☒ | 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 | DPZ | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
☐ | ||||||
Page No. | ||||||||||
PART I. | ||||||||||
Item 1. | 3 | |||||||||
3 | ||||||||||
4 | ||||||||||
5 | ||||||||||
6 | ||||||||||
7 | ||||||||||
Item 2. | 16 | |||||||||
Item 3. | ||||||||||
Item 4. | ||||||||||
PART II. | OTHER INFORMATION | |||||||||
Item 1. | ||||||||||
Item 1A. | ||||||||||
Item 2. | ||||||||||
Item 3. | ||||||||||
Item 4. | ||||||||||
Item 5. | ||||||||||
Item 6. | ||||||||||
(In thousands) | June 14, 2020 | December 29, 2019 (1) | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 247,952 | $ | 190,615 | ||||
Restricted cash and cash equivalents | 238,233 | 209,269 | ||||||
Accounts receivable, net | 232,114 | 210,260 | ||||||
Inventories | 66,850 | 52,955 | ||||||
Prepaid expenses and other | 28,873 | 19,129 | ||||||
Advertising fund assets, restricted | 113,087 | 105,389 | ||||||
Total current assets | 927,109 | 787,617 | ||||||
Property, plant and equipment: | ||||||||
Land and buildings | 63,644 | 44,845 | ||||||
Leasehold and other improvements | 170,685 | 164,071 | ||||||
Equipment | 261,655 | 243,708 | ||||||
Construction in progress | 28,890 | 42,705 | ||||||
524,874 | 495,329 | |||||||
Accumulated depreciation and amortization | (267,490 | ) | (252,448 | ) | ||||
Property, plant and equipment, net | 257,384 | 242,881 | ||||||
Other assets: | ||||||||
Operating lease right-of-use assets | 227,114 | 228,785 | ||||||
Goodwill | 15,061 | 15,093 | ||||||
Capitalized software, net | 77,289 | 73,140 | ||||||
Other assets | 69,517 | 24,503 | ||||||
Deferred income taxes | 8,214 | 10,073 | ||||||
Total other assets | 397,195 | 351,594 | ||||||
Total assets | $ | 1,581,688 | $ | 1,382,092 | ||||
Liabilities and stockholders’ deficit | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 42,999 | $ | 43,394 | ||||
Accounts payable | 102,896 | 111,101 | ||||||
Operating lease liabilities | 36,883 | 33,318 | ||||||
Insurance reserves | 23,495 | 23,735 | ||||||
Dividends payable | 31,344 | 471 | ||||||
Advertising fund liabilities | 108,859 | 101,921 | ||||||
Other accrued liabilities | 113,392 | 139,891 | ||||||
Total current liabilities | 459,868 | 453,831 | ||||||
Long-term liabilities: | ||||||||
Long-term debt, less current portion | 4,128,576 | 4,071,055 | ||||||
Operating lease liabilities | 198,868 | 202,731 | ||||||
Insurance reserves | 37,185 | 34,675 | ||||||
Other accrued liabilities | 40,097 | 35,559 | ||||||
Total long-term liabilities | 4,404,726 | 4,344,020 | ||||||
Stockholders’ deficit: | ||||||||
Common stock | 393 | 389 | ||||||
Additional paid-in capital | 32,251 | 243 | ||||||
Retained deficit | (3,311,015 | ) | (3,412,649 | ) | ||||
Accumulated other comprehensive loss | (4,535 | ) | (3,742 | ) | ||||
Total stockholders’ deficit | (3,282,906 | ) | (3,415,759 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 1,581,688 | $ | 1,382,092 | ||||
(In thousands) | June 20, 2021 | January 3, 2021 (1) | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 292,095 | $ | 168,821 | ||||
Restricted cash and cash equivalents | 184,695 | 217,453 | ||||||
Accounts receivable, net | 235,954 | 244,560 | ||||||
Inventories | 59,182 | 66,683 | ||||||
Prepaid expenses and other | 43,785 | 24,169 | ||||||
Advertising fund assets, restricted | 165,139 | 147,698 | ||||||
Total current assets | 980,850 | 869,384 | ||||||
Property, plant and equipment: | ||||||||
Land and buildings | 93,801 | 88,063 | ||||||
Leasehold and other improvements | 189,094 | 186,456 | ||||||
Equipment | 305,491 | 292,456 | ||||||
Construction in progress | 9,650 | 13,014 | ||||||
598,036 | 579,989 | |||||||
Accumulated depreciation and amortization | (302,504 | ) | (282,625 | ) | ||||
Property, plant and equipment, net | 295,532 | 297,364 | ||||||
Other assets: | ||||||||
Operating lease right-of-use | 220,845 | 228,268 | ||||||
Goodwill | 15,034 | 15,061 | ||||||
Capitalized software, net | 88,733 | 81,306 | ||||||
Investments (Note 6) | 82,500 | 40,000 | ||||||
Other assets | 36,636 | 33,881 | ||||||
Deferred income taxes | 1,663 | 1,904 | ||||||
Total other assets | 445,411 | 400,420 | ||||||
Total assets | $ | 1,721,793 | $ | 1,567,168 | ||||
Liabilities and stockholders’ deficit | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 54,769 | $ | 2,855 | ||||
Accounts payable | 104,515 | 94,499 | ||||||
Operating lease liabilities | 36,542 | 35,861 | ||||||
Insurance reserves | 27,463 | 26,377 | ||||||
Dividends payable | 35,452 | 729 | ||||||
Advertising fund liabilities | 157,513 | 141,175 | ||||||
Other accrued liabilities | 138,100 | 169,323 | ||||||
Total current liabilities | 554,354 | 470,819 | ||||||
Long-term liabilities: | ||||||||
Long-term debt, less current portion | 5,026,765 | 4,116,018 | ||||||
Operating lease liabilities | 195,926 | 202,268 | ||||||
Insurance reserves | 40,895 | 37,125 | ||||||
Other accrued liabilities | 35,996 | 35,244 | ||||||
Deferred income taxes | 8,427 | 6,099 | ||||||
Total long-term liabilities | 5,308,009 | 4,396,754 | ||||||
Stockholders’ deficit: | ||||||||
Common stock | 369 | 389 | ||||||
Additional paid-in capital | 7,771 | 5,122 | ||||||
Retained deficit | (4,146,702 | ) | (3,303,492 | ) | ||||
Accumulated other comprehensive loss | (2,008 | ) | (2,424 | ) | ||||
Total stockholders’ deficit | (4,140,570 | ) | (3,300,405 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 1,721,793 | $ | 1,567,168 | ||||
(1) | The balance sheet at |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
(In thousands, except per share data) | June 14, 2020 | June 16, 2019 | June 14, 2020 | June 16, 2019 | ||||||||||||
Revenues: | ||||||||||||||||
U.S. Company-owned stores | $ | 114,240 | $ | 105,001 | $ | 216,566 | $ | 228,451 | ||||||||
U.S. franchise royalties and fees | 113,098 | 95,594 | 217,844 | 192,302 | ||||||||||||
Supply chain | 539,141 | 467,577 | 1,051,841 | 939,677 | ||||||||||||
International franchise royalties and fees | 48,104 | 54,975 | 105,600 | 109,559 | ||||||||||||
U.S. franchise advertising | 105,440 | 88,500 | 201,274 | 177,621 | ||||||||||||
Total revenues | 920,023 | 811,647 | 1,793,125 | 1,647,610 | ||||||||||||
Cost of sales: | ||||||||||||||||
U.S. Company-owned stores | 87,831 | 80,366 | 167,219 | 175,906 | ||||||||||||
Supply chain | 475,101 | 414,610 | 928,658 | 832,744 | ||||||||||||
Total cost of sales | 562,932 | 494,976 | 1,095,877 | 1,008,650 | ||||||||||||
Operating margin | 357,091 | 316,671 | 697,248 | 638,960 | ||||||||||||
General and administrative | 88,068 | 89,248 | 176,557 | 178,912 | ||||||||||||
U.S. franchise advertising | 105,440 | 88,500 | 201,274 | 177,621 | ||||||||||||
Income from operations | 163,583 | 138,923 | 319,417 | 282,427 | ||||||||||||
Interest income | 640 | 922 | 1,572 | 1,615 | ||||||||||||
Interest expense | (39,727 | ) | (33,866 | ) | (79,197 | ) | (68,920 | ) | ||||||||
Income before provision for income taxes | 124,496 | 105,979 | 241,792 | 215,122 | ||||||||||||
Provision for income taxes | 5,828 | 13,620 | 1,522 | 30,113 | ||||||||||||
Net income | $ | 118,668 | $ | 92,359 | $ | 240,270 | $ | 185,009 | ||||||||
Earnings per share: | ||||||||||||||||
Common stock - basic | $ | 3.04 | $ | 2.25 | $ | 6.18 | $ | 4.52 | ||||||||
Common stock - diluted | 2.99 | 2.19 | 6.05 | 4.38 |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
(In thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues: | ||||||||||||||||
U.S. Company-owned stores | $ | 116,589 | $ | 114,240 | $ | 229,333 | $ | 216,566 | ||||||||
U.S. franchise royalties and fees | 126,836 | 113,098 | 251,322 | 217,844 | ||||||||||||
Supply chain | 602,962 | 539,141 | 1,171,300 | 1,051,841 | ||||||||||||
International franchise royalties and fees | 69,745 | 48,104 | 136,515 | 105,600 | ||||||||||||
U.S. franchise advertising | 116,340 | 105,440 | 227,700 | 201,274 | ||||||||||||
Total revenues | 1,032,472 | 920,023 | 2,016,170 | 1,793,125 | ||||||||||||
Cost of sales: | ||||||||||||||||
U.S. Company-owned stores | 88,019 | 87,831 | 173,761 | 167,219 | ||||||||||||
Supply chain | 536,763 | 475,101 | 1,045,568 | 928,658 | ||||||||||||
Total cost of sales | 624,782 | 562,932 | 1,219,329 | 1,095,877 | ||||||||||||
Operating margin | 407,690 | 357,091 | 796,841 | 697,248 | ||||||||||||
General and administrative | 100,448 | 88,068 | 191,701 | 176,557 | ||||||||||||
U.S. franchise advertising | 116,340 | 105,440 | 227,700 | 201,274 | ||||||||||||
Income from operations | 190,902 | 163,583 | 377,440 | 319,417 | ||||||||||||
Other income | — | — | 2,500 | — | ||||||||||||
Interest income | 68 | 640 | 90 | 1,572 | ||||||||||||
Interest expense | (45,877 | ) | (39,727 | ) | (85,299 | ) | (79,197 | ) | ||||||||
Income before provision for income taxes | 145,093 | 124,496 | 294,731 | 241,792 | ||||||||||||
Provision for income taxes | 28,474 | 5,828 | 60,351 | 1,522 | ||||||||||||
Net income | $ | 116,619 | $ | 118,668 | $ | 234,380 | $ | 240,270 | ||||||||
Earnings per share: | ||||||||||||||||
Common stock - basic | $ | 3.10 | $ | 3.04 | $ | 6.14 | $ | 6.18 | ||||||||
Common stock - diluted | 3.06 | 2.99 | 6.06 | 6.05 |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
(In thousands) | June 14, 2020 | June 16, 2019 | June 14, 2020 | June 16, 2019 | ||||||||||||
Net income | $ | 118,668 | $ | 92,359 | $ | 240,270 | $ | 185,009 | ||||||||
Currency translation adjustment | 1,533 | (16 | ) | (793 | ) | 221 | ||||||||||
Comprehensive income | $ | 120,201 | $ | 92,343 | $ | 239,477 | $ | 185,230 | ||||||||
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 20, | June 14, | June 20, | June 14, | |||||||||||||
(In thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income | $ | 116,619 | $ | 118,668 | $ | 234,380 | $ | 240,270 | ||||||||
Currency translation adjustment | 230 | 1,533 | 416 | (793 | ) | |||||||||||
Comprehensive income | $ | 116,849 | $ | 120,201 | $ | 234,796 | $ | 239,477 | ||||||||
Two Fiscal Quarters Ended | ||||||||
(In thousands) | June 14, 2020 | June 16, 2019 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 240,270 | $ | 185,009 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 28,789 | 27,850 | ||||||
Loss on sale/disposal of assets | 544 | 2,829 | ||||||
Amortization of debt issuance costs | 2,575 | 2,198 | ||||||
Provision for deferred income taxes | 1,510 | 2,276 | ||||||
Non-cash compensation expense | 10,029 | 8,589 | ||||||
Excess tax benefits from equity-based compensation | (53,440 | ) | (18,446 | ) | ||||
Provision for losses on accounts and notes receivable | 1,592 | 550 | ||||||
Changes in operating assets and liabilities | (19,421 | ) | (10,713 | ) | ||||
Changes in advertising fund assets and liabilities, restricted | (620 | ) | 1,411 | |||||
Net cash provided by operating activities | 211,828 | 201,553 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (33,732 | ) | (25,708 | ) | ||||
Purchase of investments (Note 9) | (40,000 | ) | — | |||||
Proceeds from sale of assets | 6 | 8,161 | ||||||
Maturities of advertising fund investments, restricted | — | 15,152 | ||||||
Other | (485 | ) | (132 | ) | ||||
Net cash used in investing activities | (74,211 | ) | (2,527 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | 158,000 | — | ||||||
Repayments of long-term debt and finance lease obligations | (122,040 | ) | (82,886 | ) | ||||
Proceeds from exercise of stock options | 24,801 | 9,290 | ||||||
Purchases of common stock | (79,590 | ) | (11,453 | ) | ||||
Tax payments for restricted stock upon vesting | (1,827 | ) | (2,567 | ) | ||||
Payments of common stock dividends and equivalents | (30,266 | ) | (26,680 | ) | ||||
Net cash used in financing activities | (50,922 | ) | (114,296 | ) | ||||
Effect of exchange rate changes on cash | (253 | ) | 111 | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | 86,442 | 84,841 | ||||||
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 | 247,952 | 108,259 | ||||||
Restricted cash and cash equivalents, end of period | 238,233 | 152,713 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 84,181 | 61,288 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ | 570,366 | $ | 322,260 | ||||
Two Fiscal Quarters Ended | ||||||||
June 20, | June 14, | |||||||
(In thousands) | 2021 | 2020 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 234,380 | $ | 240,270 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 33,641 | 28,789 | ||||||
Loss on sale/disposal of assets | 456 | 544 | ||||||
Amortization of debt issuance costs | 4,438 | 2,575 | ||||||
Provision for deferred income taxes | 2,561 | 1,510 | ||||||
Non-cash equity-based compensation expense | 13,500 | 10,029 | ||||||
Excess tax benefits from equity-based compensation | (4,264 | ) | (53,440 | ) | ||||
Provision for losses on accounts and notes receivable | 296 | 1,592 | ||||||
Unrealized gain on investments | (2,500 | ) | — | |||||
Changes in operating assets and liabilities | (17,098 | ) | (19,421 | ) | ||||
Changes in advertising fund assets and liabilities, restricted | 30,005 | (620 | ) | |||||
Net cash provided by operating activities | 295,415 | 211,828 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (33,163 | ) | (33,732 | ) | ||||
Purchase of investments (Note 6) | (40,000 | ) | (40,000 | ) | ||||
Other | 293 | (479 | ) | |||||
Net cash used in investing activities | (72,870 | ) | (74,211 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | 1,850,000 | 158,000 | ||||||
Repayments of long-term debt and finance lease obligations | (882,547 | ) | (122,040 | ) | ||||
Proceeds from exercise of stock options | 9,025 | 24,801 | ||||||
Purchases of common stock | (1,025,000 | ) | (79,590 | ) | ||||
Tax payments for restricted stock upon vesting | (1,087 | ) | (1,827 | ) | ||||
Payments of common stock dividends and equivalents | (36,432 | ) | (30,266 | ) | ||||
Cash paid for financing costs | (14,938 | ) | — | |||||
Other | (244 | ) | — | |||||
Net cash used in financing activities | (101,223 | ) | (50,922 | ) | ||||
Effect of exchange rate changes on cash | 302 | (253 | ) | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | 121,624 | 86,442 | ||||||
Cash and cash equivalents, beginning of period | 168,821 | 190,615 | ||||||
Restricted cash and cash equivalents, beginning of period | 217,453 | 209,269 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 115,872 | 84,040 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 502,146 | 483,924 | ||||||
Cash and cash equivalents, end of period | 292,095 | 247,952 | ||||||
Restricted cash and cash equivalents, end of period | 184,695 | 238,233 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 146,980 | 84,181 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ | 623,770 | $ | 570,366 | ||||
Fiscal Quarters Ended June 14, 2020 and June 16, 2019 | ||||||||||||||||||||||||
U.S. | Supply | International | Intersegment | |||||||||||||||||||||
Stores | Chain | Franchise | Revenues | Other | Total | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
2020 | $ | 332,778 | $ | 570,104 | $ | 48,104 | $ | (30,963 | ) | $ | — | $ | 920,023 | |||||||||||
2019 | 289,095 | 495,989 | 54,975 | (28,412 | ) | — | 811,647 | |||||||||||||||||
Income from operations | ||||||||||||||||||||||||
2020 | $ | 100,171 | $ | 52,461 | $ | 36,372 | N/A | $ | (25,421 | ) | $ | 163,583 | ||||||||||||
2019 | 77,050 | 41,305 | 41,432 | N/A | (20,864 | ) | 138,923 | |||||||||||||||||
Segment Income | ||||||||||||||||||||||||
2020 | $ | 102,934 | $ | 56,904 | $ | 36,410 | N/A | $ | (12,555 | ) | $ | 183,693 | ||||||||||||
2019 | 82,006 | 45,382 | 41,491 | N/A | (9,235 | ) | 159,644 |
Fiscal Quarters Ended June 20, 2021 and June 14, 2020 | ||||||||||||||||||||||||
U.S. Stores | Supply Chain | International Franchise | Intersegment Revenues | Other | Total | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
2021 | $ | 359,765 | $ | 635,592 | $ | 69,745 | $ | (32,630 | ) | $ | — | $ | 1,032,472 | |||||||||||
2020 | 332,778 | 570,104 | 48,104 | (30,963 | ) | — | 920,023 | |||||||||||||||||
Segment Income | ||||||||||||||||||||||||
2021 | $ | 111,847 | $ | 58,593 | $ | 56,365 | N/A | $ | (9,627 | ) | $ | 217,178 | ||||||||||||
2020 | 102,934 | 56,904 | 36,410 | N/A | (12,555 | ) | 183,693 |
Two Fiscal Quarters Ended June 20, 2021 and June 14, 2020 | ||||||||||||||||||||||||
U.S. Stores | Supply Chain | International Franchise | Intersegment Revenues | Other | Total | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
2021 | $ | 708,355 | $ | 1,234,769 | $ | 136,515 | $ | (63,469 | ) | $ | — | $ | 2,016,170 | |||||||||||
2020 | 635,684 | 1,111,743 | 105,600 | (59,902 | ) | — | 1,793,125 | |||||||||||||||||
Segment Income | ||||||||||||||||||||||||
2021 | $ | 219,283 | $ | 111,145 | $ | 110,833 | N/A | $ | (15,715 | ) | $ | 425,546 | ||||||||||||
2020 | 191,211 | 108,341 | 79,914 | N/A | (20,687 | ) | 358,779 |
Two Fiscal Quarters Ended June 14, 2020 and June 16, 2019 | ||||||||||||||||||||||||
U.S. | Supply | International | Intersegment | |||||||||||||||||||||
Stores | Chain | Franchise | Revenues | Other | Total | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
2020 | $ | 635,684 | $ | 1,111,743 | $ | 105,600 | $ | (59,902 | ) | $ | — | $ | 1,793,125 | |||||||||||
2019 | 598,374 | 1,001,670 | 109,559 | (61,993 | ) | — | 1,647,610 | |||||||||||||||||
Income from operations | ||||||||||||||||||||||||
2020 | $ | 185,581 | $ | 99,837 | $ | 79,832 | N/A | $ | (45,833 | ) | $ | 319,417 | ||||||||||||
2019 | 157,664 | 83,327 | 84,186 | N/A | (42,750 | ) | 282,427 | |||||||||||||||||
Segment Income | ||||||||||||||||||||||||
2020 | $ | 191,211 | $ | 108,341 | $ | 79,914 | N/A | $ | (20,687 | ) | $ | 358,779 | ||||||||||||
2019 | 165,604 | 91,429 | 84,290 | N/A | (19,628 | ) | 321,695 |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 14, | June 16, | June 14, | June 16, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Total Segment Income | $ | 183,693 | $ | 159,644 | $ | 358,779 | $ | 321,695 | ||||||||
Depreciation and amortization | (14,757 | ) | (14,060 | ) | (28,789 | ) | (27,850 | ) | ||||||||
Loss on sale/disposal of assets | (238 | ) | (2,680 | ) | (544 | ) | (2,829 | ) | ||||||||
Non-cash compensation expense | (5,115 | ) | (3,981 | ) | (10,029 | ) | (8,589 | ) | ||||||||
Income from operations | 163,583 | 138,923 | 319,417 | 282,427 | ||||||||||||
Interest income | 640 | 922 | 1,572 | 1,615 | ||||||||||||
Interest expense | (39,727 | ) | (33,866 | ) | (79,197 | ) | (68,920 | ) | ||||||||
Income before provision for income taxes | $ | 124,496 | $ | 105,979 | $ | 241,792 | $ | 215,122 | ||||||||
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 20, 2021 | June 14, 2020 | June 20, 2021 | June 14 ,202 0 | |||||||||||||
Total Segment Income | $ | 217,178 | $ | 183,693 | $ | 425,546 | $ | 358,779 | ||||||||
Depreciation and amortization | (17,176 | ) | (14,757 | ) | (33,641 | ) | (28,789 | ) | ||||||||
Loss on sale/disposal of assets | (295 | ) | (238 | ) | (456 | ) | (544 | ) | ||||||||
Non-cash equity-based compensation expense | (8,296 | ) | (5,115 | ) | (13,500 | ) | (10,029 | ) | ||||||||
Recapitalization-related expenses | (509 | ) | — | (509 | ) | — | ||||||||||
Income from operations | 190,902 | 163,583 | 377,440 | 319,417 | ||||||||||||
Other income | — | — | 2,500 | — | ||||||||||||
Interest income | 68 | 640 | 90 | 1,572 | ||||||||||||
Interest expense | (45,877 | ) | (39,727 | ) | (85,299 | ) | (79,197 | ) | ||||||||
Income before provision for income taxes | $ | 145,093 | $ | 124,496 | $ | 294,731 | $ | 241,792 | ||||||||
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 14, | June 16, | June 14, | June 16, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income available to common stockholders - basic and diluted | $ | 118,668 | $ | 92,359 | $ | 240,270 | $ | 185,009 | ||||||||
Basic weighted average number of shares | 39,058,292 | 41,023,269 | 38,862,108 | 40,944,400 | ||||||||||||
Earnings per share – basic | $ | 3.04 | $ | 2.25 | $ | 6.18 | $ | 4.52 | ||||||||
Diluted weighted average number of shares | 39,746,479 | 42,236,507 | 39,688,663 | 42,219,649 | ||||||||||||
Earnings per share – diluted | $ | 2.99 | $ | 2.19 | $ | 6.05 | $ | 4.38 |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 20, 2021 | June 14, 2020 | June 20, 2021 | June 14, 2020 | |||||||||||||
Net income available to common stockholders - basic and diluted | $ | 116,619 | $ | 118,668 | $ | 234,380 | $ | 240,270 | ||||||||
Basic weighted average number of shares | 37,590,369 | 39,058,292 | 38,145,297 | 38,862,108 | ||||||||||||
Earnings per share – basic | $ | 3.10 | $ | 3.04 | $ | 6.14 | $ | 6.18 | ||||||||
Diluted weighted average number of shares | 38,122,515 | 39,746,479 | 38,665,325 | 39,688,663 | ||||||||||||
Earnings per share – diluted | $ | 3.06 | $ | 2.99 | $ | 6.06 | $ | 6.05 |
Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Loss | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance at March 28, 2021 | 38,818,197 | $ | 388 | $ | 6,612 | $ | (3,240,842 | ) | $ | (2,238 | ) | |||||||||
Net income | — | — | — | 116,619 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($0.94 per share) | — | — | — | (34,680 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 837 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (110 | ) | — | (43 | ) | — | — | |||||||||||||
Purchases of common stock | (2,012,596 | ) | (20 | ) | (12,181 | ) | (987,799 | ) | — | |||||||||||
Exercise of stock options | 47,243 | 1 | 5,331 | — | — | |||||||||||||||
Non-cash equity-based compensation expense | — | — | 8,296 | — | — | |||||||||||||||
Other | — | — | (244 | ) | — | — | ||||||||||||||
Currency translation adjustment | — | — | — | — | 230 | |||||||||||||||
Balance at June 20, 2021 | 36,853,571 | $ | 369 | $ | 7,771 | $ | (4,146,702 | ) | $ | (2,008 | ) | |||||||||
Accumulated | ||||||||||||||||||||
Common Stock | Additional | Other | ||||||||||||||||||
Paid-in | Retained | Comprehensive | ||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at January 3, 2021 | 38,868,350 | $ | 389 | $ | 5,122 | $ | (3,303,492 | ) | $ | (2,424 | ) | |||||||||
Net income | — | — | — | 234,380 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($1.88 per share) | — | — | — | (71,155 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | (1,918 | ) | — | — | — | — | ||||||||||||||
Tax payments for restricted stock upon vesting | (2,901 | ) | — | (1,087 | ) | — | — | |||||||||||||
Purchases of common stock | (2,078,466 | ) | (21 | ) | (18,544 | ) | (1,006,435 | ) | — | |||||||||||
Exercise of stock options | 68,506 | 1 | 9,024 | — | — | |||||||||||||||
Non-cash equity-based compensation expense | — | — | 13,500 | — | — | |||||||||||||||
Other | — | — | (244 | ) | — | — | ||||||||||||||
Currency translation adjustment | — | — | — | — | 416 | |||||||||||||||
Balance at June 20, 2021 | 36,853,571 | $ | 369 | $ | 7,771 | $ | (4,146,702 | ) | $ | (2,008 | ) | |||||||||
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | |||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at March 22, 2020 | 39,039,599 | $ | 390 | $ | 12,474 | $ | (3,398,986 | ) | $ | (6,068 | ) | |||||||||
Net income | — | — | — | 118,668 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($0.78 per share) | — | — | — | (30,697 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 4,068 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (91 | ) | — | (31 | ) | — | — | |||||||||||||
Exercise of stock options | 303,637 | 3 | 14,693 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 5,115 | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | 1,533 | |||||||||||||||
Balance at June 14, 2020 | 39,347,213 | $ | 393 | $ | 32,251 | $ | (3,311,015 | ) | $ | (4,535 | ) | |||||||||
Accumulated | ||||||||||||||||||||
Common Stock | Additional | Other | ||||||||||||||||||
Paid-in | Retained | Comprehensive | ||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | ||||||||||||||||
Balance at March 22, 2020 | 39,039,599 | $ | 390 | $ | 12,474 | $ | (3,398,986 | ) | $ | (6,068 | ) | |||||||||
Net income | — | — | — | 118,668 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($0.78 per share) | — | — | — | (30,697 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 4,068 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (91 | ) | — | (31 | ) | — | — | |||||||||||||
Exercise of stock options | 303,637 | 3 | 14,693 | — | — | |||||||||||||||
Non-cash equity-based compensation expense | — | — | 5,115 | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | 1,533 | |||||||||||||||
Balance at June 14, 2020 | 39,347,213 | $ | 393 | $ | 32,251 | $ | (3,311,015 | ) | $ | (4,535 | ) | |||||||||
Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive | |||||||||||||||||
Shares | Amount | Loss | ||||||||||||||||||
Balance at December 29, 2019 | 38,934,009 | $ | 389 | $ | 243 | $ | (3,412,649 | ) | $ | (3,742 | ) | |||||||||
Net income | — | — | — | 240,270 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($1.56 per share) | — | — | — | (61,139 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 5,713 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (6,020 | ) | — | (1,827 | ) | — | — | |||||||||||||
Purchases of common stock | (271,064 | ) | (3 | ) | (988 | ) | (78,599 | ) | — | |||||||||||
Exercise of stock options | 684,575 | 7 | 24,794 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 10,029 | — | — | |||||||||||||||
Adoption of ASC 326 (Note 10 ) | — | — | — | 1,102 | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | (793 | ) | ||||||||||||||
Balance at June 14, 2020 | 39,347,213 | $ | 393 | $ | 32,251 | $ | (3,311,015 | ) | $ | (4,535 | ) | |||||||||
Accumulated | ||||||||||||||||||||
Common Stock | Additional | Other | ||||||||||||||||||
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 | — | — | — | 240,270 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($1.56 per share) | — | — | — | (61,139 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 5,713 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (6,020 | ) | — | (1,827 | ) | — | — | |||||||||||||
Purchases of common stock | (271,064 | ) | (3 | ) | (988 | ) | (78,599 | ) | — | |||||||||||
Exercise of stock options | 684,575 | 7 | 24,794 | — | — | |||||||||||||||
Non-cash equity-based compensation expense | — | — | 10,029 | — | — | |||||||||||||||
Adoption of credit losses standard | — | — | — | 1,102 | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | (793 | ) | ||||||||||||||
Balance at June 14, 2020 | 39,347,213 | $ | 393 | $ | 32,251 | $ | (3,311,015 | ) | $ | (4,535 | ) | |||||||||
Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive | |||||||||||||||||
Shares | Amount | Loss | ||||||||||||||||||
Balance at March 24, 2019 | 41,083,890 | $ | 411 | $ | 5,464 | $ | (2,976,848 | ) | $ | (4,192 | ) | |||||||||
Net income | — | — | — | 92,359 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($0.65 per share) | — | — | — | (26,789 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | (3,079 | ) | — | — | — | — | ||||||||||||||
Tax payments for restricted stock upon vesting | (377 | ) | — | (100 | ) | — | — | |||||||||||||
Purchases of common stock | (12,295 | ) | (1 | ) | (3,308 | ) | — | — | ||||||||||||
Exercise of stock options | 164,219 | 2 | 4,751 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 3,981 | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | (16 | ) | ||||||||||||||
Balance at June 16, 2019 | 41,232,358 | $ | 412 | $ | 10,788 | $ | (2,911,278 | ) | $ | (4,208 | ) | |||||||||
Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive | |||||||||||||||||
Shares | Amount | Loss | ||||||||||||||||||
Balance at December 30, 2018 | 40,977,561 | $ | 410 | $ | 569 | $ | (3,036,471 | ) | $ | (4,429 | ) | |||||||||
Net income | — | — | — | 185,009 | — | |||||||||||||||
Dividends declared on common stock and equivalents ($1.30 per share) | — | — | — | (53,454 | ) | — | ||||||||||||||
Issuance and cancellation of stock awards, net | 5,161 | — | — | — | — | |||||||||||||||
Tax payments for restricted stock upon vesting | (9,441 | ) | — | (2,567 | ) | — | — | |||||||||||||
Purchases of common stock | (45,844 | ) | (1 | ) | (5,090 | ) | (6,362 | ) | — | |||||||||||
Exercise of stock options | 304,921 | 3 | 9,287 | — | — | |||||||||||||||
Non-cash compensation expense | — | — | 8,589 | — | — | |||||||||||||||
Currency translation adjustment | — | — | — | — | 221 | |||||||||||||||
Balance at June 16, 2019 | 41,232,358 | $ | 412 | $ | 10,788 | $ | (2,911,278 | ) | $ | (4,208 | ) | |||||||||
At June 14, 2020 | ||||||||||||||||
Fair Value Estimated Using | ||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Inputs | Inputs | Inputs | |||||||||||||
Cash equivalents | $ | 223,664 | $ | 223,664 | $ | — | $ | — | ||||||||
Restricted cash equivalents | 167,319 | 167,319 | — | — | ||||||||||||
Investments in marketable securities | 11,278 | 11,278 | — | — | ||||||||||||
Advertising fund cash equivalents, restricted | 71,488 | 71,488 | — | — | ||||||||||||
Investments (Note 9) | 40,000 | — | — | 40,000 |
At June 20, 2021 | ||||||||||||||||
Fair Value Estimated Using | ||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Inputs | Inputs | Inputs | |||||||||||||
Cash equivalents | $ | 261,183 | $ | 261,183 | $ | — | $ | — | ||||||||
Restricted cash equivalents | 117,783 | 117,783 | — | — | ||||||||||||
Investments in marketable securities | 14,195 | 14,195 | — | — | ||||||||||||
Advertising fund cash equivalents, restricted | 129,810 | 129,810 | — | — | ||||||||||||
Investments | 82,500 | — | — | 82,500 |
At January 3, 2021 | ||||||||||||||||
Fair Value Estimated Using | ||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | |||||||||||||
Amount | Inputs | Inputs | Inputs | |||||||||||||
Cash equivalents | $ | 151,502 | $ | 151,502 | $ | — | $ | — | ||||||||
Restricted cash equivalents | 126,595 | 126,595 | — | — | ||||||||||||
Investments in marketable securities | 13,251 | 13,251 | — | — | ||||||||||||
Advertising fund cash equivalents, restricted | 104,197 | 104,197 | — | — | ||||||||||||
Investments | 40,000 | — | — | 40,000 |
Two Fiscal Quarters of 2021 | ||||||||||||||||
Carrying Amount | Carrying Amount | |||||||||||||||
January 3, | Unrealized | June 20, | ||||||||||||||
2021 | Purchases | Gain | 2021 | |||||||||||||
Investments | $ | 40,000 | $ | 40,000 | $ | 2,500 | $ | 82,500 |
At December 29, 2019 | ||||||||||||||||
Fair Value Estimated Using | ||||||||||||||||
Carrying Amount | Level 1 Inputs | Level 2 Inputs | Level 3 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 | — | — |
June 14, 2020 | December 29, 2019 | |||||||||||||||
Principal Amount | Fair Value | Principal Amount | Fair Value | |||||||||||||
2015 Ten-Year Fixed Rate Notes | $ | 770,000 | $ | 813,120 | $ | 774,000 | $ | 804,960 | ||||||||
2017 Five-Year Fixed Rate Notes | 585,000 | 587,340 | 588,000 | 588,588 | ||||||||||||
2017 Ten-Year Fixed Rate Notes | 975,000 | 1,042,275 | 980,000 | 1,017,240 | ||||||||||||
2017 Five-Year Floating Rate Notes | 292,500 | 287,820 | 294,000 | 294,000 | ||||||||||||
2018 7.5-Year Fixed Rate Notes | 417,563 | 441,782 | 419,688 | 431,439 | ||||||||||||
2018 9.25-Year Fixed Rate Notes | 393,000 | 424,047 | 395,000 | 414,355 | ||||||||||||
2019 Ten-Year Fixed Rate Notes | 671,625 | 699,833 | 675,000 | 675,675 |
June 20, 2021 | January 3, 2021 | |||||||||||||||
Principal Amount | Fair Value | Principal Amount | Fair Value | |||||||||||||
2015 Ten-Year Fixed Rate Notes | $ | 764,000 | $ | 802,200 | $ | 766,000 | $ | 809,662 | ||||||||
2017 Five-Year Fixed Rate Notes | — | — | 582,000 | 582,582 | ||||||||||||
2017 Ten-Year Fixed Rate Notes | 967,500 | 1,032,323 | 970,000 | 1,035,960 | ||||||||||||
2017 Five-Year Floating Rate Notes | — | — | 291,000 | 291,000 | ||||||||||||
2018 7.5-Year Fixed Rate Notes | 414,375 | 433,022 | 415,438 | 437,456 | ||||||||||||
2018 9.25-Year Fixed Rate Notes | 390,000 | 422,370 | 391,000 | 422,280 | ||||||||||||
2019 Ten-Year Fixed Rate Notes | 666,563 | 715,222 | 668,250 | 712,355 | ||||||||||||
2021 7.5-Year Fixed Rate Notes | 850,000 | 872,950 | — | — | ||||||||||||
2021 Ten-Year Fixed Rate Notes | 1,000,000 | 1,042,000 | — | — |
Two Fiscal Quarters | ||||||||
June 14, 2020 | June 16, 2019 | |||||||
Deferred franchise fees and deferred development fees at beginning of period | $ | 20,463 | $ | 19,900 | ||||
Revenue recognized during the period | (2,793 | ) | (2,630 | ) | ||||
New deferrals due to cash received and other | 3,092 | 1,807 | ||||||
Deferred franchise fees and deferred development fees at end of period | $ | 20,762 | $ | 19,077 | ||||
Two Fiscal Quarters Ended | ||||||||
June 20, | June 14, | |||||||
2021 | 2020 | |||||||
Deferred franchise fees and deferred development fees at beginning of period | $ | 19,090 | $ | 20,463 | ||||
Revenue recognized during the period | (2,691 | ) | (2,793 | ) | ||||
New deferrals due to cash received and other | 3,805 | 3,092 | ||||||
Deferred franchise fees and deferred development fees at end of period | $ | 20,204 | $ | 20,762 | ||||
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 14, 2020 | June 16, 2019 | June 14, 2020 | June 16, 2019 | |||||||||||||
Operating lease cost | $ | 10,250 | $ | 9,518 | $ | 19,832 | $ | 20,314 | ||||||||
Finance lease cost: | ||||||||||||||||
Amortization of right-of-use assets | 451 | 255 | 700 | 509 | ||||||||||||
Interest on lease liabilities | 897 | 317 | 1,272 | 796 | ||||||||||||
Total finance lease cost | $ | 1,348 | $ | 572 | $ | 1,972 | $ | 1,305 | ||||||||
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 20, 2021 | June 14, 2020 | June 20, 2021 | June 14, 2020 | |||||||||||||
Operating lease cost | $ | 10,326 | $ | 10,250 | $ | 20,750 | $ | 19,832 | ||||||||
Finance lease cost: | ||||||||||||||||
Amortization of right-of-use | 1,003 | 451 | 1,922 | 700 | ||||||||||||
Interest on lease liabilities | 722 | 897 | 1,748 | 1,272 | ||||||||||||
Total finance lease cost | $ | 1,725 | $ | 1,348 | $ | 3,670 | $ | 1,972 | ||||||||
June 14, 2020 | December 29, 2019 | |||||||
Land and buildings | $ | 44,067 | $ | 25,476 | ||||
Accumulated depreciation and amortization | (8,544 | ) | (7,846 | ) | ||||
Finance lease assets, net | $ | 35,523 | $ | 17,630 | ||||
Current portion of long-term debt | $ | 999 | $ | 1,394 | ||||
Long-term debt, less current portion | 36,209 | 18,263 | ||||||
Total principal payable on finance leases | $ | 37,208 | $ | 19,657 | ||||
June 20, 2021 | January 3, 2021 | |||||||
Land and buildings | $ | 73,822 | $ | 68,084 | ||||
Accumulated depreciation and amortization | (11,979 | ) | (10,049 | ) | ||||
Finance lease assets, net | $ | 61,843 | $ | 58,035 | ||||
Current portion of long-term debt | $ | 3,269 | $ | 2,855 | ||||
Long-term debt, less current portion | 61,697 | 57,700 | ||||||
Total principal payable on finance leases | $ | 64,966 | $ | 60,555 | ||||
June 14, 2020 | December 29, 2019 | |||||||||||||||
Operating Leases | Finance Leases | Operating Leases | Finance Leases | |||||||||||||
Weighted average remaining lease term | 7 years | 17 years | 8 years | 14 years | ||||||||||||
Weighted average discount rate | 3.8 | % | 9.1 | % | 3.8 | % | 11.7 | % |
June 20, 2021 | January 3, 2021 | |||||||||||||||
Operating Leases | Finance Leases | Operating Leases | Finance Leases | |||||||||||||
Weighted average remaining lease term | 7 years | 15 years | 7 years | 16 years | ||||||||||||
Weighted average discount rate | 3.7 | % | 6.5 | % | 3.7 | % | 6.8 | % |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 14, 2020 | June 16, 2019 | June 14, 2020 | June 16, 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 10,048 | $ | 9,398 | $ | 20,167 | $ | 20,088 | ||||||||
Operating cash flows from finance leases | 897 | 317 | 1,272 | 796 | ||||||||||||
Financing cash flows from finance leases | 691 | 106 | 1,040 | 261 | ||||||||||||
Right-of-use assets obtained in exchange for new lease obligations: | ||||||||||||||||
Operating leases | 6,596 | 13,391 | 15,578 | 26,368 | ||||||||||||
Finance leases | 18,746 | — | 18,746 | — |
Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
June 20, 2021 | June 14, 2020 | June 20, 2021 | June 14, 2020 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 9,105 | $ | 10,048 | $ | 19,292 | $ | 20,167 | ||||||||
Operating cash flows from finance leases | 722 | 897 | 1,748 | 1,272 | ||||||||||||
Financing cash flows from finance leases | 593 | 691 | 1,297 | 1,040 | ||||||||||||
Right-of-use | ||||||||||||||||
Operating leases | 6,681 | 6,596 | 11,353 | 15,578 | ||||||||||||
Finance leases | 5,261 | 18,746 | 5,660 | 18,746 |
Operating Leases | Finance Leases | |||||||
2020 | $ | 25,756 | $ | 1,823 | ||||
2021 | 42,035 | 4,493 | ||||||
2022 | 39,285 | 4,544 | ||||||
2023 | 33,914 | 4,602 | ||||||
2024 | 32,365 | 4,662 | ||||||
Thereafter | 98,854 | 53,291 | ||||||
Total future minimum rental commitments | 272,209 | 73,415 | ||||||
Less – amounts representing interest | (36,458 | ) | (36,207 | ) | ||||
Total lease liabilities | $ | 235,751 | $ | 37,208 | ||||
Operating Leases | Finance Leases | |||||||
2021 | $ | 26,194 | $ | 3,996 | ||||
2022 | 43,813 | 7,202 | ||||||
2023 | 38,220 | 6,722 | ||||||
2024 | 36,928 | 7,181 | ||||||
2025 | 30,470 | 6,983 | ||||||
Thereafter | 89,142 | 74,290 | ||||||
Total future minimum rental commitments | 264,767 | 106,374 | ||||||
Less – amounts representing interest | (32,299 | ) | (41,408 | ) | ||||
Total lease liabilities | $ | 232,468 | $ | 64,966 | ||||
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 | ) |
Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||
U.S. stores | +7.4 | % | +19.9 | % | +11.1 | % | +12.4 | % | ||||||||
International stores (excluding foreign currency impact) | +29.5 | % | (3.4 | )% | +20.6 | % | +1.8 | % | ||||||||
Total (excluding foreign currency impact) | +17.1 | % | +8.1 | % | +15.6 | % | +7.0 | % |
Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||
U.S. Company-owned stores | (2.6 | )% | +16.9 | % | +1.6 | % | +10.4 | % | ||||||||
U.S. franchise stores | +3.9 | % | +16.0 | % | +8.5 | % | +8.7 | % | ||||||||
U.S. stores | +3.5 | % | +16.1 | % | +8.1 | % | +8.8 | % | ||||||||
International stores (excluding foreign currency impact) | +13.9 | % | +1.3 | % | +12.8 | % | +1.4 | % |
Second Quarter of 2020 | Second Quarter of 2019 | Two Fiscal Quarters of 2020 | Two Fiscal Quarters of 2019 | |||||||||||||||||||||||||||||
Global retail sales growth (versus prior year period, excluding foreign currency impact) | +8.1 | % | +8.4 | % | +7.0 | % | +8.4 | % | ||||||||||||||||||||||||
Same store sales growth (1): | ||||||||||||||||||||||||||||||||
U.S. Company-owned stores | +16.9 | % | +2.1 | % | +10.4 | % | +2.6 | % | ||||||||||||||||||||||||
U.S. franchise stores | +16.0 | % | +3.1 | % | +8.7 | % | +3.5 | % | ||||||||||||||||||||||||
U.S. stores | +16.1 | % | +3.0 | % | +8.8 | % | +3.5 | % | ||||||||||||||||||||||||
International stores (excluding foreign currency impact) | +1.3 | % | +2.4 | % | +1.4 | % | +2.1 | % | ||||||||||||||||||||||||
Store counts (at end of period): | ||||||||||||||||||||||||||||||||
U.S. Company-owned stores | 346 | 333 | ||||||||||||||||||||||||||||||
U.S. franchise stores | 5,849 | 5,612 | ||||||||||||||||||||||||||||||
U.S. stores | 6,195 | 5,945 | ||||||||||||||||||||||||||||||
International stores | 10,978 | 10,369 | ||||||||||||||||||||||||||||||
Total stores (2) | 17,173 | 16,314 | ||||||||||||||||||||||||||||||
Income statement data: | ||||||||||||||||||||||||||||||||
Total revenues | $ | 920.0 | 100.0 | % | $ | 811.6 | 100.0 | % | $ | 1,793.1 | 100.0 | % | $ | 1,647.6 | 100.0 | % | ||||||||||||||||
Cost of sales | 562.9 | 61.2 | % | 495.0 | 61.0 | % | 1,095.9 | 61.1 | % | 1,008.7 | 61.2 | % | ||||||||||||||||||||
General and administrative | 88.1 | 9.5 | % | 89.2 | 11.0 | % | 176.6 | 9.9 | % | 178.9 | 10.9 | % | ||||||||||||||||||||
U.S. franchise advertising | 105.4 | 11.5 | % | 88.5 | 10.9 | % | 201.3 | 11.2 | % | 177.6 | 10.8 | % | ||||||||||||||||||||
Income from operations | 163.6 | 17.8 | % | 138.9 | 17.1 | % | 319.4 | 17.8 | % | 282.4 | 17.1 | % | ||||||||||||||||||||
Interest expense, net | (39.1 | ) | (4.3 | )% | (32.9 | ) | (4.0 | )% | (77.6 | ) | (4.3 | )% | (67.3 | ) | (4.0 | )% | ||||||||||||||||
Income before provision for income taxes | 124.5 | 13.5 | % | 106.0 | 13.1 | % | 241.8 | 13.5 | % | 215.1 | 13.1 | % | ||||||||||||||||||||
Provision for income taxes | 5.8 | 0.6 | % | 13.6 | 1.7 | % | 1.5 | 0.1 | % | 30.1 | 1.9 | % | ||||||||||||||||||||
Net income | $ | 118.7 | 12.9 | % | $ | 92.4 | 11.4 | % | $ | 240.3 | 13.4 | % | $ | 185.0 | 11.2 | % | ||||||||||||||||
U.S. Company- owned Stores | U.S. Franchise Stores | Total U.S. Stores | International Stores | Total | ||||||||||||||||
Store count at March 28, 2021 | 364 | 6,027 | 6,391 | 11,428 | 17,819 | |||||||||||||||
Openings | 2 | 37 | 39 | 217 | 256 | |||||||||||||||
Closings (1) | — | (4 | ) | (4 | ) | (14 | ) | (18 | ) | |||||||||||
Store count at June 20, 2021 | 366 | 6,060 | 6,426 | 11,631 | 18,057 | |||||||||||||||
Second quarter 2021 net store growth | 2 | 33 | 35 | 203 | 238 | |||||||||||||||
Trailing four quarters net store growth | 20 | 211 | 231 | 653 | 884 | |||||||||||||||
(1) |
Temporary store closures are not treated as store closures and affected stores are included in the ending store count. Based on information reported to us by our master franchisees, we estimate that as of June 20, 2021, there were fewer than 175 international stores temporarily closed. |
Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||||||||||||||||||
U.S. Company-owned stores | $ | 116.6 | $ | 114.2 | $ | 229.3 | $ | 216.6 | ||||||||||||||||||||||||
U.S. franchise royalties and fees | 126.8 | 113.1 | 251.3 | 217.8 | ||||||||||||||||||||||||||||
Supply chain | 603.0 | 539.1 | 1,171.3 | 1,051.8 | ||||||||||||||||||||||||||||
International franchise royalties and fees | 69.7 | 48.1 | 136.5 | 105.6 | ||||||||||||||||||||||||||||
U.S. franchise advertising | 116.3 | 105.4 | 227.7 | 201.3 | ||||||||||||||||||||||||||||
Total revenues | 1,032.5 | 100.0 | % | 920.0 | 100.0 | % | 2,016.2 | 100.0 | % | 1,793.1 | 100.0 | % | ||||||||||||||||||||
U.S. Company-owned stores | 88.0 | 87.8 | 173.8 | 167.2 | ||||||||||||||||||||||||||||
Supply chain | 536.8 | 475.1 | 1,045.6 | 928.7 | ||||||||||||||||||||||||||||
Total cost of sales | 624.8 | 60.5 | % | 562.9 | 61.2 | % | 1,219.3 | 60.5 | % | 1,095.9 | 61.1 | % | ||||||||||||||||||||
Operating margin | 407.7 | 39.5 | % | 357.1 | 38.8 | % | 796.8 | 39.5 | % | 697.2 | 38.9 | % | ||||||||||||||||||||
General and administrative | 100.4 | 9.7 | % | 88.1 | 9.5 | % | 191.7 | 9.5 | % | 176.6 | 9.9 | % | ||||||||||||||||||||
U.S. franchise advertising | 116.3 | 11.3 | % | 105.4 | 11.5 | % | 227.7 | 11.3 | % | 201.3 | 11.2 | % | ||||||||||||||||||||
Income from operations | 190.9 | 18.5 | % | 163.6 | 17.8 | % | 377.4 | 18.7 | % | 319.4 | 17.8 | % | ||||||||||||||||||||
Other income | — | 0.0 | % | — | 0.0 | % | 2.5 | 0.1 | % | — | 0.0 | % | ||||||||||||||||||||
Interest expense, net | (45.8 | ) | (4.4 | )% | (39.1 | ) | (4.3 | )% | (85.2 | ) | (4.2 | )% | (77.6 | ) | (4.3 | )% | ||||||||||||||||
Income before provision for income taxes | 145.1 | 14.1 | % | 124.5 | 13.5 | % | 294.7 | 14.6 | % | 241.8 | 13.5 | % | ||||||||||||||||||||
Provision for income taxes | 28.5 | 2.8 | % | 5.8 | 0.6 | % | 60.4 | 3.0 | % | 1.5 | 0.1 | % | ||||||||||||||||||||
Net income | $ | 116.6 | 11.3 | % | $ | 118.7 | 12.9 | % | $ | 234.4 | 11.6 | % | $ | 240.3 | 13.4 | % | ||||||||||||||||
Second Quarter of 2020 | Second Quarter of 2019 | Two Fiscal Quarters of 2020 | Two Fiscal Quarters of 2019 | |||||||||||||||||||||||||||||
U.S. Company-owned stores | $ | 114.2 | 12.4 | % | $ | 105.0 | 12.9 | % | $ | 216.6 | 12.1 | % | $ | 228.5 | 13.9 | % | ||||||||||||||||
U.S. franchise royalties and fees | 113.1 | 12.3 | % | 95.6 | 11.8 | % | 217.8 | 12.1 | % | 192.3 | 11.7 | % | ||||||||||||||||||||
Supply chain | 539.1 | 58.6 | % | 467.6 | 57.6 | % | 1,051.8 | 58.7 | % | 939.7 | 57.0 | % | ||||||||||||||||||||
International franchise royalties and fees | 48.1 | 5.2 | % | 55.0 | 6.8 | % | 105.6 | 5.9 | % | 109.6 | 6.6 | % | ||||||||||||||||||||
U.S. franchise advertising | 105.4 | 11.5 | % | 88.5 | 10.9 | % | 201.3 | 11.2 | % | 177.6 | 10.8 | % | ||||||||||||||||||||
Total revenues | $ | 920.0 | 100.0 | % | $ | 811.6 | 100.0 | % | $ | 1,793.1 | 100.0 | % | $ | 1,647.6 | 100.0 | % | ||||||||||||||||
Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||||||||||||||||||
U.S. Company-owned stores | $ | 116.6 | 11.3 | % | $ | 114.2 | 12.4 | % | $ | 229.3 | 11.3 | % | $ | 216.6 | 12.1 | % | ||||||||||||||||
U.S. franchise royalties and fees | 126.8 | 12.3 | % | 113.1 | 12.3 | % | 251.3 | 12.5 | % | 217.8 | 12.1 | % | ||||||||||||||||||||
Supply chain | 603.0 | 58.4 | % | 539.1 | 58.6 | % | 1,171.3 | 58.1 | % | 1,051.8 | 58.7 | % | ||||||||||||||||||||
International franchise royalties and fees | 69.7 | 6.7 | % | 48.1 | 5.2 | % | 136.5 | 6.8 | % | 105.6 | 5.9 | % | ||||||||||||||||||||
U.S. franchise advertising | 116.3 | 11.3 | % | 105.4 | 11.5 | % | 227.7 | 11.3 | % | 201.3 | 11.2 | % | ||||||||||||||||||||
Total revenues | $ | 1,032.5 | 100.0 | % | $ | 920.0 | 100.0 | % | $ | 2,016.2 | 100.0 | % | $ | 1,793.1 | 100.0 | % | ||||||||||||||||
Second Quarter of 2020 | Second Quarter of 2019 | Two Fiscal Quarters of 2020 | Two Fiscal Quarters of 2019 | Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Company-owned stores | $ | 114.2 | 34.3 | % | $ | 105.0 | 36.3 | % | $ | 216.6 | 34.1 | % | $ | 228.5 | 38.2 | % | $ | 116.6 | 32.4 | % | $ | 114.2 | 34.3 | % | $ | 229.3 | 32.4 | % | $ | 216.6 | 34.1 | % | ||||||||||||||||||||||||||||||||
U.S. franchise royalties and fees | 113.1 | 34.0 | % | 95.6 | 33.1 | % | 217.8 | 34.2 | % | 192.3 | 32.1 | % | 126.8 | 35.3 | % | 113.1 | 34.0 | % | 251.3 | 35.5 | % | 217.8 | 34.2 | % | ||||||||||||||||||||||||||||||||||||||||
U.S. franchise advertising | 105.4 | 31.7 | % | 88.5 | 30.6 | % | 201.3 | 31.7 | % | 177.6 | 29.7 | % | 116.3 | 32.3 | % | 105.4 | 31.7 | % | 227.7 | 32.1 | % | 201.3 | 31.7 | % | ||||||||||||||||||||||||||||||||||||||||
U.S. stores | $ | 332.8 | 100.0 | % | $ | 289.1 | 100.0 | % | $ | 635.7 | 100.0 | % | $ | 598.4 | 100.0 | % | $ | 359.8 | 100.0 | % | $ | 332.8 | 100.0 | % | $ | 708.4 | 100.0 | % | $ | 635.7 | 100.0 | % | ||||||||||||||||||||||||||||||||
Second Quarter of 2020 | Second Quarter of 2019 | Two Fiscal Quarters of 2020 | Two Fiscal Quarters of 2019 | |||||||||||||||||||||||||||||
Consolidated revenues | $ | 920.0 | 100.0 | % | $ | 811.6 | 100.0 | % | $ | 1,793.1 | 100.0 | % | $ | 1,647.6 | 100.0 | % | ||||||||||||||||
Consolidated cost of sales | 562.9 | 61.2 | % | 495.0 | 61.0 | % | 1,095.9 | 61.1 | % | 1,008.7 | 61.2 | % | ||||||||||||||||||||
Consolidated operating margin | $ | 357.1 | 38.8 | % | $ | 316.7 | 39.0 | % | $ | 697.2 | 38.9 | % | $ | 639.0 | 38.8 | % | ||||||||||||||||
Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||||||||||||||||||
Consolidated revenues | $ | 1,032.5 | 100.0 | % | $ | 920.0 | 100.0 | % | $ | 2,016.2 | 100.0 | % | $ | 1,793.1 | 100.0 | % | ||||||||||||||||
Consolidated cost of sales | 624.8 | 60.5 | % | 562.9 | 61.2 | % | 1,219.3 | 60.5 | % | 1,095.9 | 61.1 | % | ||||||||||||||||||||
Consolidated operating margin | $ | 407.7 | 39.5 | % | $ | 357.1 | 38.8 | % | $ | 796.8 | 39.5 | % | $ | 697.2 | 38.9 | % | ||||||||||||||||
Second Quarter of 2020 | Second Quarter of 2019 | Two Fiscal Quarters of 2020 | Two Fiscal Quarters of 2019 | |||||||||||||||||||||||||||||
Revenues | $ | 114.2 | 100.0 | % | $ | 105.0 | 100.0 | % | $ | 216.6 | 100.0 | % | $ | 228.5 | 100.0 | % | ||||||||||||||||
Cost of sales | 87.8 | 76.9 | % | 80.4 | 76.5 | % | 167.2 | 77.2 | % | 175.9 | 77.0 | % | ||||||||||||||||||||
Store operating margin | $ | 26.4 | 23.1 | % | $ | 24.6 | 23.5 | % | $ | 49.3 | 22.8 | % | $ | 52.5 | 23.0 | % | ||||||||||||||||
Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||||||||||||||||||
Revenues | $ | 116.6 | 100.0 | % | $ | 114.2 | 100.0 | % | $ | 229.3 | 100.0 | % | $ | 216.6 | 100.0 | % | ||||||||||||||||
Cost of sales | 88.0 | 75.5 | % | 87.8 | 76.9 | % | 173.8 | 75.8 | % | 167.2 | 77.2 | % | ||||||||||||||||||||
Store operating margin | $ | 28.6 | 24.5 | % | $ | 26.4 | 23.1 | % | $ | 55.6 | 24.2 | % | $ | 49.3 | 22.8 | % | ||||||||||||||||
Second Quarter of 2020 | Second Quarter of 2019 | Two Fiscal Quarters of 2020 | Two Fiscal Quarters of 2019 | |||||||||||||||||||||||||||||
Revenues | $ | 539.1 | 100.0 | % | $ | 467.6 | 100.0 | % | $ | 1,051.8 | 100.0 | % | $ | 939.7 | 100.0 | % | ||||||||||||||||
Cost of sales | 475.1 | 88.1 | % | 414.6 | 88.7 | % | 928.7 | 88.3 | % | 832.7 | 88.6 | % | ||||||||||||||||||||
Supply chain operating margin | $ | 64.0 | 11.9 | % | $ | 53.0 | 11.3 | % | $ | 123.2 | 11.7 | % | $ | 106.9 | 11.4 | % | ||||||||||||||||
Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||||||||||||||||||
Revenues | $ | 603.0 | 100.0 | % | $ | 539.1 | 100.0 | % | $ | 1,171.3 | 100.0 | % | $ | 1,051.8 | 100.0 | % | ||||||||||||||||
Cost of sales | 536.8 | 89.0 | % | 475.1 | 88.1 | % | 1,045.6 | 89.3 | % | 928.7 | 88.3 | % | ||||||||||||||||||||
Supply chain operating margin | $ | 66.2 | 11.0 | % | $ | 64.0 | 11.9 | % | $ | 125.7 | 10.7 | % | $ | 123.2 | 11.7 | % | ||||||||||||||||
Second Quarter of 2021 | Second Quarter of 2020 | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | |||||||||||||
U.S. Stores | $ | 111.8 | $ | 102.9 | $ | 219.3 | $ | 191.2 | ||||||||
Supply Chain | 58.6 | 56.9 | 111.1 | 108.3 | ||||||||||||
International Franchise | 56.4 | 36.4 | 110.8 | 79.9 | ||||||||||||
Other | (9.6 | ) | (12.6 | ) | (15.7 | ) | (20.7 | ) |
(In millions) | Two Fiscal Quarters of 2020 | Two Fiscal Quarters of 2019 | ||||||
Cash Flows Provided By (Used In) | ||||||||
Net cash provided by operating activities | $ | 211.8 | $ | 201.6 | ||||
Net cash used in investing activities | (74.2 | ) | (2.5 | ) | ||||
Net cash used in financing activities | (50.9 | ) | (114.3 | ) | ||||
Exchange rate changes | (0.3 | ) | 0.1 | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | $ | 86.4 | $ | 84.8 | ||||
(In millions) | Two Fiscal Quarters of 2021 | Two Fiscal Quarters of 2020 | ||||||
Cash Flows Provided By (Used In) | ||||||||
Net cash provided by operating activities | $ | 295.4 | $ | 211.8 | ||||
Net cash used in investing activities | (72.9 | ) | (74.2 | ) | ||||
Net cash used in financing activities | (101.2 | ) | (50.9 | ) | ||||
Exchange rate changes | 0.3 | (0.3 | ) | |||||
Change in cash and cash equivalents, restricted cash and cash equivalents | $ | 121.6 | $ | 86.4 | ||||
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (2) | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in thousands) | ||||||||||||
Period #4 (March 22, 2020 to April 19, 2020) | 1,067 | $ | 336.08 | — | $ | 326,552 | ||||||||||
Period #5 (April 20, 2020 to May 17, 2020) | 967 | 359.07 | — | 326,552 | ||||||||||||
Period #6 (May 18, 2020 to June 14, 2020) | 957 | 385.99 | — | 326,552 | ||||||||||||
Total | 2,991 | $ | 359.48 | — | $ | 326,552 | ||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (2) | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in thousands) | ||||||||||||
Period #4 (March 29, 2021 to April 25, 2021) | 1,017 | $ | 373.78 | — | $ | 1,000,000 | ||||||||||
Period #5 (April 26, 2021 to May 23, 2021) | 2,013,806 | (2) | 434.73 | (3) | 2,012,596 | (2) | — | |||||||||
Period #6 (May 24, 2021 to June 20, 2021) | 945 | 427.25 | — | — | ||||||||||||
Total | 2,015,768 | $ | 412.96 | 2,012,596 | $ | — | ||||||||||
(1) | 3,172 shares in the second quarter of |
(2) | On February 24, 2021, the |
(3) | The average price paid per share of $434.73 for Period #5 (April 26, 2021 to May 23, 2021) excludes the average price paid per share for shares purchased under the ASR Agreement. Because the total number of shares ultimately delivered was not determined until the end of the applicable purchase period in the third quarter of 2021, the average purchase price per share was not determinable until July 21, 2021, subsequent to the end of the second quarter. |
DOMINO’S PIZZA, INC. (Registrant) | |||||||
Date: July | 22, 2021 | /s/ | |||||
(Principal Executive Officer and Principal Financial Officer) |