Domino's earnings climb on new pizza launch
March 2, 2010
by Eric Schroeder
ANN ARBOR, MICH. — The introduction of reformulated pizza recipes late in 2009 helped boost fourth-quarter and full-year results at Domino’s Pizza Inc. Net income in the year ended Jan. 3, 2010, totaled $79,744,000, equal to $1.38 per share on the common stock, up 48% from $53,971,000, or 93c per share, in fiscal 2008. The new recipes helped boost fourth-quarter profit 114% to $23,619,000, or 41c per share, from $11,026,000, or 19c per share, in the same period a year ago.
Net sales fell 2% to $1,404,057,000 in the full year, but jumped 8% in the fourth quarter to $462,882,000.
Domino’s said domestic sales at stores open at least a year grew 1.4% during the fourth quarter on higher traffic, while international sales — which comprises nearly half of global retail sales — rose 3.9% in the quarter.
“The bold steps we have been taking to re-ignite our domestic system helped us gain significant traction last year,” said David A. Brandon, chairman and chief executive officer. “We succeeded in our primary goal of growing traffic all four quarters of 2009. Traffic growth was the most significant in the fourth quarter; and this positive momentum has continued thus far in 2010, as sales and traffic have increased significantly since the launch of our new core pizza.”
Looking ahead, Domino’s said it expects domestic sales at stores open at least a year will rise 1% to 3% in fiscal 2010, with international sales at stores open at least a year up 3% to 5%.