Domino’s Pizza, Inc. Edges Out Earnings Estimates

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Domino’s Pizza, Inc. (NYSE:DPZ) released its third quarter earnings report before opening bell this morning. The pizza chain posted diluted earnings of 63 cents on $446.57 million in revenue. Analysts had been expecting earnings per share of 61 cents on $434.1 million in revenue. In the same quarter a year ago, diluted earnings were 51 cents per share.

Breaking down Domino’s Pizza’s earnings report

The company reported a 7.7% increase in domestic same store sales. Internationally, Domino’s Pizza recorded 7.1% growth in same store sales. Globally, net store growth was 160 stores during the third quarter.

Diluted earnings per share rose 18.9% year over year, while revenues climbed 10.5%. The company cited higher supply chain revenues from higher volumes and higher commodity prices, especially cheese. Domino’s also said it sold more equipment and supplies to stores. Net income rose 16.3% year over year.

“Great people, food, service and technology have helped us deliver another strong quarter of global sales and profits,” said Domino’s President and CEO Patrick Doyle in a statement this morning. “Our franchisees continued to drive vigorous store growth worldwide and have embraced our ‘Pizza Theater’ store reimage program in neighborhoods around the world.”

Updated cash position

As of Sept. 7, Domino’s had $30.9 million in unrestricted cash and cash equivalents. The company had $1.52 billion in total debt and $59.8 million in available credit under its $100 million variable funding notes, net the $40.2 million in credit that was issued.

Free cash flow was about $87.9 million in the first three fiscal quarters of this year.

Domino’s Pizza buys back shares

During the September quarter, the pizza chain bought back and retired 242,700 common shares for about $17.4 million. That’s an average price of $71.69 per share. As of Oct. 7, Domino’s had $132.7 million left on its share repurchase authorization program.

On Oct. 8, the company’s board of directors declared a quarterly dividend of 25 cents. That will be paid to shareholders of record as of Dec. 15 and paid on Dec. 30.

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