Domino’s, Inc, the world leader in pizza delivery, has announced record results for the fourth quarter and fiscal 2001, which ended 30 December 2001.
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In addition to achieving record earnings, Domino’s same store sales growth exceeded those of all reporting national pizza competitors.
The company listed its annual highlights for 2001 compared to 2000:
*Net income increased 45.9% to US$36.8m.
*EBITDA increased 10.1% to a record $162.2m.
*Domestic same store sales increased 4%, comprised of a 7.3% increase in Company-owned same store sales and a 3.6% increase in domestic franchise same store sales.
*International same store sales increased 6.4%, on a constant dollar basis.
*System-wide sales increased 6.8% to a record US$3.785bn.
Chairman and CEO David A. Brandon said: “We are extremely proud of achieving another year of record earnings in this highly competitive industry. Our ability to lead all reporting national competitors in same store sales growth for the first time in many years was a great accomplishment.
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By GlobalData“Our results confirm we’re on the right track, both in terms of our brand message, and how we have improved the consistency and quality of our store operations. We challenged our entire system to improve, and our results in 2001 demonstrate the progress we are making. Our expectations continue to be high and we’re looking forward to building on the momentum we generated throughout 2001.”
Fourth Quarter Highlights
The following are highlights for the Q4 of 2001 compared to the same period in 2000:
*Net income increased 21.9% to US$12.2m.
*EBITDA increased 14.8% to a record US$52.8m.
*Domestic same store sales increased 5.8%, comprised of an 8% increase in company-owned same store sales and a 5.5% increase in domestic franchise same store sales.
*International same store sales increased 5.1%, on a constant dollar basis, marking the 32nd consecutive quarter of international same store sales growth.
*System-wide sales increased 7.4% to a record US$1.197bn.
Financial Summaries
Fourth Quarter Ended Fiscal Year Ended
December 30, December 31, % December 30, December 31, %
2001 2000 Change 2001 2000 Change
(Dollars in millions)
System-wide
sales $1,196.5 $1,114.0 7.4% $3,784.6 $3,543.5 6.8%
Total revenues 397.4 364.4 9.1 1,258.3 1,166.1 7.9
EBITDA 52.8 46.0 14.8 162.2 147.3 10.1
Income from
operations 39.8 34.8 14.4 127.1 112.4 13.1
Net income 12.2 10.0 21.9 36.8 25.2 45.9
The increases in the Q4 and year-to-date system-wide sales in 2001 are due primarily to increases in both domestic and international same store sales and worldwide store counts.
The increases in Q4 and year-to-date total revenues in 2001 are due primarily to increases in distribution volumes and increased revenues from domestic and international franchise royalties. These increases in revenues were offset in part by decreases in revenues from our company-owned stores. These decreases in revenues from our company-owned stores resulted from the strategic sales of certain company-owned stores to franchisees and were offset in part by increases in same store sales.
The increases in Q4 and year-to-date EBITDA in 2001 are due primarily to strong system-wide sales growth as a result of increases in domestic and international same store sales. Additionally, the company added 95 stores worldwide during 2001. During 2001, domestic same store sales increased 4%, comprised of a 7.3% increase in company-owned same store sales and a 3.6% increase in domestic franchise same store sales.
The increase in domestic same store sales during 2001 was due in part to improvements in our overall marketing programs. We also benefited from increases in distribution volumes as a result of increased domestic sales activity. These EBITDA gains were offset in part by continued margin pressures at our company-owned stores, primarily as a result of increased food costs, including higher cheese costs, labor and energy costs.
Net income was positively impacted by increases in EBITDA and reductions in our interest costs due to lower debt levels and more favorable variable interest rates, while negatively impacted by increases in provision for income taxes due to increases in pre-tax income.
