Global retail sales growth (excluding foreign currency impact) of 4.9% for the fourth quarter; 5.4% growth for fiscal 2023
U.S. same store sales growth of 2.8% for the fourth quarter; 1.6% growth for fiscal 2023
International same store sales growth (excluding foreign currency impact) of 0.1% for the fourth quarter; 1.7% growth for fiscal 2023
Global net store growth of 394 for the fourth quarter; 711 for fiscal 2023 (excluding closure of the Russia market, global net stores grew by 870 for fiscal 2023)
Income from operations up 3.4% for the fourth quarter; up 6.7% for fiscal 2023 (excluding $21.2 million pre-tax refranchising gain recorded in fourth quarter of 2022, income from operations up 13.0% for the fourth quarter; up 9.7% for fiscal 2023)
Board of Directors approves 25% increase in quarterly dividend to $1.51 per share; approves additional $1.0 billion share repurchase program
ANN ARBOR, Mich., Feb. 26, 2024 /PRNewswire/ — Domino’s Pizza, Inc. (NYSE:DPZ), the largest pizza company in the world, announced results for the fourth quarter and fiscal 2023.
“Our strong fourth quarter demonstrates that our Hungry for MORE strategy is already delivering results. This strategy, which we recently unveiled at our Investor Day, is our plan to deliver MORE sales, MORE stores and MORE profits,” said Russell Weiner, Domino’s Chief Executive Officer. “Domino’s foundation has never been stronger. Our positive U.S. transactions and same store sales growth in both our delivery and carryout channels in the fourth quarter underscore the strength and momentum in our business. These results give us confidence in our brand and the Company’s ability to win and create meaningful value for our shareholders.”
Fourth Quarter and Fiscal 2023 Operational and Financial Highlights (Unaudited):
The tables below outline certain statistical measures utilized by the Company to analyze its performance, as well as key financial results. This historical data is not necessarily indicative of results to be expected for any future period. Refer to Comments on Regulation G below for additional details, including definitions of these statistical measures and certain reconciliations.
Fourth Quarter
Fiscal Year
2023
2022
2023
2022
Global retail sales: (in millions of U.S. dollars)
U.S. stores
$
2,831.2
$
2,709.7
$
9,026.1
$
8,751.7
International stores
2,897.4
2,746.4
9,249.7
8,788.2
Total
$
5,728.6
$
5,456.1
$
18,275.8
$
17,539.9
Fourth Quarter
Fiscal Year
2023
2022
2023
2022
Global retail sales growth: (versus prior year period,
excluding foreign currency impact)
U.S. stores
+ 4.5 %
+ 2.7 %
+ 3.1 %
+ 1.3 %
International stores (1)
+ 5.2 %
+ 7.5 %
+ 7.7 %
+ 6.3 %
Total (2)
+ 4.9 %
+ 5.2 %
+ 5.4 %
+ 3.9 %
Same store sales growth: (versus prior year period)
U.S. Company-owned stores
+ 5.9 %
+ 3.4 %
+ 5.4 %
(2.6) %
U.S. franchise stores
+ 2.6 %
+ 0.8 %
+ 1.4 %
(0.7) %
U.S. stores
+ 2.8 %
+ 0.9 %
+ 1.6 %
(0.8) %
International stores (excluding foreign currency impact)
+ 0.1 %
+ 2.6 %
+ 1.7 %
+ 0.1 %
(1)
2023 fourth quarter and fiscal year figures exclude the impact of the Russia market. Including the impact of the Russia market, international stores retail sales growth, excluding foreign currency impact, was 4.4% and 7.3% for the fourth quarter and fiscal 2023, respectively.
(2)
2023 fourth quarter and fiscal year figures exclude the impact of the Russia market. Including the impact of the Russia market, total global retail sales growth, excluding foreign currency impact, was 4.5% and 5.2% for the fourth quarter and fiscal 2023, respectively.
U.S. Company-
owned Stores
U.S. Franchise
Stores
Total
U.S. Stores
International
Stores
Total
Fourth quarter of 2023 store counts:
Store count at September 10, 2023
288
6,474
6,762
13,435
20,197
Openings
—
95
95
336
431
Closings
—
(3)
(3)
(34)
(37)
Store count at December 31, 2023
288
6,566
6,854
13,737
20,591
Fourth quarter 2023 net store growth
—
92
92
302
394
U.S. Company-
owned Stores
U.S. Franchise
Stores
Total
U.S. Stores
International
Stores
Total
Fiscal 2023 store counts:
Store count at January 1, 2023
286
6,400
6,686
13,194
19,880
Openings
4
174
178
892
1,070
Closings
(1)
(9)
(10)
(349)
(359)
Transfers
(1)
1
—
—
—
Store count at December 31, 2023
288
6,566
6,854
13,737
20,591
Fiscal 2023 net store growth
3
165
168
543
711
Fiscal 2023 net store growth, excluding Russia (1)
3
165
168
702
870
(1)
As previously announced, the remaining 143 net stores in Russia were reflected as closed in the third quarter of 2023. Including those remaining closures, 159 net stores in Russia were closed in fiscal 2023. Refer to Comments on Regulation G and Russia Market discussion below for additional details.
Fourth Quarter
Fiscal Year
(In millions, except percentages, percentage points, per share
data and leverage ratio)
2023
2022
Increase/
(Decrease)
2023
2022
Increase/
(Decrease)
Total revenues
$1,403.0
$1,392.2
+ 0.8 %
$4,479.4
$4,537.2
(1.3) %
U.S. Company-owned store gross margin
14.7 %
16.3 %
(1.6) pp
16.4 %
15.2 %
+ 1.2 pp
Supply chain gross margin
10.9 %
8.2 %
+ 2.7 pp
10.2 %
8.9 %
+ 1.3 pp
Income from operations(1)
$257.2
$248.8
+ 3.4 %
$819.5
$767.9
+ 6.7 %
Net income
$157.3
$158.3
(0.6) %
$519.1
$452.3
+ 14.8 %
Diluted earnings per share
$4.48
$4.43
+ 1.1 %
$14.66
$12.53
+ 17.0 %
Leverage ratio
5.2x
5.8x
(0.6)x
Net cash provided by operating activities
$590.9
$475.3
+ 24.3 %
Capital expenditures
(105.4)
(87.2)
+ 20.9 %
Free cash flow
$485.5
$388.1
+ 25.1 %
(1)
Income from operations in the fourth quarter and fiscal 2022 included a $21.2 million pre-tax gain associated with the refranchising of 114 U.S. Company-owned stores in Arizona and Utah (the “2022 Store Sale”).
Revenues increased $10.7 million, or 0.8%, in the fourth quarter of 2023 as compared to the fourth quarter of 2022, primarily due to higher global franchise royalties and fees, resulting from global retail sales growth (excluding foreign currency impact) and higher supply chain revenues, partially offset by a decrease in U.S. franchise advertising revenues. U.S. franchise royalties and fees also benefited from an increase in fees paid by U.S. franchisees for the use of the Company’s technology platforms. The increase in supply chain revenues was attributable to higher order volumes, partially offset by a shift in the relative mix of the products we sell and a decline in the Company’s market basket pricing to stores. The Company’s market basket pricing to stores decreased 2.0% during the fourth quarter of 2023 as compared to the fourth quarter of 2022. The decrease in U.S. franchise advertising revenues was primarily driven by an increase in advertising incentives related to certain brand promotions in the fourth quarter of 2023 as compared to the fourth quarter of 2022.
U.S. Company-owned store gross margin decreased 1.6 percentage points in the fourth quarter of 2023 as compared to the fourth quarter of 2022, primarily due to higher labor costs as a result of higher wage rates, higher insurance costs and the increase in the loyalty liability resulting from the relaunch of the Domino’s Rewards program. These pressures were partially offset by higher same store sales …