☒ | 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. | 14 | |||||
Item 3. | 21 | |||||
Item 4. | 21 | |||||
PART II. | ||||||
Item 1. | 22 | |||||
Item 1A. | 22 | |||||
Item 2. | 23 | |||||
Item 3. | 23 | |||||
Item 4. | 23 | |||||
Item 5. | 23 | |||||
Item 6. | 23 | |||||
24 |
(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 | ||||
(In thousands) | March 22, 2020 | December 29, 2019 (1) | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 200,801 | $ | 190,615 | ||||
Restricted cash and cash equivalents | 189,370 | 209,269 | ||||||
Accounts receivable, net | 219,199 | 210,260 | ||||||
Inventories | 49,010 | 52,955 | ||||||
Prepaid expenses and other | 26,025 | 19,129 | ||||||
Advertising fund assets, restricted | 109,969 | 105,389 | ||||||
Total current assets | 794,374 | 787,617 | ||||||
Property, plant and equipment: | ||||||||
Land and buildings | 44,732 | 44,845 | ||||||
Leasehold and other improvements | 165,843 | 164,071 | ||||||
Equipment | 249,467 | 243,708 | ||||||
Construction in progress | 39,806 | 42,705 | ||||||
499,848 | 495,329 | |||||||
Accumulated depreciation and amortization | (259,131 | ) | (252,448 | ) | ||||
Property, plant and equipment, net | 240,717 | 242,881 | ||||||
Other assets: | ||||||||
Operating lease right-of-use assets | 228,940 | 228,785 | ||||||
Goodwill | 15,061 | 15,093 | ||||||
Capitalized software, net | 74,203 | 73,140 | ||||||
Other assets | 27,539 | 24,503 | ||||||
Deferred income taxes | 9,042 | 10,073 | ||||||
Total other assets | 354,785 | 351,594 | ||||||
Total assets | $ | 1,389,876 | $ | 1,382,092 | ||||
Liabilities and stockholders’ deficit | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 43,390 | $ | 43,394 | ||||
Accounts payable | 94,502 | 111,101 | ||||||
Operating lease liabilities | 36,914 | 33,318 | ||||||
Insurance reserves | 23,453 | 23,735 | ||||||
Dividends payable | 30,985 | 471 | ||||||
Advertising fund liabilities | 106,832 | 101,921 | ||||||
Other accrued liabilities | 116,093 | 139,891 | ||||||
Total current liabilities | 452,169 | 453,831 | ||||||
Long-term liabilities: | ||||||||
Long-term debt, less current portion | 4,061,198 | 4,071,055 | ||||||
Operating lease liabilities | 199,304 | 202,731 | ||||||
Insurance reserves | 35,362 | 34,675 | ||||||
Other accrued liabilities | 34,033 | 35,559 | ||||||
Total long-term liabilities | 4,329,897 | 4,344,020 | ||||||
Stockholders’ deficit: | ||||||||
Common stock | 390 | 389 | ||||||
Additional paid-in capital | 12,474 | 243 | ||||||
Retained deficit | (3,398,986 | ) | (3,412,649 | ) | ||||
Accumulated other comprehensive loss | (6,068 | ) | (3,742 | ) | ||||
Total stockholders’ deficit | (3,392,190 | ) | (3,415,759 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 1,389,876 | $ | 1,382,092 | ||||
(1) | The balance sheet at December |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | Fiscal Quarter Ended | ||||||||||||||||||||||
September 8, | September 9, | September 8, | September 9, | March 22, | March 24, | |||||||||||||||||||
(In thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | ||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
U.S. Company-owned stores | $ | 94,575 | $ | 118,540 | $ | 323,026 | $ | 358,521 | $ | 102,326 | $ | 123,450 | ||||||||||||
U.S. franchise royalties and fees | 97,047 | 89,427 | 289,349 | 266,335 | 104,746 | 96,708 | ||||||||||||||||||
Supply chain | 485,110 | 445,096 | 1,424,787 | 1,326,076 | 512,700 | 472,100 | ||||||||||||||||||
International franchise royalties and fees | 54,586 | 50,424 | 164,145 | 154,182 | 57,496 | 54,584 | ||||||||||||||||||
U.S. franchise advertising | 89,494 | 82,478 | 267,115 | 245,618 | 95,834 | 89,121 | ||||||||||||||||||
Total revenues | 820,812 | 785,965 | 2,468,422 | 2,350,732 | 873,102 | 835,963 | ||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||
U.S. Company-owned stores | 71,610 | 92,998 | 247,516 | 278,012 | 79,388 | 95,540 | ||||||||||||||||||
Supply chain | 432,951 | 397,688 | 1,265,695 | 1,183,996 | 453,557 | 418,134 | ||||||||||||||||||
Total cost of sales | 504,561 | 490,686 | 1,513,211 | 1,462,008 | 532,945 | 513,674 | ||||||||||||||||||
Operating margin | 316,251 | 295,279 | 955,211 | 888,724 | 340,157 | 322,289 | ||||||||||||||||||
General and administrative | 83,728 | 80,369 | 262,640 | 251,053 | 88,489 | 89,664 | ||||||||||||||||||
U.S. franchise advertising | 89,494 | 82,478 | 267,115 | 245,618 | 95,834 | 89,121 | ||||||||||||||||||
Income from operations | 143,029 | 132,432 | 425,456 | 392,053 | 155,834 | 143,504 | ||||||||||||||||||
Interest income | 968 | 792 | 2,583 | 2,451 | 932 | 693 | ||||||||||||||||||
Interest expense | (33,752 | ) | (33,976 | ) | (102,672 | ) | (100,389 | ) | (39,470 | ) | (35,054 | ) | ||||||||||||
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 | ||||||||||||||||||||
Income before (benefit) provision for income taxes | 117,296 | 109,143 | ||||||||||||||||||||||
(Benefit) provision for income taxes | (4,306 | ) | 16,493 | |||||||||||||||||||||
Net income | $ | 86,373 | $ | 84,095 | $ | 271,382 | $ | 250,330 | $ | 121,602 | $ | 92,650 | ||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Common stock - basic | $ | 2.11 | $ | 2.02 | $ | 6.63 | $ | 5.94 | $ | 3.14 | $ | 2.27 | ||||||||||||
Common stock - diluted | 2.05 | 1.95 | 6.44 | 5.73 | 3.07 | 2.20 |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | Fiscal Quarter Ended | ||||||||||||||||||||||
September 8, | September 9, | September 8, | September 9, | March 22, | March 24, | |||||||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | 2020 | 2019 | ||||||||||||||||||
Net income | $ | 86,373 | $ | 84,095 | $ | 271,382 | $ | 250,330 | $ | 121,602 | $ | 92,650 | ||||||||||||
Currency translation adjustment | 270 | (84 | ) | 491 | (1,142 | ) | (2,326 | ) | 237 | |||||||||||||||
Comprehensive income | $ | 86,643 | $ | 84,011 | $ | 271,873 | $ | 249,188 | $ | 119,276 | $ | 92,887 | ||||||||||||
Fiscal Quarter Ended | ||||||||
March 22, | March 24, | |||||||
(In thousands) | 2020 | 2019 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 121,602 | $ | 92,650 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 14,032 | 13,790 | ||||||
Loss on sale/disposal of assets | 306 | 149 | ||||||
Amortization of debt issuance costs | 1,291 | 1,101 | ||||||
Provision for deferred income taxes | 702 | 1,467 | ||||||
Non-cash compensation expense | 4,914 | 4,608 | ||||||
Excess tax benefits from equity-based compensation | (30,449 | ) | (8,663 | ) | ||||
Provision for losses on accounts and notes receivable | 1,589 | 94 | ||||||
Changes in operating assets and liabilities | (23,119 | ) | 1,974 | |||||
Changes in advertising fund assets and liabilities, restricted | 4,490 | (10,172 | ) | |||||
Net cash provided by operating activities | 95,358 | 96,998 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (17,467 | ) | (12,222 | ) | ||||
Other | (426 | ) | 262 | |||||
Net cash used in investing activities | (17,893 | ) | (11,960 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayments of long-term debt and finance lease obligations | (10,849 | ) | (48,968 | ) | ||||
Proceeds from exercise of stock options | 10,105 | 4,537 | ||||||
Purchases of common stock | (79,590 | ) | (8,144 | ) | ||||
Tax payments for restricted stock upon vesting | (1,796 | ) | (2,467 | ) | ||||
Payments of common stock dividends and equivalents | (80 | ) | (90 | ) | ||||
Other | 152 | — | ||||||
Net cash used in financing activities | (82,058 | ) | (55,132 | ) | ||||
Effect of exchange rate changes on cash | (961 | ) | 124 | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | (5,554 | ) | 30,030 | |||||
Cash and cash equivalents, beginning of period | 190,615 | 25,438 | ||||||
Restricted cash and cash equivalents, beginning of period | 209,269 | 166,993 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 84,040 | 44,988 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 483,924 | 237,419 | ||||||
Cash and cash equivalents, end of period | 200,801 | 83,114 | ||||||
Restricted cash and cash equivalents, end of period | 189,370 | 150,055 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 88,199 | 34,280 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ | 478,370 | $ | 267,449 | ||||
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 September 8, 2019 and September 9, 2018 | Fiscal Quarters Ended March 22, 2020 and March 24, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Supply | International | Intersegment | U.S. | Supply | International | Intersegment | |||||||||||||||||||||||||||||||||||||||||
Stores | Chain | Franchise | Revenues | Other | Total | Stores | Chain | Franchise | Revenues | Other | Total | |||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | $ | 302,906 | $ | 541,639 | $ | 57,496 | $ | (28,939 | ) | $ | — | $ | 873,102 | |||||||||||||||||||||||||||||||||||
2019 | $ | 281,116 | $ | 511,709 | $ | 54,586 | $ | (26,599 | ) | $ | — | $ | 820,812 | 309,279 | 505,681 | 54,584 | (33,581 | ) | — | 835,963 | ||||||||||||||||||||||||||||
2018 | 290,445 | 478,517 | 50,424 | (33,421 | ) | — | 785,965 | |||||||||||||||||||||||||||||||||||||||||
Income from operations | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | $ | 85,410 | $ | 47,375 | $ | 43,460 | N/A | $ | (20,411 | ) | $ | 155,834 | ||||||||||||||||||||||||||||||||||||
2019 | $ | 80,188 | $ | 40,513 | $ | 42,281 | N/A | $ | (19,953 | ) | $ | 143,029 | 80,615 | 42,021 | 42,754 | N/A | (21,886 | ) | 143,504 | |||||||||||||||||||||||||||||
2018 | 78,636 | 35,452 | 39,374 | N/A | (21,030 | ) | 132,432 | |||||||||||||||||||||||||||||||||||||||||
Segment Income | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 | $ | 88,277 | $ | 51,437 | $ | 43,504 | N/A | $ | (8,132 | ) | $ | 175,086 | ||||||||||||||||||||||||||||||||||||
2019 | $ | 82,556 | $ | 44,432 | $ | 42,337 | N/A | $ | (8,172 | ) | $ | 161,153 | 83,598 | 46,047 | 42,800 | N/A | (10,394 | ) | 162,051 | |||||||||||||||||||||||||||||
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 | Three Fiscal Quarters Ended | Fiscal Quarter Ended | ||||||||||||||||||||||
September 8, | September 9, | September 8, | September 9, | March 22, | March 24, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | |||||||||||||||||||
Total Segment Income | $ | 161,153 | $ | 143,403 | $ | 482,848 | $ | 438,828 | $ | 175,086 | $ | 162,051 | ||||||||||||
Depreciation and amortization | (13,132 | ) | (12,460 | ) | (40,982 | ) | (35,770 | ) | (14,032 | ) | (13,790 | ) | ||||||||||||
(Loss) gain on sale/disposal of assets | (312 | ) | 5,706 | (3,141 | ) | 5,187 | ||||||||||||||||||
Loss on sale/disposal of assets | (306 | ) | (149 | ) | ||||||||||||||||||||
Non-cash compensation expense | (4,680 | ) | (4,217 | ) | (13,269 | ) | (15,660 | ) | (4,914 | ) | (4,608 | ) | ||||||||||||
Recapitalization-related expenses | — | — | — | (532 | ) | |||||||||||||||||||
Income from operations | 143,029 | 132,432 | 425,456 | 392,053 | 155,834 | 143,504 | ||||||||||||||||||
Interest income | 968 | 792 | 2,583 | 2,451 | 932 | 693 | ||||||||||||||||||
Interest expense | (33,752 | ) | (33,976 | ) | (102,672 | ) | (100,389 | ) | (39,470 | ) | (35,054 | ) | ||||||||||||
Income before provision for income taxes | $ | 110,245 | $ | 99,248 | $ | 325,367 | $ | 294,115 | ||||||||||||||||
Income before (benefit) provision for income taxes | $ | 117,296 | $ | 109,143 | ||||||||||||||||||||
Fiscal Quarter Ended | Three Fiscal Quarters Ended | Fiscal Quarter Ended | ||||||||||||||||||||||
September 8, | September 9, | September 8, | September 9, | March 22, | March 24, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | |||||||||||||||||||
Net income available to common stockholders - basic and diluted | $ | 86,373 | $ | 84,095 | $ | 271,382 | $ | 250,330 | $ | 121,602 | $ | 92,650 | ||||||||||||
Basic weighted average number of shares | 40,954,279 | 41,585,933 | 40,947,693 | 42,150,693 | 38,665,924 | 40,865,532 | ||||||||||||||||||
Earnings per share – basic | $ | 2.11 | $ | 2.02 | $ | 6.63 | $ | 5.94 | $ | 3.14 | $ | 2.27 | ||||||||||||
Diluted weighted average number of shares | 42,040,291 | 43,067,191 | 42,158,447 | 43,675,627 | 39,633,404 | 42,202,429 | ||||||||||||||||||
Earnings per share – diluted | $ | 2.05 | $ | 1.95 | $ | 6.44 | $ | 5.73 | $ | 3.07 | $ | 2.20 |
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | |||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at June 16, 2019 | 41,232,358 | $ | 412 | $ | 10,788 | $ | (2,911,278 | ) | $ | (4,208 | ) | |||||||||
Net income | — | — | — | 86,373 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($0.65 per share) | — | — | — | (26,569 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 45,479 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (12,603 | ) | — | (3,253 | ) | — | — | |||||||||||||
Purchases of common stock | (384,338 | ) | (3 | ) | (12,972 | ) | (80,721 | ) | — | |||||||||||
Exercise of stock options | 18,100 | — | 832 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 4,680 | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | 270 | |||||||||||||||
Balance at September 8, 2019 | 40,898,996 | $ | 409 | $ | 75 | $ | (2,932,195 | ) | $ | (3,938 | ) | |||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | |||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at December 30, 2018 | 40,977,561 | $ | 410 | $ | 569 | $ | (3,036,471 | ) | $ | (4,429 | ) | |||||||||
Net income | — | — | — | 271,382 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($1.95 per share) | — | — | — | (80,023 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 50,640 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (22,044 | ) | — | (5,820 | ) | — | — | |||||||||||||
Purchases of common stock | (430,182 | ) | (4 | ) | (18,062 | ) | (87,083 | ) | — | |||||||||||
Exercise of stock options | 323,021 | 3 | 10,119 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 13,269 | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | 491 | |||||||||||||||
Balance at September 8, 2019 | 40,898,996 | $ | 409 | $ | 75 | $ | (2,932,195 | ) | $ | (3,938 | ) | |||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | |||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at December 29, 2019 | 38,934,009 | $ | 389 | $ | 243 | $ | (3,412,649 | ) | $ | (3,742 | ) | |||||||||
Net income | — | — | — | 121,602 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($0.78 per share) | — | — | — | (30,442 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 1,645 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (5,929 | ) | — | (1,796 | ) | — | — | |||||||||||||
Purchases of common stock | (271,064 | ) | (3 | ) | (988 | ) | (78,599 | ) | — | |||||||||||
Exercise of stock options | 380,938 | 4 | 10,101 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 4,914 | — | — | |||||||||||||||
Adoption of ASC 326 (Note 9 ) | — | — | — | 1,102 | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | (2,326 | ) | ||||||||||||||
Balance at March 22, 2020 | 39,039,599 | $ | 390 | $ | 12,474 | $ | (3,398,986 | ) | $ | (6,068 | ) | |||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | |||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at June 17, 2018 | 41,837,693 | $ | 418 | $ | 737 | $ | (2,926,921 | ) | $ | (3,439 | ) | |||||||||
Net income | — | — | — | 84,095 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($0.55 per share) | — | — | — | (22,889 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 72,990 | 1 | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (16,580 | ) | — | (4,531 | ) | — | — | |||||||||||||
Purchases of common stock | (397,490 | ) | (4 | ) | (2,269 | ) | (106,850 | ) | — | |||||||||||
Exercise of stock options | 99,549 | 1 | 3,760 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 4,217 | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | (84 | ) | ||||||||||||||
Balance at September 9, 2018 | 41,596,162 | $ | 416 | $ | 1,914 | $ | (2,972,565 | ) | $ | (3,523 | ) | |||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | |||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at December 31, 2017 | 42,898,329 | $ | 429 | $ | 5,654 | $ | (2,739,437 | ) | $ | (2,030 | ) | |||||||||
Net income | — | — | — | 250,330 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($1.65 per share) | — | — | — | (69,450 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 80,932 | 1 | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (26,893 | ) | — | (6,849 | ) | — | — | |||||||||||||
Purchases of common stock | (1,751,054 | ) | (18 | ) | (21,514 | ) | (407,658 | ) | — | |||||||||||
Exercise of stock options | 394,848 | 4 | 8,963 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 15,660 | — | — | |||||||||||||||
Adoption of revenue recognition accounting standard | — | — | — | (6,701 | ) | — | ||||||||||||||
Currency translation adjustment | — | — | — | — | (1,142 | ) | ||||||||||||||
Reclassification adjustment for stranded taxes | — | — | — | 351 | (351 | ) | ||||||||||||||
Balance at September 9, 2018 | 41,596,162 | $ | 416 | $ | 1,914 | $ | (2,972,565 | ) | $ | (3,523 | ) | |||||||||
Accumulated | ||||||||||||||||||||
Additional | Other | |||||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | |||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at December 30, 2018 | 40,977,561 | $ | 410 | $ | 569 | $ | (3,036,471 | ) | $ | (4,429 | ) | |||||||||
Net income | — | — | — | 92,650 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($0.65 per share) | — | — | — | (26,665 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 8,240 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (9,064 | ) | — | (2,467 | ) | — | — | |||||||||||||
Purchases of common stock | (33,549 | ) | — | (1,782 | ) | (6,362 | ) | — | ||||||||||||
Exercise of stock options | 140,702 | 1 | 4,536 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 4,608 | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | 237 | |||||||||||||||
Balance at March 24, 2019 | 41,083,890 | $ | 411 | $ | 5,464 | $ | (2,976,848 | ) | $ | (4,192 | ) | |||||||||
At September 8, 2019 | At March 22, 2020 | |||||||||||||||||||||||||||||||
Fair Value Estimated Using | Fair Value Estimated Using | |||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Carrying | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Amount | Inputs | Inputs | Inputs | Amount | Inputs | Inputs | Inputs | |||||||||||||||||||||||||
Cash equivalents | $ | 58,993 | $ | 58,993 | $ | — | $ | — | $ | 173,317 | $ | 173,317 | $ | — | $ | — | ||||||||||||||||
Restricted cash equivalents | 104,424 | 104,424 | — | — | 106,225 | 106,225 | — | — | ||||||||||||||||||||||||
Investments in marketable securities | 10,851 | 10,851 | — | — | 10,989 | 10,989 | — | — | ||||||||||||||||||||||||
Advertising fund cash equivalents, restricted | 57,682 | 57,682 | — | — | 78,134 | 78,134 | — | — | ||||||||||||||||||||||||
Advertising fund investments, restricted | 20,000 | 20,000 | — | — |
At December 29, 2019 | ||||||||||||||||
Fair Value Estimated Using | ||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Inputs | Inputs | Inputs | |||||||||||||
Cash equivalents | $ | 180,459 | $ | 180,459 | $ | — | $ | — | ||||||||
Restricted cash equivalents | 126,963 | 126,963 | — | — | ||||||||||||
Investments in marketable securities | 11,982 | 11,982 | — | — | ||||||||||||
Advertising fund cash equivalents, restricted | 67,851 | 67,851 | — | — |
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 | — | — |
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 |
March 22, 2020 | December 29, 2019 | |||||||||||||||
Principal Amount | Fair Value | Principal Amount | Fair Value | |||||||||||||
2015 Ten-Year Fixed Rate Notes | $ | 772,000 | $ | 711,784 | $ | 774,000 | $ | 804,960 | ||||||||
2017 Five-Year Fixed Rate Notes | 586,500 | 549,551 | 588,000 | 588,588 | ||||||||||||
2017 Ten-Year Fixed Rate Notes | 977,500 | 825,010 | 980,000 | 1,017,240 | ||||||||||||
2017 Five-Year Floating Rate Notes | 293,250 | 251,315 | 294,000 | 294,000 | ||||||||||||
2018 7.5-Year Fixed Rate Notes | 418,625 | 387,228 | 419,688 | 431,439 | ||||||||||||
2018 9.25-Year Fixed Rate Notes | 394,000 | 351,054 | 395,000 | 414,355 | ||||||||||||
2019 Ten-Year Fixed Rate Notes | 673,313 | 544,037 | 675,000 | 675,675 |
Three Fiscal Quarters Ended | ||||||||
September 8, | September 9, | |||||||
2019 | 2018 | |||||||
Contract liabilities at beginning of period | $ | 19,900 | $ | 19,404 | ||||
Revenue recognized during the period | (3,923 | ) | (3,540 | ) | ||||
New deferrals due to cash received and other | 4,613 | 3,917 | ||||||
Contract liabilities at end of period | $ | 20,590 | $ | 19,781 | ||||
Fiscal Quarter Ended | ||||||||
March 22, | March 24, | |||||||
2020 | 2019 | |||||||
Deferred franchise fees and deferred development fees at beginning of period | $ | 20,463 | $ | 19,900 | ||||
Revenue recognized during the period | (1,417 | ) | (1,361 | ) | ||||
New deferrals due to cash received and other | 724 | 900 | ||||||
Deferred franchise fees and deferred development fees at end of period | $ | 19,770 | $ | 19,439 | ||||
Fiscal Quarter Ended | Three Fiscal Quarters Ended | Fiscal Quarter Ended | ||||||||||||||
September 8, | September 8, | March 22, | March 24, | |||||||||||||
2019 | 2019 | 2020 | 2019 | |||||||||||||
Operating lease cost | $ | 9,150 | $ | 29,464 | $ | 9,582 | $ | 10,796 | ||||||||
Finance lease cost: | ||||||||||||||||
Amortization of right-of-use assets | 254 | 763 | 249 | 254 | ||||||||||||
Interest on lease liabilities | 473 | 1,269 | 375 | 479 | ||||||||||||
Total finance lease cost | $ | 727 | $ | 2,032 | $ | 624 | $ | 733 | ||||||||
September 8, | December 30, | March 22, | December 29, | |||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
Land and buildings | $ | 22,195 | $ | 22,171 | $ | 25,167 | $ | 25,476 | ||||||||
Accumulated depreciation and amortization | (7,441 | ) | (6,678 | ) | (8,083 | ) | (7,846 | ) | ||||||||
Finance lease assets, net | $ | 14,754 | $ | 15,493 | $ | 17,084 | $ | 17,630 | ||||||||
Current portion of long-term debt | $ | 685 | $ | 643 | $ | 1,390 | $ | 1,394 | ||||||||
Long-term debt, less current portion | 15,922 | 16,363 | 17,616 | 18,263 | ||||||||||||
Total principal payable on finance leases | $ | 16,607 | $ | 17,006 | $ | 19,006 | $ | 19,657 | ||||||||
March 22, 2020 | December 29, 2019 | |||||||||||||||||||||||
Operating | Finance | Operating | Finance | Operating | Finance | |||||||||||||||||||
Leases | Leases | Leases | Leases | Leases | Leases | |||||||||||||||||||
Weighted average remaining lease term | 8 years | 14 years | 8 years | 14 years | 8 years | 14 years | ||||||||||||||||||
Weighted average discount rate | 3.8 | % | 11.4 | % | 3.8 | % | 11.7 | % | 3.8 | % | 11.7 | % |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | Fiscal Quarter Ended | ||||||||||||||
September 8, | September 8, | March 22, | March 2 4 , | |||||||||||||
2019 | 2019 | 2020 | 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 9,968 | $ | 30,056 | $ | 10,119 | $ | 10,690 | ||||||||
Operating cash flows from finance leases | 473 | 1,269 | 375 | 479 | ||||||||||||
Financing cash flows from finance leases | 161 | 422 | 349 | 155 | ||||||||||||
Right-of-use assets obtained in exchange for new lease obligations: | ||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||||||||||
Operating leases | 23,434 | 49,802 | 8,982 | 12,977 | ||||||||||||
Finance leases | — | — | — | — |
Operating | Finance | Operating | Finance | |||||||||||||
Leases | Leases | Leases | Leases | |||||||||||||
2019 | $ | 12,212 | $ | 791 | ||||||||||||
2020 | 40,157 | 2,417 | $ | 33,683 | $ | 2,467 | ||||||||||
2021 | 37,979 | 2,435 | 40,956 | 2,775 | ||||||||||||
2022 | 34,819 | 2,453 | 38,068 | 2,792 | ||||||||||||
2023 | 32,245 | 2,477 | 32,776 | 2,815 | ||||||||||||
2024 | 31,228 | 2,839 | ||||||||||||||
Thereafter | 116,664 | 23,810 | 96,570 | 25,493 | ||||||||||||
Total future minimum rental commitments | 274,076 | 34,383 | 273,281 | 39,181 | ||||||||||||
Less – amounts representing interest | (39,745 | ) | (17,776 | ) | (37,063 | ) | (20,175 | ) | ||||||||
Total lease liabilities | $ | 234,331 | $ | 16,607 | $ | 236,218 | $ | 19,006 | ||||||||
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 29, 2019 | Adjustments Due to ASC 326 | Balance at December 30, 2019 | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Accounts receivable, net | $ | 210,260 | $ | 1,435 | $ | 211,695 | ||||||
Prepaid expenses and other | 19,129 | 4 | 19,133 | |||||||||
Other assets: | ||||||||||||
Other assets | 12,521 | 27 | 12,548 | |||||||||
Deferred income taxes | 10,073 | (364 | ) | 9,709 | ||||||||
Liabilities and stockholders’ deficit | ||||||||||||
Stockholders’ deficit: | ||||||||||||
Retained deficit | (3,412,649 | ) | 1,102 | (3,411,547 | ) |
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 |
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 | % | ||||||||||||||||
First Quarter | First Quarter | |||||||||||||||
of 2020 | of 2019 | |||||||||||||||
Global retail sales growth (versus prior year period, excluding foreign currency impact) | +5.9 | % | +8.5 | % | ||||||||||||
Same store sales growth (1): | ||||||||||||||||
U.S. Company-owned stores | +3.9 | % | +2.1 | % | ||||||||||||
U.S. franchise stores | +1.5 | % | +4.1 | % | ||||||||||||
U.S. stores | +1.6 | % | +3.9 | % | ||||||||||||
International stores (excluding foreign currency impact) | +1.5 | % | +1.8 | % | ||||||||||||
Store counts (at end of period): | ||||||||||||||||
U.S. Company-owned stores | 345 | 392 | ||||||||||||||
U.S. franchise stores | 5,811 | 5,511 | ||||||||||||||
U.S. stores | 6,156 | 5,903 | ||||||||||||||
International stores | 10,933 | 10,211 | ||||||||||||||
Total stores (2) | 17,089 | 16,114 | ||||||||||||||
Income statement data: | ||||||||||||||||
Total revenues | $ | 873.1 | 100.0 | % | $ | 836.0 | 100.0 | % | ||||||||
Cost of sales | 532.9 | 61.0 | % | 513.7 | 61.4 | % | ||||||||||
General and administrative | 88.5 | 10.2 | % | 89.7 | 10.7 | % | ||||||||||
U.S. franchise advertising | 95.8 | 11.0 | % | 89.1 | 10.7 | % | ||||||||||
Income from operations | 155.8 | 17.8 | % | 143.5 | 17.2 | % | ||||||||||
Interest expense, net | (38.5 | ) | (4.4 | )% | (34.4 | ) | (4.1 | )% | ||||||||
Income before provision for income taxes | 117.3 | 13.4 | % | 109.1 | 13.1 | % | ||||||||||
(Benefit) provision for income taxes | (4.3 | ) | (0.5 | )% | 16.5 | 2.0 | % | |||||||||
Net income | $ | 121.6 | 13.9 | % | $ | 92.7 | 11.1 | % | ||||||||
(1) |
(2) | Temporary store closures due to COVID-19 in the |
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 | 11.5 | % | $ | 118.5 | 15.1 | % | $ | 323.0 | 13.1 | % | $ | 358.5 | 15.3 | % | ||||||||||||||||
U.S. franchise royalties and fees | 97.0 | 11.8 | % | 89.4 | 11.4 | % | 289.3 | 11.7 | % | 266.3 | 11.3 | % | ||||||||||||||||||||
Supply chain | 485.1 | 59.1 | % | 445.1 | 56.6 | % | 1,424.8 | 57.8 | % | 1,326.1 | 56.4 | % | ||||||||||||||||||||
International franchise royalties and fees | 54.6 | 6.7 | % | 50.4 | 6.4 | % | 164.1 | 6.6 | % | 154.2 | 6.6 | % | ||||||||||||||||||||
U.S. franchise advertising | 89.5 | 10.9 | % | 82.5 | 10.5 | % | 267.1 | 10.8 | % | 245.6 | 10.4 | % | ||||||||||||||||||||
Total revenues | $ | 820.8 | 100.0 | % | $ | 786.0 | 100.0 | % | $ | 2,468.4 | 100.0 | % | $ | 2,350.7 | 100.0 | % | ||||||||||||||||
First Quarter | First Quarter | |||||||||||||||
of 2020 | of 2019 | |||||||||||||||
U.S. Company-owned stores | $ | 102.3 | 11.7 | % | $ | 123.5 | 14.8 | % | ||||||||
U.S. franchise royalties and fees | 104.7 | 12.0 | % | 96.7 | 11.6 | % | ||||||||||
Supply chain | 512.7 | 58.7 | % | 472.1 | 56.4 | % | ||||||||||
International franchise royalties and fees | 57.5 | 6.6 | % | 54.6 | 6.5 | % | ||||||||||
U.S. franchise advertising | 95.8 | 11.0 | % | 89.1 | 10.7 | % | ||||||||||
Total revenues | $ | 873.1 | 100.0 | % | $ | 836.0 | 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 | % | ||||||||||||||||
First Quarter | First Quarter | |||||||||||||||
of 2020 | of 2019 | |||||||||||||||
U.S. Company-owned stores | $ | 102.3 | 33.8 | % | $ | 123.5 | 39.9 | % | ||||||||
U.S. franchise royalties and fees | 104.7 | 34.6 | % | 96.7 | 31.3 | % | ||||||||||
U.S. franchise advertising | 95.8 | 31.6 | % | 89.1 | 28.8 | % | ||||||||||
U.S. stores | $ | 302.9 | 100.0 | % | $ | 309.3 | 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 | % | ||||||||||||||||
Third Quarter | Third Quarter | Three Fiscal | Three Fiscal | |||||||||||||||||||||||||||||
of 2019 | of 2018 | Quarters of 2019 | Quarters of 2018 | |||||||||||||||||||||||||||||
Consolidated revenues | $ | 820.8 | 100.0 | % | $ | 786.0 | 100.0 | % | $ | 2,468.4 | 100.0 | % | $ | 2,350.7 | 100.0 | % | ||||||||||||||||
Consolidated cost of sales | 504.6 | 61.5 | % | 490.7 | 62.4 | % | 1,513.2 | 61.3 | % | 1,462.0 | 62.2 | % | ||||||||||||||||||||
Consolidated operating margin | $ | 316.3 | 38.5 | % | $ | 295.3 | 37.6 | % | $ | 955.2 | 38.7 | % | $ | 888.7 | 37.8 | % | ||||||||||||||||
First Quarter | First Quarter | |||||||||||||||
of 2020 | of 2019 | |||||||||||||||
Consolidated revenues | $ | 873.1 | 100.0 | % | $ | 836.0 | 100.0 | % | ||||||||
Consolidated cost of sales | 532.9 | 61.0 | % | 513.7 | 61.4 | % | ||||||||||
Consolidated operating margin | $ | 340.2 | 39.0 | % | $ | 322.3 | 38.6 | % | ||||||||
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 | % | ||||||||||||||||
First Quarter | First Quarter | |||||||||||||||
of 2020 | of 2019 | |||||||||||||||
Revenues | $ | 102.3 | 100.0 | % | $ | 123.5 | 100.0 | % | ||||||||
Cost of sales | 79.4 | 77.6 | % | 95.5 | 77.4 | % | ||||||||||
Store operating margin | $ | 22.9 | 22.4 | % | $ | 27.9 | 22.6 | % | ||||||||
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 | % | ||||||||||||||||
First Quarter | First Quarter | |||||||||||||||
of 2020 | of 2019 | |||||||||||||||
Revenues | $ | 512.7 | 100.0 | % | $ | 472.1 | 100.0 | % | ||||||||
Cost of sales | 453.6 | 88.5 | % | 418.1 | 88.6 | % | ||||||||||
Supply chain operating margin | $ | 59.1 | 11.5 | % | $ | 54.0 | 11.4 | % | ||||||||
(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 | ||||
(In millions) | First Quarter of 2020 | First Quarter of 2019 | ||||||
Cash Flows Provided By (Used In) | ||||||||
Net cash provided by operating activities | $ | 95.4 | $ | 97.0 | ||||
Net cash used in investing activities | (17.9 | ) | (12.0 | ) | ||||
Net cash used in financing activities | (82.1 | ) | (55.1 | ) | ||||
Exchange rate changes | (1.0 | ) | 0.1 | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | $ | (5.6 | ) | $ | 30.0 | |||
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 | ||||||||||
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 #1 (December 30, 2019 to January 26, 2020) | 272,092 | $ | 293.62 | 271,064 | $ | 326,552 | ||||||||||
Period #2 (January 27, 2020 to February 23, 2020) | 2,093 | 272.41 | — | 326,552 | ||||||||||||
Period #3 (February 24, 2020 to March 22, 2020) | 2,763 | 342.55 | — | 326,552 | ||||||||||||
Total | 276,948 | $ | 293.95 | 271,064 | $ | 326,552 | ||||||||||
(1) |
(2) | As |
Exhibit Number | Description | |||
10.1 | ||||
31.1 | ||||
31.2 | ||||
32.1 | ||||
32.2 | ||||
101.INS | XBRL Instance Document – | |||
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 |
DOMINO’S PIZZA, INC. (Registrant) | ||||||
Date: | /s/ Jeffrey D. Lawrence | |||||
Jeffrey D. Lawrence | ||||||
Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) |