Pizza delivery chain Domino’s Pizza has announced results for the second quarter of 2014, comprising growth in both same store sales and global store counts, which resulted in 17.5 percent EPS growth. Domestic same store sales grew 5.4 percent during the quarter versus the year-ago period, continuing the positive sales momentum in the company’s domestic business. Net Income was up 15.6 percent for the second quarter as against last year, driven by domestic and international same store sales growth and global store count growth.
Revenues were up 8.8 percent for the second quarter as compared to last year, primarily due to higher supply chain revenues from higher cheese and other commodity prices as well as increased volumes, higher international revenues resulting in part from same store sales and store count growth, and increased domestic franchise revenues due primarily to same store sales growth. The international division also posted strong results with same store sales growth of 7.7 percent during the quarter, marking the 82nd consecutive quarter of international same store sales growth. The company had global net store growth of 133 stores in the second quarter of 2014.
During the quarter, the company also repurchased and retired 687,750 shares of its common stock for approximately $49.9 million. Commenting on the results, J. Patrick Doyle, President and Chief Executive Officer, Domino’s, said: “The first half of 2014 has proven to be yet another positive story for our global brand and hardworking franchisees. We are performing well in the U.S. and international markets by driving sales and building stores around the world. We also opened our 11,000th store this quarter, an important milestone for a growing brand.”
Founded in 1960, Domino’s Pizza is one of the leading players in pizza delivery, with a significant business in carryout pizza. It has more than 11,000 stores in over 70 international markets. Domino’s had global retail sales of over $8.0 billion in 2013, comprising nearly $3.8 billion in the US and over $4.2 billion internationally. In the second quarter of 2014, Domino’s had global retail sales of over $2.0 billion, comprising $0.9 billion in the US and $1.1 billion internationally. Franchise owners accounted for nearly 97 percent of the Domino’s Pizza stores as of the second quarter of 2014. The emphasis on technology helped Domino’s generate approximately 40 percent of US sales from its digital channels in 2013, as well as reach an estimated $3 billion annually in global digital sales. Domino’s recently launched its ordering app for iPad, adding to an existing ordering app lineup that covers nearly 95 percent of the smartphone market. In June 2014, Domino’s debuted voice ordering for its iPhone and Android apps, a first in technology within both traditional and e-commerce retail.