The world's largest pizza company based upon global retail sales, Domino's Pizza Inc. (DPZ:NYSE), today announced financial results for its second quarter ended June 20. 2021.
Domino's Pizza reported that in Q2/21, global retail sales increased by 21.6% year-over-year, or 17.1% excluding foreign currency adjustments. During the same period the company advised that same store sales in the U.S. grew by 3.5%, compared to Q2/20 which confirms positive continued sales momentum in the U.S. The firm noted that same store sales across its international business also posted very strong y-o-y growth of 13.9% during the quarter.
Domino's mentioned that in Q2/21 it increased the number of its stores to 238, of which 35 were in the U.S. and 203 were in international markets.
Domino's Pizza's CEO Ritch Allison commented, "I am very pleased with our strong global retail sales and store growth momentum during the second quarter, which demonstrated the power of our investments in innovation, our focus on food quality and superior service, and our dynamic franchisees who are dedicated to serving their local neighborhoods."
"Given our current operating environment, we are watching our two-year sales trends anchored to pre-Covid fiscal 2019 results. I am pleased that in the second quarter our cumulative two-year same stores sales were up 19.6% domestically and 15.2% internationally, signifying meaningful and sustained growth," CEO Allison added.
The company reported that revenues in Q2/21 increased by 12.2% to $1.032 billion, versus $920 million in Q2/20.
The firm added that net income decreased by 1.7% to $116.6 million, compared to $118.7 million in Q2/20 largely due to higher provision for income taxes.
For Q2/21, The company posted diluted earnings per share (EPS) of $3.06 and adjusted diluted EPS of $3.12, representing 2.3% and 4.3% increases, respectively versus Q2/20.
The company described at length its recapitalization efforts. Domino's stated that it borrowed $1.85 billion and used part of the proceeds to repay debt initially acquired in 2017. The firm said it also entered into a $1.0 billion share repurchase program that was completed following the close of Q2/21. As a result, Domino's noted that altogether with repurchases made in Q2/21, it has received and retired a total of 2,250,786 shares of its common stock for an average price of $444.29 per share.
Domino's stated that its Board of Directors declared a $0.94 per common share quarterly dividend to shareholders of record as of September 15, 2021, payable on September 30, 2021.
Domino's Pizza is headquartered in Ann Arbor, Mich., and is the world's largest pizza company when ranked by total retail sales. The firm offers both delivery and carryout pizza options and noted that it has more than 18,000 stores in more than 90 countries worldwide. For FY/20, the firm's $16.1 billion in annual revenues were split roughly equally, with around $8.3 billion generated in the U.S. and approximately $7.8 billion coming from international operations. The company indicated that independent franchise owners make up about 98% of its stores. The company has invested heavily in technology and thus has been able to generate greater than 70% of its sales in 2020 via digital channels in the U.S. and about 50% in international markets.
Domino's Pizza began the day with a market cap of around $18.3 billion with approximately 38.83 million shares outstanding and a short interest of about 4.9%. DPZ shares opened 3% higher today at $484.99 (+$14.62, +3.11%) over yesterday's $470.37 closing price and then proceeded to climb to a new 52-week high this morning of $539.80. The stock has traded today between $484.00 and $539.80 per share and is closed the day at $538.82 (+$68.45, +14.55%).
[NLINSERT]Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
