☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 38-2511577 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
30 Frank Lloyd Wright Drive Ann Arbor, Michigan | 48105 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
Domino’s Pizza, Inc. Common Stock, $0.01 par value | DPZ | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||
Emerging growth company | ☐ |
Page No. | |||||||
PART I. | |||||||
Item 1. | 3 | ||||||
3 | |||||||
4 | |||||||
5 | |||||||
6 | |||||||
7 | |||||||
Item 2. | 16 | ||||||
Item 3. | 24 | ||||||
Item 4. | 24 | ||||||
PART II. | |||||||
Item 1. | 25 | ||||||
Item 1A. | 25 | ||||||
Item 2. | 25 | ||||||
Item 3. | 25 | ||||||
Item 4. | 25 | ||||||
Item 5. | 25 | ||||||
Item 6. | 26 | ||||||
27 |
(In thousands) | June 16, 2019 | December 30, 2018 (1) | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 108,259 | $ | 25,438 | ||||
Restricted cash and cash equivalents | 152,713 | 166,993 | ||||||
Accounts receivable, net | 182,904 | 190,091 | ||||||
Inventories | 44,281 | 45,975 | ||||||
Prepaid expenses and other | 37,578 | 25,710 | ||||||
Advertising fund assets, restricted | 117,712 | 112,744 | ||||||
Total current assets | 643,447 | 566,951 | ||||||
Property, plant and equipment: | ||||||||
Land and buildings | 41,385 | 41,147 | ||||||
Leasehold and other improvements | 155,532 | 170,498 | ||||||
Equipment | 237,088 | 243,654 | ||||||
Construction in progress | 29,314 | 31,822 | ||||||
463,319 | 487,121 | |||||||
Accumulated depreciation and amortization | (249,184 | ) | (252,182 | ) | ||||
Property, plant and equipment, net | 214,135 | 234,939 | ||||||
Other assets: | ||||||||
Operating lease right-of-use assets | 211,204 | — | ||||||
Goodwill | 13,542 | 14,919 | ||||||
Capitalized software, net | 69,629 | 63,809 | ||||||
Other assets | 21,965 | 21,241 | ||||||
Deferred income taxes | 3,245 | 5,526 | ||||||
Total other assets | 319,585 | 105,495 | ||||||
Total assets | $ | 1,177,167 | $ | 907,385 | ||||
Liabilities and stockholders’ deficit | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 35,919 | $ | 35,893 | ||||
Accounts payable | 82,456 | 92,546 | ||||||
Operating lease liabilities | 30,156 | — | ||||||
Insurance reserves | 22,078 | 22,210 | ||||||
Dividends payable | 27,355 | 581 | ||||||
Advertising fund liabilities | 113,416 | 107,150 | ||||||
Other accrued liabilities | 101,526 | 121,363 | ||||||
Total current liabilities | 412,906 | 379,743 | ||||||
Long-term liabilities: | ||||||||
Long-term debt, less current portion | 3,414,988 | 3,495,691 | ||||||
Operating lease liabilities | 188,305 | — | ||||||
Insurance reserves | 33,507 | 31,065 | ||||||
Other accrued liabilities | 31,747 | 40,807 | ||||||
Total long-term liabilities | 3,668,547 | 3,567,563 | ||||||
Stockholders’ deficit: | ||||||||
Common stock | 412 | 410 | ||||||
Additional paid-in capital | 10,788 | 569 | ||||||
Retained deficit | (2,911,278 | ) | (3,036,471 | ) | ||||
Accumulated other comprehensive loss | (4,208 | ) | (4,429 | ) | ||||
Total stockholders’ deficit | (2,904,286 | ) | (3,039,921 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 1,177,167 | $ | 907,385 | ||||
(In thousands) | September 8, 2019 | December 30, 2018 (1) | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 66,706 | $ | 25,438 | ||||
Restricted cash and cash equivalents | 177,292 | 166,993 | ||||||
Accounts receivable, net | 185,403 | 190,091 | ||||||
Inventories | 51,010 | 45,975 | ||||||
Prepaid expenses and other | 15,438 | 25,710 | ||||||
Advertising fund assets, restricted | 109,490 | 112,744 | ||||||
Total current assets | 605,339 | 566,951 | ||||||
Property, plant and equipment: | ||||||||
Land and buildings | 41,408 | 41,147 | ||||||
Leasehold and other improvements | 160,850 | 170,498 | ||||||
Equipment | 241,972 | 243,654 | ||||||
Construction in progress | 26,649 | 31,822 | ||||||
470,879 | 487,121 | |||||||
Accumulated depreciation and amortization | (254,669 | ) | (252,182 | ) | ||||
Property, plant and equipment, net | 216,210 | 234,939 | ||||||
Other assets: | ||||||||
Operating lease right-of-use assets | 227,495 | — | ||||||
Goodwill | 13,542 | 14,919 | ||||||
Capitalized software, net | 71,055 | 63,809 | ||||||
Other assets | 22,743 | 21,241 | ||||||
Deferred income taxes | 3,888 | 5,526 | ||||||
Total other assets | 338,723 | 105,495 | ||||||
Total assets | $ | 1,160,272 | $ | 907,385 | ||||
Liabilities and stockholders’ deficit | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 35,935 | $ | 35,893 | ||||
Accounts payable | 95,657 | 92,546 | ||||||
Operating lease liabilities | 32,203 | — | ||||||
Insurance reserves | 22,337 | 22,210 | ||||||
Dividends payable | 27,006 | 581 | ||||||
Advertising fund liabilities | 104,945 | 107,150 | ||||||
Other accrued liabilities | 103,162 | 121,363 | ||||||
Total current liabilities | 421,245 | 379,743 | ||||||
Long-term liabilities: | ||||||||
Long-term debt, less current portion | 3,407,101 | 3,495,691 | ||||||
Operating lease liabilities | 202,128 | — | ||||||
Insurance reserves | 32,858 | 31,065 | ||||||
Other accrued liabilities | 32,589 | 40,807 | ||||||
Total long-term liabilities | 3,674,676 | 3,567,563 | ||||||
Stockholders’ deficit: | ||||||||
Common stock | 409 | 410 | ||||||
Additional paid-in capital | 75 | 569 | ||||||
Retained deficit | (2,932,195 | ) | (3,036,471 | ) | ||||
Accumulated other comprehensive loss | (3,938 | ) | (4,429 | ) | ||||
Total stockholders’ deficit | (2,935,649 | ) | (3,039,921 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 1,160,272 | $ | 907,385 | ||||
(1) | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 16, | June 17, | June 16, | June 17, | |||||||||||||
(In thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | ||||||||||||||||
U.S. Company-owned stores | $ | 105,001 | $ | 118,795 | $ | 228,451 | $ | 239,981 | ||||||||
U.S. franchise royalties and fees | 95,594 | 87,418 | 192,302 | 176,908 | ||||||||||||
Supply chain | 467,577 | 440,917 | 939,677 | 880,980 | ||||||||||||
International franchise royalties and fees | 54,975 | 51,337 | 109,559 | 103,758 | ||||||||||||
U.S. franchise advertising | 88,500 | 80,929 | 177,621 | 163,140 | ||||||||||||
Total revenues | 811,647 | 779,396 | 1,647,610 | 1,564,767 | ||||||||||||
Cost of sales: | ||||||||||||||||
U.S. Company-owned stores | 80,366 | 91,976 | 175,906 | 185,014 | ||||||||||||
Supply chain | 414,610 | 393,840 | 832,744 | 786,308 | ||||||||||||
Total cost of sales | 494,976 | 485,816 | 1,008,650 | 971,322 | ||||||||||||
Operating margin | 316,671 | 293,580 | 638,960 | 593,445 | ||||||||||||
General and administrative | 89,248 | 86,506 | 178,912 | 170,684 | ||||||||||||
U.S. franchise advertising | 88,500 | 80,929 | 177,621 | 163,140 | ||||||||||||
Income from operations | 138,923 | 126,145 | 282,427 | 259,621 | ||||||||||||
Interest income | 922 | 1,179 | 1,615 | 1,659 | ||||||||||||
Interest expense | (33,866 | ) | (36,127 | ) | (68,920 | ) | (66,413 | ) | ||||||||
Income before provision for income taxes | 105,979 | 91,197 | 215,122 | 194,867 | ||||||||||||
Provision for income taxes | 13,620 | 13,789 | 30,113 | 28,632 | ||||||||||||
Net income | $ | 92,359 | $ | 77,408 | $ | 185,009 | $ | 166,235 | ||||||||
Earnings per share: | ||||||||||||||||
Common stock - basic | $ | 2.25 | $ | 1.84 | $ | 4.52 | $ | 3.92 | ||||||||
Common stock - diluted | 2.19 | 1.78 | 4.38 | 3.78 |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
September 8, | September 9, | September 8, | September 9, | |||||||||||||
(In thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | ||||||||||||||||
U.S. Company-owned stores | $ | 94,575 | $ | 118,540 | $ | 323,026 | $ | 358,521 | ||||||||
U.S. franchise royalties and fees | 97,047 | 89,427 | 289,349 | 266,335 | ||||||||||||
Supply chain | 485,110 | 445,096 | 1,424,787 | 1,326,076 | ||||||||||||
International franchise royalties and fees | 54,586 | 50,424 | 164,145 | 154,182 | ||||||||||||
U.S. franchise advertising | 89,494 | 82,478 | 267,115 | 245,618 | ||||||||||||
Total revenues | 820,812 | 785,965 | 2,468,422 | 2,350,732 | ||||||||||||
Cost of sales: | ||||||||||||||||
U.S. Company-owned stores | 71,610 | 92,998 | 247,516 | 278,012 | ||||||||||||
Supply chain | 432,951 | 397,688 | 1,265,695 | 1,183,996 | ||||||||||||
Total cost of sales | 504,561 | 490,686 | 1,513,211 | 1,462,008 | ||||||||||||
Operating margin | 316,251 | 295,279 | 955,211 | 888,724 | ||||||||||||
General and administrative | 83,728 | 80,369 | 262,640 | 251,053 | ||||||||||||
U.S. franchise advertising | 89,494 | 82,478 | 267,115 | 245,618 | ||||||||||||
Income from operations | 143,029 | 132,432 | 425,456 | 392,053 | ||||||||||||
Interest income | 968 | 792 | 2,583 | 2,451 | ||||||||||||
Interest expense | (33,752 | ) | (33,976 | ) | (102,672 | ) | (100,389 | ) | ||||||||
Income before provision for income taxes | 110,245 | 99,248 | 325,367 | 294,115 | ||||||||||||
Provision for income taxes | 23,872 | 15,153 | 53,985 | 43,785 | ||||||||||||
Net income | $ | 86,373 | $ | 84,095 | $ | 271,382 | $ | 250,330 | ||||||||
Earnings per share: | ||||||||||||||||
Common stock - basic | $ | 2.11 | $ | 2.02 | $ | 6.63 | $ | 5.94 | ||||||||
Common stock - diluted | 2.05 | 1.95 | 6.44 | 5.73 |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 16, | June 17, | June 16, | June 17, | |||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 92,359 | $ | 77,408 | $ | 185,009 | $ | 166,235 | ||||||||
Currency translation adjustment | (16 | ) | (603 | ) | 221 | (1,058 | ) | |||||||||
Comprehensive income | $ | 92,343 | $ | 76,805 | $ | 185,230 | $ | 165,177 | ||||||||
Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
September 8, | September 9, | September 8, | September 9, | |||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 86,373 | $ | 84,095 | $ | 271,382 | $ | 250,330 | ||||||||
Currency translation adjustment | 270 | (84 | ) | 491 | (1,142 | ) | ||||||||||
Comprehensive income | $ | 86,643 | $ | 84,011 | $ | 271,873 | $ | 249,188 | ||||||||
Two Fiscal Quarters Ended | ||||||||
June 16, | June 17, | |||||||
(In thousands) | 2019 | 2018 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 185,009 | $ | 166,235 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 27,850 | 23,310 | ||||||
Loss on sale/disposal of assets | 2,829 | 519 | ||||||
Amortization of debt issuance costs | 2,198 | 5,469 | ||||||
Provision for deferred income taxes | 2,276 | 1,484 | ||||||
Non-cash compensation expense | 8,589 | 11,443 | ||||||
Excess tax benefits from equity-based compensation | (18,446 | ) | (15,318 | ) | ||||
Other | 550 | 111 | ||||||
Changes in operating assets and liabilities | (10,713 | ) | (50,165 | ) | ||||
Changes in advertising fund assets and liabilities, restricted | 1,411 | 11,624 | ||||||
Net cash provided by operating activities | 201,553 | 154,712 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (25,708 | ) | (37,290 | ) | ||||
Proceeds from sale of assets | 8,161 | 323 | ||||||
Maturities of advertising fund investments, restricted | 15,152 | 29,007 | ||||||
Purchases of advertising fund investments, restricted | — | (35,152 | ) | |||||
Other | (132 | ) | (672 | ) | ||||
Net cash used in investing activities | (2,527 | ) | (43,784 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | — | 905,000 | ||||||
Repayments of long-term debt and finance lease obligations | (82,886 | ) | (586,133 | ) | ||||
Proceeds from exercise of stock options | 9,290 | 5,206 | ||||||
Purchases of common stock | (11,453 | ) | (320,067 | ) | ||||
Tax payments for restricted stock upon vesting | (2,567 | ) | (2,318 | ) | ||||
Payments of common stock dividends and equivalents | (26,680 | ) | (23,538 | ) | ||||
Cash paid for financing costs | — | (8,207 | ) | |||||
Net cash used in financing activities | (114,296 | ) | (30,057 | ) | ||||
Effect of exchange rate changes on cash | 111 | (132 | ) | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | 84,841 | 80,739 | ||||||
Cash and cash equivalents, beginning of period | 25,438 | 35,768 | ||||||
Restricted cash and cash equivalents, beginning of period | 166,993 | 191,762 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 44,988 | 27,316 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 237,419 | 254,846 | ||||||
Cash and cash equivalents, end of period | 108,259 | 157,788 | ||||||
Restricted cash and cash equivalents, end of period | 152,713 | 144,970 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 61,288 | 32,827 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ | 322,260 | $ | 335,585 | ||||
Three Fiscal Quarters Ended | ||||||||
September 8, | September 9, | |||||||
(In thousands) | 2019 | 2018 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 271,382 | $ | 250,330 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 40,982 | 35,770 | ||||||
Loss (gain) on sale/disposal of assets | 3,141 | (5,187 | ) | |||||
Amortization of debt issuance costs | 3,288 | 6,581 | ||||||
Provision for deferred income taxes | 1,627 | 1,737 | ||||||
Non-cash compensation expense | 13,269 | 15,660 | ||||||
Excess tax benefits from equity-based compensation | (19,670 | ) | (22,722 | ) | ||||
Other | 774 | 356 | ||||||
Changes in operating assets and liabilities | 16,214 | (25,580 | ) | |||||
Changes in advertising fund assets and liabilities, restricted | (6,411 | ) | 5,574 | |||||
Net cash provided by operating activities | 324,596 | 262,519 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (42,676 | ) | (65,074 | ) | ||||
Proceeds from sale of assets | 9,738 | 8,213 | ||||||
Maturities of advertising fund investments, restricted | 30,152 | 44,007 | ||||||
Purchases of advertising fund investments, restricted | — | (50,152 | ) | |||||
Other | (351 | ) | (2,357 | ) | ||||
Net cash used in investing activities | (3,137 | ) | (65,363 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | — | 905,000 | ||||||
Repayments of long-term debt and finance lease obligations | (91,860 | ) | (595,067 | ) | ||||
Proceeds from exercise of stock options | 10,122 | 8,967 | ||||||
Purchases of common stock | (105,149 | ) | (429,190 | ) | ||||
Tax payments for restricted stock upon vesting | (5,820 | ) | (6,849 | ) | ||||
Payments of common stock dividends and equivalents | (53,598 | ) | (46,720 | ) | ||||
Cash paid for financing costs | — | (8,207 | ) | |||||
Net cash used in financing activities | (246,305 | ) | (172,066 | ) | ||||
Effect of exchange rate changes on cash | 139 | (235 | ) | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | 75,293 | 24,855 | ||||||
Cash and cash equivalents, beginning of period | 25,438 | 35,768 | ||||||
Restricted cash and cash equivalents, beginning of period | 166,993 | 191,762 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 44,988 | 27,316 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 237,419 | 254,846 | ||||||
Cash and cash equivalents, end of period | 66,706 | 84,600 | ||||||
Restricted cash and cash equivalents, end of period | 177,292 | 168,170 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 68,714 | 26,931 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ | 312,712 | $ | 279,701 | ||||
Fiscal Quarters Ended June 16, 2019 and June 17, 2018 | ||||||||||||||||||||||||
U.S. | Supply | International | Intersegment | |||||||||||||||||||||
Stores | Chain | Franchise | Revenues | Other | Total | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
2019 | $ | 289,095 | $ | 495,989 | $ | 54,975 | $ | (28,412 | ) | $ | — | $ | 811,647 | |||||||||||
2018 | 287,142 | 474,471 | 51,337 | (33,554 | ) | — | 779,396 | |||||||||||||||||
Income from operations | ||||||||||||||||||||||||
2019 | $ | 77,050 | $ | 41,305 | $ | 41,432 | N/A | $ | (20,864 | ) | $ | 138,923 | ||||||||||||
2018 | 73,193 | 36,494 | 39,104 | N/A | (22,646 | ) | 126,145 | |||||||||||||||||
Segment Income | ||||||||||||||||||||||||
2019 | $ | 82,006 | $ | 45,382 | $ | 41,491 | N/A | $ | (9,235 | ) | $ | 159,644 | ||||||||||||
2018 | 76,087 | 39,454 | 39,150 | N/A | (10,241 | ) | 144,450 |
Two Fiscal Quarters Ended June 16, 2019 and June 17, 2018 | ||||||||||||||||||||||||
U.S. | Supply | International | Intersegment | |||||||||||||||||||||
Stores | Chain | Franchise | Revenues | Other | Total | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
2019 | $ | 598,374 | $ | 1,001,670 | $ | 109,559 | $ | (61,993 | ) | $ | — | $ | 1,647,610 | |||||||||||
2018 | 580,029 | 948,426 | 103,758 | (67,446 | ) | — | 1,564,767 | |||||||||||||||||
Income from operations | ||||||||||||||||||||||||
2019 | $ | 157,664 | $ | 83,327 | $ | 84,186 | N/A | $ | (42,750 | ) | $ | 282,427 | ||||||||||||
2018 | 148,481 | 73,866 | 80,628 | N/A | (43,354 | ) | 259,621 | |||||||||||||||||
Segment Income | ||||||||||||||||||||||||
2019 | $ | 165,604 | $ | 91,429 | $ | 84,290 | N/A | $ | (19,628 | ) | $ | 321,695 | ||||||||||||
2018 | 154,431 | 79,610 | 80,721 | N/A | (19,337 | ) | 295,425 |
Fiscal Quarters Ended September 8, 2019 and September 9, 2018 | ||||||||||||||||||||||||
U.S. | Supply | International | Intersegment | |||||||||||||||||||||
Stores | Chain | Franchise | Revenues | Other | Total | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
2019 | $ | 281,116 | $ | 511,709 | $ | 54,586 | $ | (26,599 | ) | $ | — | $ | 820,812 | |||||||||||
2018 | 290,445 | 478,517 | 50,424 | (33,421 | ) | — | 785,965 | |||||||||||||||||
Income from operations | ||||||||||||||||||||||||
2019 | $ | 80,188 | $ | 40,513 | $ | 42,281 | N/A | $ | (19,953 | ) | $ | 143,029 | ||||||||||||
2018 | 78,636 | 35,452 | 39,374 | N/A | (21,030 | ) | 132,432 | |||||||||||||||||
Segment Income | ||||||||||||||||||||||||
2019 | $ | 82,556 | $ | 44,432 | $ | 42,337 | N/A | $ | (8,172 | ) | $ | 161,153 | ||||||||||||
2018 | 75,721 | 38,561 | 39,416 | N/A | (10,295 | ) | 143,403 | |||||||||||||||||
Three Fiscal Quarters Ended September 8, 2019 and September 9, 2018 | ||||||||||||||||||||||||
U.S. | Supply | International | Intersegment | |||||||||||||||||||||
Stores | Chain | Franchise | Revenues | Other | Total | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
2019 | $ | 879,490 | $ | 1,513,380 | $ | 164,145 | $ | (88,593 | ) | $ | — | $ | 2,468,422 | |||||||||||
2018 | 870,474 | 1,426,943 | 154,182 | (100,867 | ) | — | 2,350,732 | |||||||||||||||||
Income from operations | ||||||||||||||||||||||||
2019 | $ | 237,852 | $ | 123,840 | $ | 126,467 | N/A | $ | (62,703 | ) | $ | 425,456 | ||||||||||||
2018 | 227,117 | 109,319 | 120,002 | N/A | (64,385 | ) | 392,053 | |||||||||||||||||
Segment Income | ||||||||||||||||||||||||
2019 | $ | 248,160 | $ | 135,861 | $ | 126,628 | N/A | $ | (27,801 | ) | $ | 482,848 | ||||||||||||
2018 | 230,152 | 118,171 | 120,138 | N/A | (29,633 | ) | 438,828 |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 16, | June 17, | June 16, | June 17, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Total Segment Income | $ | 159,644 | $ | 144,450 | $ | 321,695 | $ | 295,425 | ||||||||
Depreciation and amortization | (14,060 | ) | (12,240 | ) | (27,850 | ) | (23,310 | ) | ||||||||
Loss on sale/disposal of assets | (2,680 | ) | (154 | ) | (2,829 | ) | (519 | ) | ||||||||
Non-cash compensation expense | (3,981 | ) | (5,379 | ) | (8,589 | ) | (11,443 | ) | ||||||||
Recapitalization-related expenses | — | (532 | ) | — | (532 | ) | ||||||||||
Income from operations | 138,923 | 126,145 | 282,427 | 259,621 | ||||||||||||
Interest income | 922 | 1,179 | 1,615 | 1,659 | ||||||||||||
Interest expense | (33,866 | ) | (36,127 | ) | (68,920 | ) | (66,413 | ) | ||||||||
Income before provision for income taxes | $ | 105,979 | $ | 91,197 | $ | 215,122 | $ | 194,867 | ||||||||
Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
September 8, | September 9, | September 8, | September 9, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Total Segment Income | $ | 161,153 | $ | 143,403 | $ | 482,848 | $ | 438,828 | ||||||||
Depreciation and amortization | (13,132 | ) | (12,460 | ) | (40,982 | ) | (35,770 | ) | ||||||||
(Loss) gain on sale/disposal of assets | (312 | ) | 5,706 | (3,141 | ) | 5,187 | ||||||||||
Non-cash compensation expense | (4,680 | ) | (4,217 | ) | (13,269 | ) | (15,660 | ) | ||||||||
Recapitalization-related expenses | — | — | — | (532 | ) | |||||||||||
Income from operations | 143,029 | 132,432 | 425,456 | 392,053 | ||||||||||||
Interest income | 968 | 792 | 2,583 | 2,451 | ||||||||||||
Interest expense | (33,752 | ) | (33,976 | ) | (102,672 | ) | (100,389 | ) | ||||||||
Income before provision for income taxes | $ | 110,245 | $ | 99,248 | $ | 325,367 | $ | 294,115 | ||||||||
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 16, | June 17, | June 16, | June 17, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income available to common stockholders - basic and diluted | $ | 92,359 | $ | 77,408 | $ | 185,009 | $ | 166,235 | ||||||||
Basic weighted average number of shares | 41,023,269 | 42,044,035 | 40,944,400 | 42,433,073 | ||||||||||||
Earnings per share – basic | $ | 2.25 | $ | 1.84 | $ | 4.52 | $ | 3.92 | ||||||||
Diluted weighted average number of shares | 42,236,507 | 43,582,996 | 42,219,649 | 43,981,253 | ||||||||||||
Earnings per share – diluted | $ | 2.19 | $ | 1.78 | $ | 4.38 | $ | 3.78 |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
September 8, | September 9, | September 8, | September 9, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income available to common stockholders - basic and diluted | $ | 86,373 | $ | 84,095 | $ | 271,382 | $ | 250,330 | ||||||||
Basic weighted average number of shares | 40,954,279 | 41,585,933 | 40,947,693 | 42,150,693 | ||||||||||||
Earnings per share – basic | $ | 2.11 | $ | 2.02 | $ | 6.63 | $ | 5.94 | ||||||||
Diluted weighted average number of shares | 42,040,291 | 43,067,191 | 42,158,447 | 43,675,627 | ||||||||||||
Earnings per share – diluted | $ | 2.05 | $ | 1.95 | $ | 6.44 | $ | 5.73 |
Accumulated | Accumulated | ||||||||||||||||||||||||||||||||||||||||
Additional | Other | Additional | Other | ||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Common Stock | Paid-in | Retained | Comprehensive | ||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||||||||||||||||||
Balance at March 24, 2019 | 41,083,890 | $ | 411 | $ | 5,464 | $ | (2,976,848 | ) | $ | (4,192 | ) | ||||||||||||||||||||||||||||||
Balance at June 16, 2019 | 41,232,358 | $ | 412 | $ | 10,788 | $ | (2,911,278 | ) | $ | (4,208 | ) | ||||||||||||||||||||||||||||||
Net income | — | — | — | 92,359 | — | — | — | — | 86,373 | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock and equivalents ($ 0.65 per share) | — | — | — | (26,789 | ) | — | |||||||||||||||||||||||||||||||||||
Dividends declared on common stock and equivalents ($0.65 per share) | — | — | — | (26,569 | ) | — | |||||||||||||||||||||||||||||||||||
Issuance and cancellation of stock awards, net | (3,079 | ) | — | — | — | — | 45,479 | — | — | — | — | ||||||||||||||||||||||||||||||
Tax payments for restricted stock upon vesting | (377 | ) | — | (100 | ) | — | — | (12,603 | ) | — | (3,253 | ) | — | — | |||||||||||||||||||||||||||
Purchases of common stock | (12,295 | ) | (1 | ) | (3,308 | ) | — | — | (384,338 | ) | (3 | ) | (12,972 | ) | (80,721 | ) | — | ||||||||||||||||||||||||
Exercise of stock options | 164,219 | 2 | 4,751 | — | — | 18,100 | — | 832 | — | — | |||||||||||||||||||||||||||||||
Non-cash compensation expense | — | — | 3,981 | — | — | — | — | 4,680 | — | — | |||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | (16 | ) | — | — | — | — | 270 | ||||||||||||||||||||||||||||||
Balance at June 16, 2019 | 41,232,358 | $ | 412 | $ | 10,788 | $ | (2,911,278 | ) | $ | (4,208 | ) | ||||||||||||||||||||||||||||||
Balance at September 8, 2019 | 40,898,996 | $ | 409 | $ | 75 | $ | (2,932,195 | ) | $ | (3,938 | ) | ||||||||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||||||||||||||||||
Additional | Other | Additional | Other | ||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Common Stock | Paid-in | Retained | Comprehensive | ||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||||||||||||||||||
Balance at December 30, 2018 | 40,977,561 | $ | 410 | $ | 569 | $ | (3,036,471 | ) | $ | (4,429 | ) | 40,977,561 | $ | 410 | $ | 569 | $ | (3,036,471 | ) | $ | (4,429 | ) | |||||||||||||||||||
Net income | — | — | — | 185,009 | — | — | — | — | 271,382 | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock and equivalents ($ 1.30 per share) | — | — | — | (53,454 | ) | — | |||||||||||||||||||||||||||||||||||
Dividends declared on common stock and equivalents ($1.95 per share) | — | — | — | (80,023 | ) | — | |||||||||||||||||||||||||||||||||||
Issuance and cancellation of stock awards, net | 5,161 | — | — | — | 50,640 | — | — | — | — | ||||||||||||||||||||||||||||||||
Tax payments for restricted stock upon vesting | (9,441 | ) | — | (2,567 | ) | — | — | (22,044 | ) | — | (5,820 | ) | — | — | |||||||||||||||||||||||||||
Purchases of common stock | (45,844 | ) | (1 | ) | (5,090 | ) | (6,362 | ) | — | (430,182 | ) | (4 | ) | (18,062 | ) | (87,083 | ) | — | |||||||||||||||||||||||
Exercise of stock options | 304,921 | 3 | 9,287 | — | — | 323,021 | 3 | 10,119 | — | — | |||||||||||||||||||||||||||||||
Non-cash compensation expense | — | — | 8,589 | — | — | — | — | 13,269 | — | — | |||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | 221 | — | — | — | — | 491 | |||||||||||||||||||||||||||||||
Balance at June 16, 2019 | 41,232,358 | $ | 412 | $ | 10,788 | $ | (2,911,278 | ) | $ | (4,208 | ) | ||||||||||||||||||||||||||||||
Balance at September 8, 2019 | 40,898,996 | $ | 409 | $ | 75 | $ | (2,932,195 | ) | $ | (3,938 | ) | ||||||||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||||||||||||||||||
Additional | Other | Additional | Other | ||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Common Stock | Paid-in | Retained | Comprehensive | ||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||||||||||||||||||
Balance at March 25, 2018 | 42,625,881 | $ | 426 | $ | 137 | $ | (2,768,591 | ) | $ | (2,836 | ) | ||||||||||||||||||||||||||||||
Balance at June 17, 2018 | 41,837,693 | $ | 418 | $ | 737 | $ | (2,926,921 | ) | $ | (3,439 | ) | ||||||||||||||||||||||||||||||
Net income | — | — | — | 77,408 | — | — | — | — | 84,095 | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock and equivalents ($ 0.55 per share) | — | — | — | (23,012 | ) | — | |||||||||||||||||||||||||||||||||||
Dividends declared on common stock and equivalents ($0.55 per share) | — | — | — | (22,889 | ) | — | |||||||||||||||||||||||||||||||||||
Issuance and cancellation of stock awards, net | (1,340 | ) | — | — | — | — | 72,990 | 1 | — | — | — | ||||||||||||||||||||||||||||||
Tax payments for restricted stock upon vesting | (76 | ) | — | (19 | ) | — | — | (16,580 | ) | — | (4,531 | ) | — | — | |||||||||||||||||||||||||||
Purchases of common stock | (905,556 | ) | (9 | ) | (6,248 | ) | (212,726 | ) | — | (397,490 | ) | (4 | ) | (2,269 | ) | (106,850 | ) | — | |||||||||||||||||||||||
Exercise of stock options | 118,784 | 1 | 1,487 | — | — | 99,549 | 1 | 3,760 | — | — | |||||||||||||||||||||||||||||||
Non-cash compensation expense | — | — | 5,380 | — | — | — | — | 4,217 | — | — | |||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | (603 | ) | — | — | — | — | (84 | ) | |||||||||||||||||||||||||||||
Balance at June 17, 2018 | 41,837,693 | $ | 418 | $ | 737 | $ | (2,926,921 | ) | $ | (3,439 | ) | ||||||||||||||||||||||||||||||
Balance at September 9, 2018 | 41,596,162 | $ | 416 | $ | 1,914 | $ | (2,972,565 | ) | $ | (3,523 | ) | ||||||||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||||||||||||||||||
Additional | Other | Additional | Other | ||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Common Stock | Paid-in | Retained | Comprehensive | ||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 42,898,329 | $ | 429 | $ | 5,654 | $ | (2,739,437 | ) | $ | (2,030 | ) | 42,898,329 | $ | 429 | $ | 5,654 | $ | (2,739,437 | ) | $ | (2,030 | ) | |||||||||||||||||||
Net income | — | — | — | 166,235 | — | — | — | — | 250,330 | — | |||||||||||||||||||||||||||||||
Dividends declared on common stock and equivalents ($ 1.10 per share) | — | — | — | (46,561 | ) | — | |||||||||||||||||||||||||||||||||||
Dividends declared on common stock and equivalents ($1.65 per share) | — | — | — | (69,450 | ) | — | |||||||||||||||||||||||||||||||||||
Issuance and cancellation of stock awards, net | 7,866 | — | — | — | — | 80,932 | 1 | — | — | — | |||||||||||||||||||||||||||||||
Tax payments for restricted stock upon vesting | (10,237 | ) | — | (2,318 | ) | — | — | (26,893 | ) | — | (6,849 | ) | — | — | |||||||||||||||||||||||||||
Purchases of common stock | (1,353,564 | ) | (14 | ) | (19,245 | ) | (300,808 | ) | — | (1,751,054 | ) | (18 | ) | (21,514 | ) | (407,658 | ) | — | |||||||||||||||||||||||
Exercise of stock options | 295,299 | 3 | 5,203 | — | — | 394,848 | 4 | 8,963 | — | — | |||||||||||||||||||||||||||||||
Non-cash compensation expense | — | — | 11,443 | — | — | — | — | 15,660 | — | — | |||||||||||||||||||||||||||||||
Adoption of revenue recognition accounting standard | — | — | — | (6,701 | ) | — | — | — | — | (6,701 | ) | — | |||||||||||||||||||||||||||||
Currency translation adjustment | — | — �� | — | — | (1,058 | ) | — | — | — | — | (1,142 | ) | |||||||||||||||||||||||||||||
Reclassification adjustment for stranded taxes | — | — | — | 351 | (351 | ) | — | — | — | 351 | (351 | ) | |||||||||||||||||||||||||||||
Balance at June 17, 2018 | 41,837,693 | $ | 418 | $ | 737 | $ | (2,926,921 | ) | $ | (3,439 | ) | ||||||||||||||||||||||||||||||
Balance at September 9, 2018 | 41,596,162 | $ | 416 | $ | 1,914 | $ | (2,972,565 | ) | $ | (3,523 | ) | ||||||||||||||||||||||||||||||
At June 16, 2019 | ||||||||||||||||
Fair Value Estimated Using | ||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Inputs | Inputs | Inputs | |||||||||||||
Cash equivalents | $ | 93,178 | $ | 93,178 | $ | — | $ | — | ||||||||
Restricted cash equivalents | 91,476 | 91,476 | — | — | ||||||||||||
Investments in marketable securities | 10,068 | 10,068 | — | — | ||||||||||||
Advertising fund cash equivalents, restricted | 52,055 | 52,055 | — | — | ||||||||||||
Advertising fund investments, restricted | 35,000 | 35,000 | — | — | ||||||||||||
At September 8, 2019 | ||||||||||||||||
Fair Value Estimated Using | ||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Inputs | Inputs | Inputs | |||||||||||||
Cash equivalents | $ | 58,993 | $ | 58,993 | $ | — | $ | — | ||||||||
Restricted cash equivalents | 104,424 | 104,424 | — | — | ||||||||||||
Investments in marketable securities | 10,851 | 10,851 | — | — | ||||||||||||
Advertising fund cash equivalents, restricted | 57,682 | 57,682 | — | — | ||||||||||||
Advertising fund investments, restricted | 20,000 | 20,000 | — | — |
At December 30, 2018 | ||||||||||||||||
Fair Value Estimated Using | ||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Inputs | Inputs | Inputs | |||||||||||||
Cash equivalents | $ | 11,877 | $ | 11,877 | $ | — | $ | — | ||||||||
Restricted cash equivalents | 112,272 | 112,272 | — | — | ||||||||||||
Investments in marketable securities | 8,718 | 8,718 | — | — | ||||||||||||
Advertising fund cash equivalents, restricted | 31,547 | 31,547 | — | — | ||||||||||||
Advertising fund investments, restricted | 50,152 | 50,152 | — | — |
June 16, 2019 | December 30, 2018 | |||||||||||||||
Principal Amount | Fair Value | Principal Amount | Fair Value | |||||||||||||
2015 Ten-Year Fixed Rate Notes | $ | 776,000 | $ | 810,920 | $ | 780,000 | $ | 783,120 | ||||||||
2017 Five-Year Fixed Rate Notes | 589,500 | 589,500 | 592,500 | 575,910 | ||||||||||||
2017 Ten-Year Fixed Rate Notes | 982,500 | 1,014,923 | 987,500 | 956,888 | ||||||||||||
2017 Five-Year Floating Rate Notes | 294,750 | 294,455 | 296,250 | 295,065 | ||||||||||||
2018 7.5-Year Fixed Rate Notes | 420,750 | 432,952 | 422,875 | 416,955 | ||||||||||||
2018 9.25-Year Fixed Rate Notes | 396,000 | 413,820 | 398,000 | 396,010 |
September 8, 2019 | December 30, 2018 | |||||||||||||||
Principal Amount | Fair Value | Principal Amount | Fair Value | |||||||||||||
2015 Ten-Year Fixed Rate Notes | $ | 774,000 | $ | 817,344 | $ | 780,000 | $ | 783,120 | ||||||||
2017 Five-Year Fixed Rate Notes | 588,000 | 590,352 | 592,500 | 575,910 | ||||||||||||
2017 Ten-Year Fixed Rate Notes | 980,000 | 1,038,800 | 987,500 | 956,888 | ||||||||||||
2017 Five-Year Floating Rate Notes | 294,000 | 293,706 | 296,250 | 295,065 | ||||||||||||
2018 7.5-Year Fixed Rate Notes | 419,688 | 438,573 | 422,875 | 416,955 | ||||||||||||
2018 9.25-Year Fixed Rate Notes | 395,000 | 421,465 | 398,000 | 396,010 |
Two Fiscal Quarters Ended | Three Fiscal Quarters Ended | |||||||||||||||
June 16, | June 17, | September 8, | September 9, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Contract liabilities at beginning of period | $ | 19,900 | $ | 19,404 | $ | 19,900 | $ | 19,404 | ||||||||
Revenue recognized during the period | (2,630 | ) | (2,325 | ) | (3,923 | ) | (3,540 | ) | ||||||||
New deferrals due to cash received and other | 1,807 | 3,239 | 4,613 | 3,917 | ||||||||||||
Contract liabilities at end of period | $ | 19,077 | $ | 20,318 | $ | 20,590 | $ | 19,781 | ||||||||
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||
June 16, | June 16, | |||||||
2019 | 2019 | |||||||
Operating lease cost | $ | 9,518 | $ | 20,314 | ||||
Finance lease cost: | ||||||||
Amortization of right-of-use assets | 255 | 509 | ||||||
Interest on lease liabilities | 317 | 796 | ||||||
Total finance lease cost | $ | 572 | $ | 1,305 |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||
September 8, | September 8, | |||||||
2019 | 2019 | |||||||
Operating lease cost | $ | 9,150 | $ | 29,464 | ||||
Finance lease cost: | ||||||||
Amortization of right-of-use assets | 254 | 763 | ||||||
Interest on lease liabilities | 473 | 1,269 | ||||||
Total finance lease cost | $ | 727 | $ | 2,032 | ||||
June 16, | December 30, | |||||||
2019 | 2018 | |||||||
Land and buildings | $ | 22,183 | $ | 22,171 | ||||
Accumulated depreciation and amortization | (7,187 | ) | (6,678 | ) | ||||
Finance lease assets, net | $ | 14,996 | $ | 15,493 | ||||
Current portion of long-term debt | $ | 669 | $ | 643 | ||||
Long-term debt, less current portion | 16,087 | �� | 16,363 | |||||
Total principal payable on finance leases | $ | 16,756 | $ | 17,006 |
September 8, | December 30, | |||||||
2019 | 2018 | |||||||
Land and buildings | $ | 22,195 | $ | 22,171 | ||||
Accumulated depreciation and amortization | (7,441 | ) | (6,678 | ) | ||||
Finance lease assets, net | $ | 14,754 | $ | 15,493 | ||||
Current portion of long-term debt | $ | 685 | $ | 643 | ||||
Long-term debt, less current portion | 15,922 | 16,363 | ||||||
Total principal payable on finance leases | $ | 16,607 | $ | 17,006 | ||||
Operating | Finance | Operating | Finance | |||||||||||||
Leases | Leases | Leases | Leases | |||||||||||||
Weighted average remaining lease term | 8 years | 14 years | 8 years | 14 years | ||||||||||||
Weighted average discount rate | 3.9 | % | 11.3 | % | 3.8 | % | 11.4 | % |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
Fiscal Quarter Ended | Two Fiscal Quarters Ended | September 8, | September 8, | |||||||||||||
June 16, 2019 | June 16, 2019 | 2019 | 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 9,398 | $ | 20,088 | $ | 9,968 | $ | 30,056 | ||||||||
Operating cash flows from finance leases | 317 | 796 | 473 | 1,269 | ||||||||||||
Financing cash flows from finance leases | 106 | 261 | 161 | 422 | ||||||||||||
Right-of-use assets obtained in exchange for new lease obligations: | ||||||||||||||||
Operating leases | 13,391 | 26,368 | 23,434 | 49,802 | ||||||||||||
Finance leases | — | — | — | — |
Operating | Finance | |||||||
Leases | Leases | |||||||
2019 | $ | 19,825 | $ | 1,389 | ||||
2020 | 36,827 | 2,416 | ||||||
2021 | 34,323 | 2,434 | ||||||
2022 | 31,191 | 2,452 | ||||||
2023 | 28,591 | 2,475 | ||||||
Thereafter | 105,474 | 23,796 | ||||||
Total future minimum rental commitments | 256,231 | 34,962 | ||||||
Less – amounts representing interest | (37,770 | ) | (18,206 | ) | ||||
Total lease liabilities | $ | 218,461 | $ | 16,756 |
Operating | Finance | |||||||
Leases | Leases | |||||||
2019 | $ | 12,212 | $ | 791 | ||||
2020 | 40,157 | 2,417 | ||||||
2021 | 37,979 | 2,435 | ||||||
2022 | 34,819 | 2,453 | ||||||
2023 | 32,245 | 2,477 | ||||||
Thereafter | 116,664 | 23,810 | ||||||
Total future minimum rental commitments | 274,076 | 34,383 | ||||||
Less – amounts representing interest | (39,745 | ) | (17,776 | ) | ||||
Total lease liabilities | $ | 234,331 | $ | 16,607 | ||||
Operating | Finance | |||||||
Leases | Leases | |||||||
2019 | $ | 40,752 | $ | 2,396 | ||||
2020 | 37,519 | 2,415 | ||||||
2021 | 34,538 | 2,433 | ||||||
2022 | 30,763 | 2,451 | ||||||
2023 | 27,388 | 2,474 | ||||||
Thereafter | 100,310 | 23,781 | ||||||
Total future minimum rental commitments | $ | 271,270 | 35,950 | |||||
Less – amounts representing interest | (18,944 | ) | ||||||
Total principal payable on finance leases | $ | 17,006 | ||||||
Balance at December 30, 2018 | Adjustments Due to ASC 842 | Balance at December 31, 2018 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Prepaid expenses and other | $ | 25,710 | $ | (35 | ) | $ | 25,675 | |||||
Property, plant and equipment: | ||||||||||||
Construction in progress | 31,822 | (1,904 | ) | 29,918 | ||||||||
Other assets: | ||||||||||||
Operating lease right-of-use assets | — | 218,860 | 218,860 | |||||||||
Liabilities and stockholders’ deficit | ||||||||||||
Current liabilities: | ||||||||||||
Operating lease liabilities | — | 32,033 | 32,033 | |||||||||
Other accrued liabilities | 55,001 | (136 | ) | 54,865 | ||||||||
Long-term liabilities: | ||||||||||||
Operating lease liabilities | — | 194,736 | 194,736 | |||||||||
Other accrued liabilities | 40,807 | (9,712 | ) | 31,095 |
Balance at December 30, 2018 | Adjustments Due to ASC 842 | Balance at December 31, 2018 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Prepaid expenses and other | $ | 25,710 | $ | (35 | ) | $ | 25,675 | |||||
Property, plant and equipment: | ||||||||||||
Construction in progress | 31,822 | (1,904 | ) | 29,918 | ||||||||
Other assets: | ||||||||||||
Operating lease right-of-use assets | — | 218,860 | 218,860 | |||||||||
Liabilities and stockholders’ deficit | ||||||||||||
Current liabilities: | ||||||||||||
Operating lease liabilities | — | 32,033 | 32,033 | |||||||||
Other accrued liabilities | 55,001 | (136 | ) | 54,865 | ||||||||
Long-term liabilities: | ||||||||||||
Operating lease liabilities | — | 194,736 | 194,736 | |||||||||
Other accrued liabilities | 40,807 | (9,712 | ) | 31,095 |
Second Quarter of 2019 | Second Quarter of 2018 | Two Fiscal Quarters of 2019 | Two Fiscal Quarters of 2018 | |||||||||||||||||||||||||||||
Global retail sales growth | +5.1 | % | +12.6 | % | +4.8 | % | +14.7 | % | ||||||||||||||||||||||||
Same store sales growth: | ||||||||||||||||||||||||||||||||
U.S. Company-owned stores (1) | +2.1 | % | +5.1 | % | +2.6 | % | +5.8 | % | ||||||||||||||||||||||||
U.S. franchise stores (1) | +3.1 | % | +7.0 | % | +3.5 | % | +7.7 | % | ||||||||||||||||||||||||
U.S. stores | +3.0 | % | +6.9 | % | +3.5 | % | +7.6 | % | ||||||||||||||||||||||||
International stores (excluding foreign currency impact) | +2.4 | % | +4.0 | % | +2.1 | % | +4.4 | % | ||||||||||||||||||||||||
Store counts (at end of period): | ||||||||||||||||||||||||||||||||
U.S. Company-owned stores | 333 | 396 | ||||||||||||||||||||||||||||||
U.S. franchise stores | 5,612 | 5,296 | ||||||||||||||||||||||||||||||
U.S. stores | 5,945 | 5,692 | ||||||||||||||||||||||||||||||
International stores | 10,369 | 9,430 | ||||||||||||||||||||||||||||||
Total stores | 16,314 | 15,122 | ||||||||||||||||||||||||||||||
Income statement data: | ||||||||||||||||||||||||||||||||
Total revenues | $ | 811.6 | 100.0 | % | $ | 779.4 | 100.0 | % | $ | 1,647.6 | 100.0 | % | $ | 1,564.8 | 100.0 | % | ||||||||||||||||
Cost of sales | 495.0 | 61.0 | % | 485.8 | 62.3 | % | 1,008.7 | 61.2 | % | 971.3 | 62.1 | % | ||||||||||||||||||||
General and administrative | 89.2 | 11.0 | % | 86.5 | 11.1 | % | 178.9 | 10.9 | % | 170.7 | 10.9 | % | ||||||||||||||||||||
U.S. franchise advertising | 88.5 | 10.9 | % | 80.9 | 10.4 | % | 177.6 | 10.8 | % | 163.1 | 10.4 | % | ||||||||||||||||||||
Income from operations | 138.9 | 17.1 | % | 126.1 | 16.2 | % | 282.4 | 17.1 | % | 259.6 | 16.6 | % | ||||||||||||||||||||
Interest expense, net | (32.9 | ) | (4.0 | )% | (34.9 | ) | (4.5 | )% | (67.3 | ) | (4.0 | )% | (64.8 | ) | (4.1 | )% | ||||||||||||||||
Income before provision for income taxes | 106.0 | 13.1 | % | 91.2 | 11.7 | % | 215.1 | 13.1 | % | 194.9 | 12.5 | % | ||||||||||||||||||||
Provision for income taxes | 13.6 | 1.7 | % | 13.8 | 1.8 | % | 30.1 | 1.9 | % | 28.6 | 1.9 | % | ||||||||||||||||||||
Net income | $ | 92.4 | 11.4 | % | $ | 77.4 | 9.9 | % | $ | 185.0 | 11.2 | % | $ | 166.2 | 10.6 | % |
Third Quarter | Third Quarter | Three Fiscal | Three Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
Global retail sales growth | +5.8 | % | +8.3 | % | +5.2 | % | +12.5 | % | ||||||||||||||||||||||||
Same store sales growth: | ||||||||||||||||||||||||||||||||
U.S. Company-owned stores (1) | +1.7 | % | +4.9 | % | +2.3 | % | +5.4 | % | ||||||||||||||||||||||||
U.S. franchise stores (1) | +2.5 | % | +6.4 | % | +3.2 | % | +7.3 | % | ||||||||||||||||||||||||
U.S. stores | +2.4 | % | +6.3 | % | +3.1 | % | +7.1 | % | ||||||||||||||||||||||||
International stores (excluding foreign currency impact) | +1.7 | % | +3.3 | % | +2.0 | % | +4.0 | % | ||||||||||||||||||||||||
Store counts (at end of period): | ||||||||||||||||||||||||||||||||
U.S. Company-owned stores (1) | 333 | 386 | ||||||||||||||||||||||||||||||
U.S. franchise stores (1) | 5,652 | 5,365 | ||||||||||||||||||||||||||||||
U.S. stores | 5,985 | 5,751 | ||||||||||||||||||||||||||||||
International stores | 10,543 | 9,603 | ||||||||||||||||||||||||||||||
Total stores | 16,528 | 15,354 | ||||||||||||||||||||||||||||||
Income statement data: | ||||||||||||||||||||||||||||||||
Total revenues | $ | 820.8 | 100.0 | % | $ | 786.0 | 100.0 | % | $ | 2,468.4 | 100.0 | % | $ | 2,350.7 | 100.0 | % | ||||||||||||||||
Cost of sales | 504.6 | 61.5 | % | 490.7 | 62.4 | % | 1,513.2 | 61.3 | % | 1,462.0 | 62.2 | % | ||||||||||||||||||||
General and administrative | 83.7 | 10.2 | % | 80.4 | 10.2 | % | 262.6 | 10.7 | % | 251.1 | 10.7 | % | ||||||||||||||||||||
U.S. franchise advertising | 89.5 | 10.9 | % | 82.5 | 10.6 | % | 267.1 | 10.8 | % | 245.6 | 10.4 | % | ||||||||||||||||||||
Income from operations | 143.0 | 17.4 | % | 132.4 | 16.8 | % | 425.5 | 17.2 | % | 392.1 | 16.7 | % | ||||||||||||||||||||
Interest expense, net | (32.8 | ) | (4.0 | )% | (33.2 | ) | (4.2 | )% | (100.1 | ) | (4.0 | )% | (97.9 | ) | (4.2 | )% | ||||||||||||||||
Income before provision for income taxes | 110.2 | 13.4 | % | 99.2 | 12.6 | % | 325.4 | 13.2 | % | 294.1 | 12.5 | % | ||||||||||||||||||||
Provision for income taxes | 23.9 | 2.9 | % | 15.2 | 1.9 | % | 54.0 | 2.2 | % | 43.8 | 1.9 | % | ||||||||||||||||||||
Net income | $ | 86.4 | 10.5 | % | $ | 84.1 | 10.7 | % | $ | 271.4 | 11.0 | % | $ | 250.3 | 10.6 | % | ||||||||||||||||
(1) | During the second quarter of 2019, the Company sold 59 U.S. Company-owned stores to certain of its existing U.S. franchisees. The same store sales growth for these stores is reflected in U.S. franchise stores in the |
Second Quarter | Second Quarter | Two Fiscal | Two Fiscal | Third Quarter | Third Quarter | Three Fiscal | Three Fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Company-owned stores | $ | 105.0 | 12.9 | % | $ | 118.8 | 15.2 | % | $ | 228.5 | 13.9 | % | $ | 240.0 | 15.3 | % | $ | 94.6 | 11.5 | % | $ | 118.5 | 15.1 | % | $ | 323.0 | 13.1 | % | $ | 358.5 | 15.3 | % | ||||||||||||||||||||||||||||||||
U.S. franchise royalties and fees | 95.6 | 11.8 | % | 87.4 | 11.2 | % | 192.3 | 11.7 | % | 176.9 | 11.3 | % | 97.0 | 11.8 | % | 89.4 | 11.4 | % | 289.3 | 11.7 | % | 266.3 | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||
Supply chain | 467.6 | 57.6 | % | 440.9 | 56.6 | % | 939.7 | 57.0 | % | 881.0 | 56.4 | % | 485.1 | 59.1 | % | 445.1 | 56.6 | % | 1,424.8 | 57.8 | % | 1,326.1 | 56.4 | % | ||||||||||||||||||||||||||||||||||||||||
International franchise royalties and fees | 55.0 | 6.8 | % | 51.3 | 6.6 | % | 109.6 | 6.6 | % | 103.8 | 6.6 | % | 54.6 | 6.7 | % | 50.4 | 6.4 | % | 164.1 | 6.6 | % | 154.2 | 6.6 | % | ||||||||||||||||||||||||||||||||||||||||
U.S. franchise advertising | 88.5 | 10.9 | % | 80.9 | 10.4 | % | 177.6 | 10.8 | % | 163.1 | 10.4 | % | 89.5 | 10.9 | % | 82.5 | 10.5 | % | 267.1 | 10.8 | % | 245.6 | 10.4 | % | ||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 811.6 | 100.0 | % | $ | 779.4 | 100.0 | % | $ | 1,647.6 | 100.0 | % | $ | 1,564.8 | 100.0 | % | $ | 820.8 | 100.0 | % | $ | 786.0 | 100.0 | % | $ | 2,468.4 | 100.0 | % | $ | 2,350.7 | 100.0 | % | ||||||||||||||||||||||||||||||||
Second Quarter | Second Quarter | Two Fiscal | Two Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
U.S. Company-owned stores | $ | 105.0 | 36.3 | % | $ | 118.8 | 41.4 | % | $ | 228.5 | 38.2 | % | $ | 240.0 | 41.4 | % | ||||||||||||||||
U.S. franchise royalties and fees | 95.6 | 33.1 | % | 87.4 | 30.4 | % | 192.3 | 32.1 | % | 176.9 | 30.5 | % | ||||||||||||||||||||
U.S. franchise advertising | 88.5 | 30.6 | % | 80.9 | 28.2 | % | 177.6 | 29.7 | % | 163.1 | 28.1 | % | ||||||||||||||||||||
U.S. stores | $ | 289.1 | 100.0 | % | $ | 287.1 | 100.0 | % | $ | 598.4 | 100.0 | % | $ | 580.0 | 100.0 | % |
Third Quarter | Third Quarter | Three Fiscal | Three Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
U.S. Company-owned stores | $ | 94.6 | 33.6 | % | $ | 118.5 | 40.8 | % | $ | 323.0 | 36.7 | % | $ | 358.5 | 41.2 | % | ||||||||||||||||
U.S. franchise royalties and fees | 97.0 | 34.5 | % | 89.4 | 30.8 | % | 289.3 | 32.9 | % | 266.3 | 30.6 | % | ||||||||||||||||||||
U.S. franchise advertising | 89.5 | 31.9 | % | 82.5 | 28.4 | % | 267.1 | 30.4 | % | 245.6 | 28.2 | % | ||||||||||||||||||||
U.S. stores | $ | 281.1 | 100.0 | % | $ | 290.4 | 100.0 | % | $ | 879.5 | 100.0 | % | $ | 870.5 | 100.0 | % | ||||||||||||||||
Second Quarter | Second Quarter | Two Fiscal | Two Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
U.S. supply chain | $ | 424.6 | 90.8 | % | $ | 399.7 | 90.7 | % | $ | 853.3 | 90.8 | % | $ | 798.6 | 90.6 | % | ||||||||||||||||
International supply chain | 43.0 | 9.2 | % | 41.2 | 9.3 | % | 86.4 | 9.2 | % | 82.4 | 9.4 | % | ||||||||||||||||||||
Total supply chain | $ | 467.6 | 100.0 | % | $ | 440.9 | 100.0 | % | $ | 939.7 | 100.0 | % | $ | 881.0 | 100.0 | % |
Third Quarter | Third Quarter | Three Fiscal | Three Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
U.S. supply chain | $ | 440.1 | 90.7 | % | $ | 403.8 | 90.7 | % | $ | 1,293.3 | 90.8 | % | $ | 1,202.3 | 90.7 | % | ||||||||||||||||
International supply chain | 45.0 | 9.3 | % | 41.3 | 9.3 | % | 131.5 | 9.2 | % | 123.8 | 9.3 | % | ||||||||||||||||||||
Total supply chain | $ | 485.1 | 100.0 | % | $ | 445.1 | 100.0 | % | $ | 1,424.8 | 100.0 | % | $ | 1,326.1 | 100.0 | % | ||||||||||||||||
Second Quarter | Second Quarter | Two Fiscal | Two Fiscal | Third Quarter | Third Quarter | Three Fiscal | Three Fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated revenues | $ | 811.6 | 100.0 | % | $ | 779.4 | 100.0 | % | $ | 1,647.6 | 100.0 | % | $ | 1,564.8 | 100.0 | % | $ | 820.8 | 100.0 | % | $ | 786.0 | 100.0 | % | $ | 2,468.4 | 100.0 | % | $ | 2,350.7 | 100.0 | % | ||||||||||||||||||||||||||||||||
Consolidated cost of sales | 495.0 | 61.0 | % | 485.8 | 62.3 | % | 1,008.7 | 61.2 | % | 971.3 | 62.1 | % | 504.6 | 61.5 | % | 490.7 | 62.4 | % | 1,513.2 | 61.3 | % | 1,462.0 | 62.2 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated operating margin | $ | 316.7 | 39.0 | % | $ | 293.6 | 37.7 | % | $ | 639.0 | 38.8 | % | $ | 593.4 | 37.9 | % | $ | 316.3 | 38.5 | % | $ | 295.3 | 37.6 | % | $ | 955.2 | 38.7 | % | $ | 888.7 | 37.8 | % | ||||||||||||||||||||||||||||||||
Second Quarter | Second Quarter | Two Fiscal | Two Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
Revenues | $ | 105.0 | 100.0 | % | $ | 118.8 | 100.0 | % | $ | 228.5 | 100.0 | % | $ | 240.0 | 100.0 | % | ||||||||||||||||
Cost of sales | 80.4 | 76.5 | % | 92.0 | 77.4 | % | 175.9 | 77.0 | % | 185.0 | 77.1 | % | ||||||||||||||||||||
Store operating margin | $ | 24.6 | 23.5 | % | $ | 26.8 | 22.6 | % | $ | 52.5 | 23.0 | % | $ | 55.0 | 22.9 | % |
Third Quarter | Third Quarter | Three Fiscal | Three Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
Revenues | $ | 94.6 | 100.0 | % | $ | 118.5 | 100.0 | % | $ | 323.0 | 100.0 | % | $ | 358.5 | 100.0 | % | ||||||||||||||||
Cost of sales | 71.6 | 75.7 | % | 93.0 | 78.5 | % | 247.5 | 76.6 | % | 278.0 | 77.5 | % | ||||||||||||||||||||
Store operating margin | $ | 23.0 | 24.3 | % | $ | 25.5 | 21.5 | % | $ | 75.5 | 23.4 | % | $ | 80.5 | 22.5 | % | ||||||||||||||||
Second Quarter | Second Quarter | Two Fiscal | Two Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
Revenues | $ | 467.6 | 100.0 | % | $ | 440.9 | 100.0 | % | $ | 939.7 | 100.0 | % | $ | 881.0 | 100.0 | % | ||||||||||||||||
Cost of sales | 414.6 | 88.7 | % | 393.8 | 89.3 | % | 832.7 | 88.6 | % | 786.3 | 89.3 | % | ||||||||||||||||||||
Supply chain operating margin | $ | 53.0 | 11.3 | % | $ | 47.1 | 10.7 | % | $ | 106.9 | 11.4 | % | $ | 94.7 | 10.7 | % |
Third Quarter | Third Quarter | Three Fiscal | Three Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
Revenues | $ | 485.1 | 100.0 | % | $ | 445.1 | 100.0 | % | $ | 1,424.8 | 100.0 | % | $ | 1,326.1 | 100.0 | % | ||||||||||||||||
Cost of sales | 433.0 | 89.2 | % | 397.7 | 89.3 | % | 1,265.7 | 88.8 | % | 1,184.0 | 89.3 | % | ||||||||||||||||||||
Supply chain operating margin | $ | 52.2 | 10.8 | % | $ | 47.4 | 10.7 | % | $ | 159.1 | 11.2 | % | $ | 142.1 | 10.7 | % | ||||||||||||||||
(In millions) | Two Fiscal Quarters of 2019 | Two Fiscal Quarters of 2018 | ||||||
Cash Flows Provided By (Used In) | ||||||||
Net cash provided by operating activities | $ | 201.6 | $ | 154.7 | ||||
Net cash used in investing activities | (2.5 | ) | (43.8 | ) | ||||
Net cash used in financing activities | (114.3 | ) | (30.1 | ) | ||||
Exchange rate changes | 0.1 | (0.1 | ) | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | $ | 84.8 | $ | 80.7 | ||||
(In millions) | Three Fiscal Quarters of 2019 | Three Fiscal Quarters of 2018 | ||||||
Cash Flows Provided By (Used In) | ||||||||
Net cash provided by operating activities | $ | 324.6 | $ | 262.5 | ||||
Net cash used in investing activities | (3.1 | ) | (65.4 | ) | ||||
Net cash used in financing activities | (246.3 | ) | (172.1 | ) | ||||
Exchange rate changes | 0.1 | (0.2 | ) | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | $ | 75.3 | $ | 24.9 | ||||
Maximum Approximate Dollar | ||||||||||||||||
Total Number of Shares | Value of Shares that | |||||||||||||||
Total Number | Purchased as Part of | May Yet Be Purchased | ||||||||||||||
of Shares | Average Price Paid | Publicly Announced | Under the Program | |||||||||||||
Period | Purchased (1) | Per Share | Program (2) | (in thousands) | ||||||||||||
Period #4 (March 25, 2019 to April 21, 2019) | 1,909 | $ | 247.89 | — | $ | 150,645 | ||||||||||
Period #5 (April 22, 2019 to May 19, 2019) | 13,577 | 269.56 | 12,295 | 147,336 | ||||||||||||
Period #6 (May 20, 2019 to June 16, 2019) | 1,348 | 283.44 | — | 147,336 | ||||||||||||
Total | 16,834 | $ | 268.22 | 12,295 | $ | 147,336 | ||||||||||
Maximum Approximate Dollar | ||||||||||||||||
Total Number of Shares | Value of Shares that | |||||||||||||||
Total Number | Purchased as Part of | May Yet Be Purchased | ||||||||||||||
of Shares | Average Price Paid | Publicly Announced | Under the Program | |||||||||||||
Period | Purchased (1) | Per Share | Program (2) | (in thousands) | ||||||||||||
Period #7 (June 17, 2019 to July 14, 2019) | 1,194 | $ | 275.16 | — | $ | 147,336 | ||||||||||
Period #8 (July 15, 2019 to August 11, 2019) | 231,739 | 252.72 | 230,097 | 89,166 | ||||||||||||
Period #9 (August 12, 2019 to September 8, 2019) | 157,402 | 230.44 | 154,241 | 53,640 | ||||||||||||
Total | 390,335 | $ | 243.81 | 384,338 | $ | 53,640 | ||||||||||
(1) |
(2) | As previously disclosed, on February 14, 2018, the Company’s Board of Directors authorized a $750.0 million share repurchase program, which has no expiration date. As of |
Exhibit Number | Description | |||
31.1 | ||||
31.2 | ||||
32.1 | ||||
32.2 | ||||
101.INS | XBRL Instance | |||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
DOMINO’S PIZZA, INC. (Registrant) | ||||||
Date: | /s/ Jeffrey D. Lawrence | |||||
Jeffrey D. Lawrence | ||||||
Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) |