Domino’s (DPZ) Slice of the Pie Becomes Bigger Following Q4 Results
Shares of Domino's Pizza, Inc. (NYSE: DPZ) are currently trading up nearly 12 percent following the release of the company's fourth-quarter results. After closing Monday's session at $33.54, Domino's shares are now trading around $37.70.
Revenue was up 4.5 percent versus the prior-year period and totaled $501.75 million, topping the Street’s consensus of $512.7 million. Global retail sales rose 8.8 percent as Domestic same-store sales were up 6.8 percent and international sales were up 4.7 percent.
The total cost of sales, $356.89 million, only made up 71.1 percent of total revenue, down from the 71.6 percent in total last year. Operating margin increased 50 basis points to 28.9 percent.
Net income grew 27.9 percent year over year to $30.9 million while diluted earnings per share came to $0.52, versus $0.39 in the prior-year quarter. This is substantially better than the $0.49 per share Street consensus.
Cash and cash equivalents totaled $50.29 million at the end of the quarter, up from $47.95 million at the same time last year.
During the fourth quarter of 2011, Domino's repurchased and retired 1,146,263 shares of its common stock under its open market share repurchase program for approximately $35.8 million, or an average price of $31.25 per share.
J. Patrick Doyle, Domino's President and Chief Executive Officer, said: "Our positive results this year provide yet more evidence that we have successfully reset the bar for Domino's Pizza. The global momentum that we are driving through our innovation, commitment to food quality and outstanding service continues to energize our franchise owners and team members and inspire their terrific performance."
The company boosted its long-term net unit outlook from 250-300 to 350-450 units. Domino's reaffirmed its long-term domestic same store sales outlook of 1-3 percent, but raised the top end of its international range by 1 percent to 3-6 percent.
Revenue was up 4.5 percent versus the prior-year period and totaled $501.75 million, topping the Street’s consensus of $512.7 million. Global retail sales rose 8.8 percent as Domestic same-store sales were up 6.8 percent and international sales were up 4.7 percent.
The total cost of sales, $356.89 million, only made up 71.1 percent of total revenue, down from the 71.6 percent in total last year. Operating margin increased 50 basis points to 28.9 percent.
Net income grew 27.9 percent year over year to $30.9 million while diluted earnings per share came to $0.52, versus $0.39 in the prior-year quarter. This is substantially better than the $0.49 per share Street consensus.
Cash and cash equivalents totaled $50.29 million at the end of the quarter, up from $47.95 million at the same time last year.
During the fourth quarter of 2011, Domino's repurchased and retired 1,146,263 shares of its common stock under its open market share repurchase program for approximately $35.8 million, or an average price of $31.25 per share.
J. Patrick Doyle, Domino's President and Chief Executive Officer, said: "Our positive results this year provide yet more evidence that we have successfully reset the bar for Domino's Pizza. The global momentum that we are driving through our innovation, commitment to food quality and outstanding service continues to energize our franchise owners and team members and inspire their terrific performance."
The company boosted its long-term net unit outlook from 250-300 to 350-450 units. Domino's reaffirmed its long-term domestic same store sales outlook of 1-3 percent, but raised the top end of its international range by 1 percent to 3-6 percent.