on an as-reported basis for the first quarter versus 41 cents in the prior-year quarter. Diluted EPS, as adjusted, was 42 cents for the first quarter versus 35 cents in last year's quarter, an increase of seven cents, or 20 percent.
  • Global retail sales were up 8.2 percent in the first quarter, or up 6.2 percent when excluding foreign currency impact.
  • During the first quarter of 2011, the Company sold 26 company-owned stores to a current franchisee for a pre-tax gain of approximately $1.1 million, recorded as an offset to G&A expense

 

(05-05-11)

Source: ANN ARBOR, Mich., /PRNewswire

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