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Stock in Concentration Domino’s Pizza, Inc.’s (NYSE: DPZ)

On Friday, Domino’s Pizza, Inc.’s (DPZ) stock concluded the recent trade at $291.31 with downbeat trend move of -0.05 percent. The Company has total market value of 12.156B. The company has got a 52-week exceptional price of $293.69 and reached a 52-week lowest of the share price at $288.50. After opening the first trading session at $289.77, it registered a day’s high of $293.69 and touched a day’s low of $288.50.

Domino’s Pizza, Inc. (DPZ), the largest pizza company in the world based on global retail sales, reported results for the second quarter of fiscal 2018, comprised of strong growth in same store sales, global store counts and earnings per share. Domestic same store sales grew 6.9 percent during the quarter versus the year-before period, continuing the positive sales momentum in the Company’s domestic business. The international division also posted positive results, with same store sales growth of 4.0 percent during the quarter. The second quarter marked the 98th consecutive quarter of positive international same store sales growth and the 29th consecutive quarter of positive domestic same store sales growth. The Company also had second quarter global net store growth of 156 stores, comprised of 113 net new international stores and 43 net new domestic stores.

Diluted EPS was $1.78 for the second quarter, which was up 34.8 percent over the Company’s diluted EPS in the previous year quarter. Diluted EPS was negatively influenced by expenses related to the Company’s recapitalization, as further discussed below. Diluted EPS, as adjusted, was $1.84 for the second quarter, which was up 39.4 percent over the Company’s diluted EPS in the previous year quarter.

During the second quarter of 2018, the Company repurchased 905,556 shares of its ordinary stock pursuant to its Board of Directors-accepted open market share repurchase program for about $219.0M. The Company’s Board of Directors also reported a $0.55 per share quarterly dividend for shareholders of record as of June 15, 2018, that was paid on June 29, 2018. Additionally, on July 18, 2018, the Board of Directors reported a $0.55 per share quarterly dividend for shareholders of record as of September 14, 2018, to be paid on September 28, 2018.

Revenues raised $150.8M, or 24.0 percent, in the second quarter of 2018. The Company adopted Accounting Standards Codification 606, Revenue from Contracts with Consumers (“ASC 606”) in the first quarter of 2018. This resulted in the recognition of $80.9M in domestic franchise advertising revenues during the second quarter of 2018 related to contributions from domestic franchisees to Domino’s National Advertising Fund Inc. (“DNAF”), the Company’s consolidated not-for-profit advertising fund. In 2017, under accounting standards in effect at that time, the Company had presented these contributions net with the related disbursements in its consolidated statement of income. Refer to the “Adoption of New Accounting Guidance” section on page three for additional information related to the adoption of this accounting standard. The remaining raise in revenues was due primarily to higher supply chain volumes resulting from order and store count growth. Higher international franchise, domestic Company-owned store and domestic franchise revenues resulting from higher retail sales also contributed to the raise. Consolidated revenues also benefited from the positive impact of changes in foreign currency exchange rates.

Net Income raised $11.7M, or 17.7 percent, in the second quarter of 2018. This raise was driven by higher global royalty revenues and higher supply chain volumes, partially offset by an raise in general and administrative expenses and higher net interest expense. A lower tax rate resulting from regulations under the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) also positively influenced net income in the second quarter and two fiscal quarters of 2018 through a reduction in the provision for income taxes, but was partially offset by lower excess tax benefits from equity-based compensation as contrast to the previous year.

Diluted EPS was $1.78 for the second quarter versus $1.32 in the previous year quarter. This represents a $0.46 or 34.8 percent raise over the previous year quarter. Diluted EPS, as adjusted, was $1.84 for the second quarter versus $1.32 in the previous year quarter, which represents a $0.52 or 39.4 percent raise over the previous year quarter. These raises were driven by higher net income, as well as lower diluted share count, primarily as a result of the share repurchases made during the trailing four quarters. (See the Financial Results Comparability section on page four and the Comments on Regulation G section on page five.)

The company jumped 4.23 percent in past week and climbed 4.40 percent in one month. During the past three month period the stock surged 16.57 percent and increased 41.35 percent in past six month. During the twelve month it added 51.31 percent and year to date performance of 54.16 percent.

 

Gary Williams

Written by Gary Williams

Gary Williams:- Technology

I am Gary Williams and I’m passionate about business and finance news with over 9 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind newsstoriesworld.com with a vision to broaden the company’s readership throughout 2015. I am an editor and reporter of “Technology” category.

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