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ANN ARBOR, Mich., March 1, 2022 /PRNewswire/ — Domino’s Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world, announced results for the fourth quarter and fiscal 2021. Global retail sales were benefited in the fourth quarter and fiscal 2020 by the inclusion of an extra, or 53rd week. Global retail sales increased 9.0% in the fourth quarter of 2021, excluding the negative impact of foreign currency and the 53rd week impact. Global retail sales increased 11.7% in fiscal 2021, excluding the positive impact of foreign currency and the 53rd week impact. Global retail sales increased 1.0% in the fourth quarter of 2021, excluding the negative impact of foreign currency. Global retail sales increased 8.9% in fiscal 2021, excluding the positive impact of foreign currency. Without adjusting for the impacts of foreign currency and the 53rd week, global retail sales declined 0.2% in the fourth quarter and increased 10.4% in fiscal 2021.

U.S. same store sales increased 1.0% during the quarter and 3.5% for the full year. International same store sales increased 1.8% during the quarter and 8.0% for the full year. The fourth quarter marked the 112th consecutive quarter of international same store sales growth. The Company had fourth quarter global net store growth of 468 stores, comprised of 89 net U.S. store openings and 379 net international store openings. In fiscal 2021, the Company had global net store growth of 1,204 stores, comprised of 205 net U.S. store openings and 999 net international store openings.

Diluted EPS for the fourth quarter of 2021 was $4.25, an increase of 10.4% over the prior year quarter. Diluted EPS for fiscal 2021 was $13.54, an increase of 9.3% over the prior year. Diluted EPS for both the fourth quarter and fiscal 2020 was positively impacted by the inclusion of the 53rd week. Diluted EPS for fiscal 2021 was negatively impacted by expenses associated with the Company’s April 2021 recapitalization transaction (the “2021 Recapitalization”). Diluted EPS for the fourth quarter of 2021 was $4.25, an increase of 22.8% over diluted EPS, as adjusted, of $3.46 in the fourth quarter of 2020. Diluted EPS, as adjusted, for fiscal 2021 was $13.60, an increase of 13.2% over diluted EPS, as adjusted, of $12.01 in fiscal 2020. Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information.

Subsequent to the end of the fourth quarter of 2021, on February 24, 2022, the Company’s Board of Directors declared a $1.10 per share quarterly dividend on its outstanding common stock for shareholders of record as of March 15, 2022, to be paid on March 30, 2022.

“Throughout 2021, the strength of our franchisees and our excellent unit economics continued to deliver outstanding store and retail sales growth for the Domino’s brand,” said Ritch Allison, Domino’s Chief Executive Officer. “When we compare our 2021 results back to pre-pandemic 2019, the Domino’s brand grew by nearly $3.5 billion in global retail sales over the last two years. Looking forward, we remain focused on leading with innovation and leveraging our global scale to drive outstanding returns for our franchisees and shareholders.”

(dollars in millions, except share and per share data)

 

Fourth
Quarter of
2021

   

Fourth
Quarter of
2020

   

Fiscal
2021

   

Fiscal
2020

 

Net income

 

$

155.7

   

$

151.9

   

$

510.5

   

$

491.3

 

Weighted average diluted shares

   

36,668,295

     

39,463,552

     

37,691,351

     

39,640,791

 

Diluted EPS

 

$

4.25

   

$

3.85

   

$

13.54

   

$

12.39

 

Items affecting comparability (1)

   

     

(0.39)

     

0.06

     

(0.38)

 

Diluted EPS, as adjusted (1)

 

$

4.25

   

$

3.46

   

$

13.60

   

$

12.01

 
   

(1)

Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information.

 

  • Revenues decreased $13.4 million, or 1.0%, in the fourth quarter of 2021 as compared to the fourth quarter of 2020, primarily due to the inclusion of the 53rd week in the fourth quarter of 2020. The 53rd week contributed an estimated $88.4 million to revenues in the fourth quarter of 2020. Advertising incentives of $6.5 million related to the Domino’s Surprise FreesTM promotion and the negative impact of changes in foreign currency exchange rates of approximately $2.5 million also contributed to the decrease in revenues. These decreases in revenues were partially offset by global same store sales growth and an increase in global store counts during the trailing four quarters, which resulted in higher supply chain and global royalty revenues.
  • Net Income increased $3.8 million, or 2.5%, in the fourth quarter of 2021 as compared to the fourth quarter of 2020. This increase was primarily driven by a $34.3 million pre-tax unrealized gain on the Company’s investment in DPC Dash Ltd (“DPC Dash”), the Company’s master franchisee that owns and operates Domino’s Pizza stores in China, resulting from the observable change in price from the valuation of the Company’s additional $9.1 million investment in DPC Dash made in the fourth quarter of 2021. This increase was partially offset by an estimated $15.2 million of net income attributable to the 53rd week in 2020.
  • Diluted EPS was $4.25 for the fourth quarter of 2021 versus $3.85 in the fourth quarter of 2020. This represents a $0.40, or 10.4%, increase over the prior year quarter. Diluted EPS was $4.25 for the fourth quarter of 2021 versus diluted EPS, as adjusted, of $3.46 in the fourth quarter of 2020. This represents a $0.79, or 22.8%, increase over the prior year quarter. The increase in diluted EPS was driven by higher net income, including the unrealized gain on the Company’s investment in DPC Dash, which contributed an incremental $0.68 to the Company’s diluted EPS in the fourth quarter of 2021 as compared to the prior year quarter. A lower weighted average diluted share count resulting from the Company’s share repurchases during the trailing four quarters also contributed to the increase in diluted EPS in the fourth quarter of 2021. Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information.

The tables below outline certain statistical measures utilized by the Company to analyze its performance (unaudited). Refer to Comments on Regulation G below for additional details.

   

Fourth
Quarter of
2021

 

Fourth
Quarter of
2020

 

Fiscal
2021

 

Fiscal
2020

Same store sales growth: (versus prior year period)

               

U.S. Company-owned stores

 

(7.3)%

 

+ 8.1%

 

(3.6)%

 

+ 11.0%

U.S. franchise stores

 

+ 1.5%

 

+ 11.4%

 

+ 3.9%

 

+ 11.5%

U.S. stores

 

+ 1.0%

 

+ 11.2%

 

+ 3.5%

 

+ 11.5%

International stores (excluding foreign currency impact)

 

+ 1.8%

 

+ 7.3%

 

+ 8.0%

 

+ 4.4%

                 

Global retail sales growth: (versus prior year period)

               

U.S. stores

 

(2.6)%

 

+ 22.8%

 

+ 4.3%

 

+17.6%

International stores

 

+ 2.2%

 

+ 20.7%

 

+ 16.9%

 

+ 7.5%

Total

 

(0.2)%

 

+ 21.7%

 

+ 10.4%

 

+ 12.5%

                 

Global retail sales growth: (versus prior year period,

   excluding foreign currency impact)

               

U.S. stores

 

(2.6)%

 

+ 22.8%

 

+ 4.3%

 

+ 17.6%

International stores

 

+ 4.5%

 

+ 19.0%

 

+ 13.9%

 

+ 8.8%

Total

 

+ 1.0%

 

+ 20.9%

 

+ 8.9%

 

+13.2%

                 

Global retail sales growth: (versus prior year period,

   excluding foreign currency impact and 53rd week impact)

               

U.S. stores

 

+ 4.6%

 

+ 14.3%

 

+ 6.7%

 

+15.0%

International stores

 

+ 13.2%

 

+ 9.9%

 

+ 17.1%

 

+ 5.9%

Total

 

+ 9.0%

 

+ 12.0%

 

+ 11.7%

 

+10.4%

 
   

U.S. Company
owned Stores

 

U.S. Franchise
Stores

 

Total
U.S. Stores

 

International
Stores

 

Total

Store counts:

                   

Store count at September 12, 2021

 

367

 

6,104

 

6,471

 

11,909

 

18,380

Openings

 

8

 

84

 

92

 

430

 

522

Closings

 

 

(3)

 

(3)

 

(51)

 

(54)

Store count at January 2, 2022

 

375

 

6,185

 

6,560

 

12,288

 

18,848

Fourth quarter 2021 net store growth

 

8

 

81

 

89

 

379

 

468

Fiscal 2021 net store growth

 

12

 

193

 

205

 

999

 

1,204

Two- to Three-Year Outlook

The Company does not provide quarterly or annual earnings guidance or estimates. The following two- to three-year outlook does not constitute specific earnings guidance. In January 2022, the Company reaffirmed its two- to three-year outlook as follows:

   

Two- to Three- Year
Outlook

Global retail sales growth, excluding foreign currency impact

 

6% − 10%

Global net unit growth

 

6% − 8%

Financial Results Comparability

Financial results for the Company can be significantly affected by changes in its capital structure, its effective tax rate, adoption of new accounting pronouncements, store portfolio changes, calendar timing and other factors. The Company’s recapitalization transactions have historically resulted in higher net interest expense due primarily to higher net debt levels, as well as the amortization of debt issuance costs associated with the repayment of certain of the Company’s notes. Additionally, repurchases and retirements of shares of the Company’s common stock pursuant to its share repurchase programs have historically reduced its weighted average diluted shares outstanding.

In addition to the above factors impacting comparability, the tables below present certain other items that affect comparability between the Company’s 2021 and 2020 financial results (unaudited). Management believes that including such information is critical to an understanding of the Company’s financial results for the fourth quarter of 2021 and fiscal year 2021 as compared to the same periods in 2020. Refer to the Comments on Regulation G section below for additional details.

   

Fiscal Quarter Ended January 2, 2022

   

Fiscal Year Ended January 2, 2022

 

(in thousands, except per share data)

 

Pre-tax

   

After-tax

   

Diluted EPS
Impact

   

Pre-tax

   

After-tax

   

Diluted EPS
Impact

 

2021 items affecting comparability:

                                   

Recapitalization expenses:

                                   

General and administrative expenses (1)

 

$

   

$

   

$

   

$

(509)

   

$

(397)

   

$

(0.01)

 

Interest expense (2)

   

     

     

     

(309)

     

(241)

     

(0.01)

 

Debt issuance cost write-off (3)

   

     

     

     

(2,024)

     

(1,581)

     

(0.04)

 

Total of 2021 items

 

$

   

$

   

$

   

$

(2,842)

   

$

(2,219)

   

$

(0.06)

 
 
   

Fiscal Quarter Ended January 3, 2021

   

Fiscal Year Ended January 3, 2021

 

(in thousands, except per share data)

 

Pre-tax

   

After-tax

   

Diluted EPS
Impact

   

Pre-tax

   

After-tax

   

Diluted EPS
Impact

 

2020 items affecting comparability:

                                   

Estimated 53rd week impact (4)

 

$

19,161

   

$

15,201

   

$

0.39

   

$

19,161

   

$

15,201

   

$

0.38

 

Total of 2020 items

 

$

19,161

   

$

15,201

   

$

0.39

   

$

19,161

   

$

15,201

   

$

0.38

 
   

(1)

Represents legal, professional and administrative fees incurred in connection with the Company’s 2021 Recapitalization.

(2)

Represents interest expense the Company incurred on its 2017 five-year fixed rate notes and 2017 five-year floating rate notes subsequent to the closing of the Company’s 2021 Recapitalization, but prior to the repayment of the 2017 five-year fixed rate notes and 2017 five-year floating rate notes, resulting in the payment of interest on both the 2017 five-year fixed rate notes and 2017 five-year floating rate notes and the 2021 fixed-rate notes for a short period of time.

(3)

Represents the write-off of debt issuance costs related to the extinguishment of the 2017 five-year fixed rate notes and 2017 five-year floating rate notes in connection with the Company’s 2021 Recapitalization.

(4)

Represents the estimated impact of the 53rd week in the fourth quarter and fiscal year 2020.

Share Repurchases

During the fourth quarter of 2021, the Company repurchased and retired 443,085 shares of its common stock under its Board of Directors-approved share repurchase program for a total of $216.2 million. During fiscal 2021, the Company repurchased and retired 2,912,558 shares of its common stock under its Board of Directors-approved share repurchase program (including 2,250,786 shares of its common stock under its previously announced accelerated share repurchase transaction completed in the third quarter of 2021) for a total of $1.32 billion. As of January 2, 2022, the Company had a total remaining authorized amount for share repurchases of $704.1 million. Subsequent to the end of the fourth quarter of 2021, the Company repurchased and retired an additional 100,810 shares of common stock for a total of $47.7 million.

Conference Call Information

The Company will file its Annual Report on Form 10-K this morning. As previously announced, Domino’s Pizza, Inc. will hold a conference call today at 10 a.m. (Eastern) to review its fourth quarter and fiscal 2021 financial results. The call can be accessed by dialing (866) 470-5929 (U.S./Canada) or (409) 217-8311 (International). Ask for the Domino’s Pizza conference call, ID 3957907. The call will also be webcast, and will be archived for one year, on ir.dominos.com.

Liquidity

As of January 2, 2022, the Company had approximately:

  • $148.2 million of unrestricted cash and cash equivalents;
  • $5.07 billion in total debt; and
  • $155.8 million of available borrowing capacity under its 2021 variable funding notes, net of letters of credit issued of $44.2 million.

Net cash provided by operating activities was $654.2 million during fiscal 2021. The Company invested $94.2 million in capital expenditures during fiscal 2021. Free cash flow, as reconciled below to net cash provided by operating activities, as determined under accounting principles generally accepted in the United States of America (“GAAP”), was approximately $560.0 million during fiscal 2021 (refer to Comments on Regulation G below for additional details).

(in thousands)

 

Fiscal year ended
January 2, 2022

 

Net cash provided by operating activities

 

$

654,206

 

Capital expenditures

   

(94,172)

 

Free cash flow

 

$

560,034

 

Comments on Regulation G

In addition to the GAAP financial measures set forth in this press release, the Company has included non-GAAP financial measures within the meaning of Regulation G, including free cash flow metrics and measures related to items affecting comparability between fiscal quarters and other fiscal periods such as diluted EPS, as adjusted. The Company has also included metrics such as global retail sales, global retail sales growth, global retail sales growth, excluding foreign currency impact, global retail sales growth, excluding foreign currency impact and 53rd week impact and same store sales growth, which are commonly used statistical measures in the quick-service restaurant industry that are important to understanding Company performance.

The Company uses “Global retail sales” to refer to total worldwide retail sales at Company-owned and franchise stores. The Company believes global retail sales information is useful in analyzing revenues because franchisees pay royalties and advertising fees that are based on a percentage of franchise retail sales. The Company reviews comparable industry global retail sales information to assess business trends and to track the growth of the Domino’s Pizza brand. In addition, supply chain revenues are directly impacted by changes in franchise retail sales. Retail sales for franchise stores are reported to the Company by its franchisees and are not included in Company revenues. “Global retail sales growth” is calculated as the change of U.S. Dollar global retail sales against the comparable period of the prior year. “Global retail sales growth, excluding foreign currency impact” is calculated as the change of international local currency global retail sales against the comparable period of the prior year. “Global retail sales growth, excluding foreign currency impact and 53rd week impact” is calculated as the change of international local currency global retail sales against the comparable period of the prior year and excluding the global retail sales attributable to the Company’s 53rd week in 2020.

The Company uses “Same store sales growth,” which is calculated by including only sales from stores that also had sales in the comparable weeks of both years. International same store sales growth is calculated similarly to U.S. same store sales growth. Changes in international same store sales are reported excluding foreign currency impacts, which reflect changes in international local currency sales. The 53rd week in fiscal 2020 had no impact on reported same store sales growth amounts.

The Company uses “Diluted EPS, as adjusted,” which is calculated as reported diluted EPS, adjusted for the items that affect comparability to the prior year periods. The most directly comparable financial measure calculated and presented in accordance with GAAP is diluted EPS. The Company believes that the diluted EPS, as adjusted, measure is important and useful to investors and other interested persons and that such persons benefit from having a consistent basis for comparison between reporting periods. The Company uses diluted EPS, as adjusted, internally to evaluate operating performance, to evaluate itself against its peers and in long-range planning. Additionally, the Company believes that analysts covering the Company’s stock performance generally eliminate these items affecting comparability when preparing their financial models, when determining their published EPS estimates and when benchmarking the Company against its competitors.

The Company uses “Free cash flow,” which is calculated as net cash provided by operating activities, less capital expenditures, both as reported under GAAP. The Company believes that the free cash flow measure is important to investors and other interested persons, and that such persons benefit from having a measure which communicates how much cash flow is available for working capital needs or to be used for repurchasing debt, making acquisitions, repurchasing common stock or paying dividends.

About Domino’s Pizza®

Founded in 1960, Domino’s Pizza is the largest pizza company in the world, with a significant business in both delivery and carryout pizza. It ranks among the world’s top public restaurant brands with a global enterprise of more than 18,800 stores in over 90 markets. Domino’s had global retail sales of nearly $17.8 billion in 2021, with over $8.6 billion in the U.S. and over $9.1 billion internationally. In the fourth quarter of 2021, Domino’s had global retail sales of over $5.5 billion, with over $2.6 billion in the U.S. and nearly $2.9 billion internationally. Its system is comprised of independent franchise owners who accounted for 98% of Domino’s stores as of the end of the fourth quarter of 2021. Emphasis on technology innovation helped Domino’s achieve more than half of all global retail sales in 2021 from digital channels. In the U.S., Domino’s generated more than 75% of U.S. retail sales in 2021 via digital channels and has developed several innovative ordering platforms, including those for Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter and more. In 2019, Domino’s announced a partnership with Nuro to further its exploration and testing of autonomous pizza delivery. In mid-2020, Domino’s launched a new way to order contactless carryout nationwide – via Domino’s Carside Delivery®, which customers can choose when placing a prepaid online order.

Order – dominos.com
Company Info – biz.dominos.com
Media Assets – media.dominos.com 

Please visit our Investor Relations website at ir.dominos.com to view news, announcements, earnings releases, investor presentations and conference webcasts.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

This press release contains various forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”) that are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. The following cautionary statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the “safe harbor” provisions of the Act. You can identify forward-looking statements by the use of words such as “anticipates,” “believes,” “could,” “should,” “estimates,” “expects,” “intends,” “may,” “will,” “plans,” “predicts,” “projects,” “seeks,” “approximately,” “potential,” “outlook” and similar terms and phrases that concern our strategy, plans or intentions, including references to assumptions. These forward-looking statements address various matters including information concerning future results of operations and business strategy, our anticipated profitability, estimates in same store sales growth, the growth of our U.S. and international business, our 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. While we believe these expectations and projections are based on reasonable assumptions, such forward-looking statements are inherently subject to risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from our expectations are more fully described in our filings with the Securities and Exchange Commission, including under the section headed “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 2, 2022. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors, including but not limited to: our substantial increased indebtedness as a result of our recapitalization transactions and our ability to incur additional indebtedness or refinance or renegotiate key terms of that indebtedness in the future; the impact a downgrade in our credit rating may have on our business, financial condition and results of operations; our future financial performance and our ability to pay principal and interest on our indebtedness; our ability to manage difficulties associated with or related to the ongoing COVID-19 pandemic and the effects of COVID-19 and related regulations and policies on our business and supply chain, including impacts on the availability of labor; labor shortages or changes in operating expenses resulting from changes in prices of food (particularly cheese), fuel and other commodity costs, labor, utilities, insurance, employee benefits and other operating costs; the effectiveness of our advertising, operations and promotional initiatives; shortages, interruptions or disruptions in the supply or delivery of fresh food products and store equipment; the strength of our brand, including our ability to compete in the U.S. and internationally in our intensely competitive industry, including the food service and food delivery markets; the impact of social media and other consumer-oriented technologies on our business, brand and reputation; the impact of new or improved technologies and alternative methods of delivery on consumer behavior; new product, digital ordering and concept developments by us, and other food-industry competitors; our ability to maintain good relationships with and attract new franchisees, and franchisees’ ability to successfully manage their operations without negatively impacting our royalty payments and fees or our brand’s reputation; our ability to successfully implement cost-saving strategies; our ability and that of our franchisees to successfully operate in the current and future credit environment; changes in the level of consumer spending given general economic conditions, including interest rates, energy prices and consumer confidence; our ability and that of our franchisees to open new restaurants and keep existing restaurants in operation; the impact that widespread illness, health epidemics or general health concerns, severe weather conditions and natural disasters may have on our business and the economies of the countries where we operate; changes in foreign currency exchange rates; changes in income tax rates; our ability to retain or replace our executive officers and other key members of management and our ability to adequately staff our stores and supply chain centers with qualified personnel; our ability to find and/or retain suitable real estate for our stores and supply chain centers; changes in government legislation and regulations, including changes in laws and regulations regarding information privacy, payment methods and consumer protection and social media; adverse legal judgments or settlements; food-borne illness or contamination of products or food tampering; data breaches, power loss, technological failures, user error or other cyber risks threatening us or our franchisees; the impact that environmental, social and governance matters may have on our business and reputation; the effect of war, terrorism, catastrophic events or climate change; our ability to pay dividends and repurchase shares; changes in consumer tastes, spending and traffic patterns and demographic trends; actions by activist investors; changes in accounting policies; and adequacy of our insurance coverage. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. All forward-looking statements speak only as of the date of this press release and should be evaluated with an understanding of their inherent uncertainty. Except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission, or other applicable law, we will not undertake, and specifically disclaim, any obligation to publicly update or revise any forward-looking statements to reflect events or circumstances arising after the date of this press release, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by, or on behalf of, us. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

TABLES TO FOLLOW

 

Domino’s Pizza, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)

 
   

Fiscal Quarter Ended

 
   

January 2,
2022

   

% of
Total
Revenues

   

January 3,
2021

   

% of
Total
Revenues

 

(In thousands, except per share data)

                       

Revenues:

                       

U.S. Company-owned stores

 

$

141,227

         

$

155,749

       

U.S. franchise royalties and fees

   

166,937

           

167,298

       

Supply chain

   

800,858

           

791,149

       

International franchise royalties and fees

   

90,968

           

89,555

       

U.S. franchise advertising

   

143,223

           

152,816

       

Total revenues

   

1,343,213

     

100.0

%

   

1,356,567

     

100.0

%

Cost of sales:

                       

U.S. Company-owned stores

   

113,411

           

121,591

       

Supply chain

   

723,601

           

699,712

       

Total cost of sales

   

837,012

     

62.3

%

   

821,303

     

60.5

%

Operating margin

   

506,201

     

37.7

%

   

535,264

     

39.5

%

General and administrative

   

140,290

     

10.4

%

   

138,404

     

10.2

%

U.S. franchise advertising

   

143,223

     

10.7

%

   

152,816

     

11.3

%

Income from operations

   

222,688

     

16.6

%

   

244,044

     

18.0

%

Other income

   

34,258

     

2.5

%

   

     

0.0

%

Interest expense, net

   

(60,777)

     

(4.5)

%

   

(54,479)

     

(4.0)

%

Income before provision for income taxes

   

196,169

     

14.6

%

   

189,565

     

14.0

%

Provision for income taxes

   

40,484

     

3.0

%

   

37,668

     

2.8

%

Net income

 

$

155,685

     

11.6

%

 

$

151,897

     

11.2

%

Earnings per share:

                       

Common stock – diluted

 

$

4.25

         

$

3.85

       

 

Domino’s Pizza, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)

 
   

Fiscal Year Ended

 
   

January 2,
2022

   

% of
Total
Revenues

   

January 3,
2021

   

% of
Total
Revenues

 

(In thousands, except per share data)

                       

Revenues:

                       

U.S. Company-owned stores

 

$

478,976

         

$

485,569

       

U.S. franchise royalties and fees

   

539,883

           

503,196

       

Supply chain

   

2,560,977

           

2,416,651

       

International franchise royalties and fees

   

298,036

           

249,757

       

U.S. franchise advertising

   

479,501

           

462,238

       

Total revenues

   

4,357,373

     

100.0

%

   

4,117,411

     

100.0

%

Cost of sales:

                       

U.S. Company-owned stores

   

374,104

           

379,598

       

Supply chain

   

2,295,027

           

2,143,320

       

Total cost of sales

   

2,669,131

     

61.3

%

   

2,522,918

     

61.3

%

Operating margin

   

1,688,242

     

38.7

%

   

1,594,493

     

38.7

%

General and administrative

   

428,333

     

9.8

%

   

406,613

     

9.9

%

U.S. franchise advertising

   

479,501

     

11.0

%

   

462,238

     

11.2

%

Income from operations

   

780,408

     

17.9

%

   

725,642

     

17.6

%

Other income

   

36,758

     

0.8

%

   

     

0.0

%

Interest expense, net

   

(191,461)

     

(4.3)

%

   

(170,512)

     

(4.1)

%

Income before provision for income taxes

   

625,705

     

14.4

%

   

555,130

     

13.5

%

Provision for income taxes

   

115,238

     

2.7

%

   

63,834

     

1.6

%

Net income

 

$

510,467

     

11.7

%

 

$

491,296

     

11.9

%

Earnings per share:

                       

Common stock – diluted

 

$

13.54

         

$

12.39

       

 

Domino’s Pizza, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 
   

January 2,
2022

   

January 3,
2021

 

(In thousands)

           

Assets

           

Current assets:

           

Cash and cash equivalents

 

$

148,160

   

$

168,821

 

Restricted cash and cash equivalents

   

180,579

     

217,453

 

Accounts receivable, net

   

255,327

     

244,560

 

Inventories

   

68,328

     

66,683

 

Prepaid expenses and other

   

27,242

     

24,169

 

Advertising fund assets, restricted

   

180,904

     

147,698

 

Total current assets

   

860,540

     

869,384

 

Property, plant and equipment, net

   

324,065

     

297,364

 

Operating lease right-of-use assets

   

210,702

     

228,268

 

Investments

   

125,840

     

40,000

 

Other assets

   

150,669

     

132,152

 

Total assets

 

$

1,671,816

   

$

1,567,168

 

Liabilities and stockholders’ deficit

           

Current liabilities:

           

Current portion of long-term debt

 

$

55,588

   

$

2,855

 

Accounts payable

   

91,547

     

94,499

 

Operating lease liabilities

   

37,155

     

35,861

 

Advertising fund liabilities

   

173,737

     

141,175

 

Other accrued liabilities

   

232,714

     

196,429

 

Total current liabilities

   

590,741

     

470,819

 

Long-term liabilities:

           

Long-term debt, less current portion

   

5,014,638

     

4,116,018

 

Operating lease liabilities

   

184,471

     

202,268

 

Other accrued liabilities

   

91,502

     

78,468

 

Total long-term liabilities

   

5,290,611

     

4,396,754

 

Total stockholders’ deficit

   

(4,209,536)

     

(3,300,405)

 

Total liabilities and stockholders’ deficit

 

$

1,671,816

   

$

1,567,168

 

 

Domino’s Pizza, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 
   

Fiscal Year Ended

 
   

January 2,
2022

   

January 3,
2021

 

(In thousands)

           

Cash flows from operating activities:

           

Net income

 

$

510,467

   

$

491,296

 

Adjustments to reconcile net income to net cash provided by operating activities:

           

Depreciation and amortization

   

72,923

     

65,038

 

Loss on sale/disposal of assets

   

1,189

     

2,922

 

Amortization of debt issuance costs

   

7,509

     

5,526

 

Provision for deferred income taxes

   

1,988

     

14,424

 

Non-cash compensation expense

   

28,670

     

24,244

 

Excess tax benefits from equity-based compensation

   

(18,911)

     

(60,364)

 

Provision for losses on accounts and notes receivable

   

659

     

2,134

 

Unrealized gain on investments

   

(36,758)

     

 

Changes in operating assets and liabilities

   

41,245

     

18,797

 

Changes in advertising fund assets and liabilities, restricted

   

45,225

     

28,777

 

Net cash provided by operating activities

   

654,206

     

592,794

 

Cash flows from investing activities:

           

Capital expenditures

   

(94,172)

     

(88,768)

 

Purchase of investments

   

(49,082)

     

(40,000)

 

Other

   

531

     

(159)

 

Net cash used in investing activities

   

(142,723)

     

(128,927)

 

Cash flows from financing activities:

           

Proceeds from issuance of long-term debt

   

1,850,000

     

158,000

 

Repayments of long-term debt and finance lease obligations

   

(910,212)

     

(202,058)

 

Proceeds from exercise of stock options

   

19,682

     

30,970

 

Purchases of common stock

   

(1,320,902)

     

(304,590)

 

Tax payments for restricted stock upon vesting

   

(6,820)

     

(6,803)

 

Payments of common stock dividends and equivalents

   

(139,399)

     

(121,925)

 

Cash paid for financing costs

   

(14,938)

     

 

Other

   

(244)

     

 

Net cash used in financing activities

   

(522,833)

     

(446,406)

 

Effect of exchange rate changes on cash

   

(316)

     

761

 

Change in cash and cash equivalents, restricted cash and cash equivalents

   

(11,666)

     

18,222

 
             

Cash and cash equivalents, beginning of period

   

168,821

     

190,615

 

Restricted cash and cash equivalents, beginning of period

   

217,453

     

209,269

 

Cash and cash equivalents included in advertising fund assets, restricted,

   beginning of period

   

115,872

     

84,040

 

Cash and cash equivalents, restricted cash and cash equivalents and

   cash and cash equivalents included in advertising fund assets, restricted,

   beginning of period

   

502,146

     

483,924

 
             

Cash and cash equivalents, end of period

   

148,160

     

168,821

 

Restricted cash and cash equivalents, end of period

   

180,579

     

217,453

 

Cash and cash equivalents included in advertising fund assets, restricted,

   end of period

   

161,741

     

115,872

 

Cash and cash equivalents, restricted cash and cash equivalents and cash and

   cash equivalents included in advertising fund assets, restricted,

   end of period

 

$

490,480

   

$

502,146

 

 

 

 

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SOURCE Domino’s Pizza, Inc.

Jenny Fouracre, Investor Relations, (734) 930-3620

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