Cover Page
Cover Page - shares | 8 Months Ended | |
Sep. 12, 2021 | Oct. 07, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0001286681 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Document Period End Date | Sep. 12, 2021 | |
Entity Registrant Name | DOMINOS PIZZA INC | |
Entity File Number | 001-32242 | |
Current Fiscal Year End Date | --01-02 | |
Entity Tax Identification Number | 38-2511577 | |
Entity Incorporation, State or Country Code | DE | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 30 Frank Lloyd Wright Drive | |
Entity Address, City or Town | Ann Arbor | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48105 | |
City Area Code | 734 | |
Local Phone Number | 930-3030 | |
Trading Symbol | DPZ | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
Entity Common Stock, Shares Outstanding | 36,386,777 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 12, 2021 | Jan. 03, 2021 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 295,352 | $ 168,821 | |
Restricted cash and cash equivalents | 206,274 | 217,453 | |
Accounts receivable, net | 238,906 | 244,560 | |
Inventories | 64,563 | 66,683 | |
Prepaid expenses and other | 34,094 | 24,169 | |
Advertising fund assets, restricted | 186,807 | 147,698 | |
Total current assets | 1,025,996 | 869,384 | |
Property, plant and equipment: | |||
Land and buildings | 95,111 | 88,063 | |
Leasehold and other improvements | 189,499 | 186,456 | |
Equipment | 309,811 | 292,456 | |
Construction in progress | 10,289 | 13,014 | |
Property, plant and equipment, Gross | 604,710 | 579,989 | |
Accumulated depreciation and amortization | (311,335) | (282,625) | |
Property, plant and equipment, net | 293,375 | 297,364 | |
Other assets: | |||
Operating lease right-of-use assets | 218,172 | 228,268 | |
Goodwill | 15,034 | 15,061 | |
Capitalized software, net | 91,371 | 81,306 | |
Investments | 82,500 | 40,000 | |
Other assets | 36,324 | 33,881 | |
Deferred income taxes | 1,584 | 1,904 | |
Total other assets | 444,985 | 400,420 | |
Total assets | 1,764,356 | 1,567,168 | |
Current liabilities: | |||
Current portion of long-term debt | 54,846 | 2,855 | |
Accounts payable | 111,780 | 94,499 | |
Operating lease liabilities | 37,093 | 35,861 | |
Insurance reserves | 27,900 | 26,377 | |
Dividends payable | 35,066 | 729 | |
Advertising fund liabilities | 178,539 | 141,175 | |
Other accrued liabilities | 151,130 | 169,323 | |
Total current liabilities | 596,354 | 470,819 | |
Long-term liabilities: | |||
Long-term debt, less current portion | 5,014,705 | 4,116,018 | |
Operating lease liabilities | 193,024 | 202,268 | |
Insurance reserves | 40,218 | 37,125 | |
Other accrued liabilities | 36,958 | 35,244 | |
Deferred income taxes | 10,610 | 6,099 | |
Total long-term liabilities | 5,295,515 | 4,396,754 | |
Stockholders' deficit | |||
Common stock | 366 | 389 | |
Additional paid-in capital | 115 | 5,122 | |
Retained deficit | (4,125,582) | (3,303,492) | |
Accumulated other comprehensive loss | (2,412) | (2,424) | |
Total stockholders' deficit | (4,127,513) | (3,300,405) | |
Total liabilities and stockholders' deficit | $ 1,764,356 | $ 1,567,168 | |
[1] | The condensed consolidated balance sheet at January 3, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Revenues: | ||||
Revenue | $ 997,990 | $ 967,719 | $ 3,014,160 | $ 2,760,844 |
Cost of sales: | ||||
Cost of sales | 612,790 | 605,738 | 1,832,119 | 1,701,615 |
Operating margin | 385,200 | 361,981 | 1,182,041 | 1,059,229 |
General and administrative | 96,342 | 91,652 | 288,043 | 268,209 |
U.S. franchise advertising | 108,578 | 108,148 | 336,278 | 309,422 |
Income from operations | 180,280 | 162,181 | 557,720 | 481,598 |
Other Income | 0 | 0 | 2,500 | 0 |
Interest income | 48 | 197 | 138 | 1,769 |
Interest expense | (45,523) | (38,605) | (130,822) | (117,802) |
Income before provision for income taxes | 134,805 | 123,773 | 429,536 | 365,565 |
Provision for income taxes | 14,403 | 24,644 | 74,754 | 26,166 |
Net income | $ 120,402 | $ 99,129 | $ 354,782 | $ 339,399 |
Earnings per share: | ||||
Common stock - basic | $ 3.29 | $ 2.53 | $ 9.43 | $ 8.70 |
Common stock - diluted | $ 3.24 | $ 2.49 | $ 9.30 | $ 8.54 |
U.S. Stores [Member] | U.S. Company-owned stores [Member] | ||||
Revenues: | ||||
Revenue | $ 108,416 | $ 113,254 | $ 337,749 | $ 329,820 |
Cost of sales: | ||||
Cost of sales | 86,932 | 90,788 | 260,693 | 258,007 |
U.S. Stores [Member] | U.S. franchise stores [Member] | ||||
Revenues: | ||||
Revenue | 121,624 | 118,054 | 372,946 | 335,898 |
U.S. Stores [Member] | U.S. franchise advertising [Member] | ||||
Revenues: | ||||
Revenue | 108,578 | 108,148 | 336,278 | 309,422 |
Supply Chain [Member] | ||||
Revenues: | ||||
Revenue | 588,819 | 573,661 | 1,760,119 | 1,625,502 |
Cost of sales: | ||||
Cost of sales | 525,858 | 514,950 | 1,571,426 | 1,443,608 |
International Franchise [Member] | International franchise royalties and fees [Member] | ||||
Revenues: | ||||
Revenue | $ 70,553 | $ 54,602 | $ 207,068 | $ 160,202 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 120,402 | $ 99,129 | $ 354,782 | $ 339,399 |
Currency translation adjustment | (404) | 1,113 | 12 | 320 |
Comprehensive income | $ 119,998 | $ 100,242 | $ 354,794 | $ 339,719 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | ||
Cash flows from operating activities: | |||||
Net income | $ 120,402 | $ 99,129 | $ 354,782 | $ 339,399 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 16,578 | 15,327 | 50,219 | 44,116 | |
Loss on sale/disposal of assets | 37 | 986 | 493 | 1,530 | |
Amortization of debt issuance costs | 5,770 | 3,853 | |||
Provision for deferred income taxes | 4,831 | 3,681 | |||
Non-cash equity-based compensation expense | 5,953 | 4,905 | 19,453 | 14,934 | |
Excess tax benefits from equity-based compensation | (18,258) | (56,862) | |||
Provision for losses on accounts and notes receivable | 532 | 1,536 | |||
Unrealized Gain (Loss) on Investments | (2,500) | ||||
Changes in operating assets and liabilities | 20,212 | (14,146) | |||
Changes in advertising fund assets and liabilities, restricted | 49,067 | 32,358 | |||
Net cash provided by operating activities | 484,601 | 370,399 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (50,652) | (51,163) | |||
Purchase of investments | (40,000) | (40,000) | |||
Other | 306 | 94 | |||
Net cash used in investing activities | (90,346) | (91,069) | |||
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 | (896,193) | (190,843) | |||
Proceeds from exercise of stock options | 15,948 | 26,526 | |||
Purchases of common stock | (1,104,687) | (79,590) | |||
Tax payments for restricted stock upon vesting | (6,817) | (6,584) | |||
Payments of common stock dividends and equivalents | (71,218) | (61,093) | |||
Cash paid for financing costs | (14,938) | ||||
Other | (244) | ||||
Net cash used in financing activities | (228,149) | (153,584) | |||
Effect of exchange rate changes on cash | 58 | 243 | |||
Change in cash and cash equivalents, restricted cash and cash equivalents | 166,164 | 125,989 | |||
Cash and cash equivalents, beginning of period | 168,821 | [1] | 190,615 | ||
Restricted cash and cash equivalents, beginning of period | 217,453 | [1] | 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 | 295,352 | 330,719 | 295,352 | 330,719 | |
Restricted cash and cash equivalents, end of period | 206,274 | 160,330 | 206,274 | 160,330 | |
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 166,684 | 118,864 | 166,684 | 118,864 | |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ 668,310 | $ 609,913 | $ 668,310 | $ 609,913 | |
[1] | The condensed consolidated balance sheet at January 3, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Basis of Presentation and Updat
Basis of Presentation and Updates to Significant Accounting Policies | 8 Months Ended |
Sep. 12, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Updates to Significant Accounting Policies | 1. Basis of Presentation and Updates to Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, refer to the consolidated financial statements and footnotes for the fiscal year ended January 3, 2021 included in the Company’s 2020 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 25, 2021 (the “2020 Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair statement have been included. Operating results for the fiscal quarter ended September 12, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2022. |
Segment Information
Segment Information | 8 Months Ended |
Sep. 12, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Fiscal Quarters Ended September 12, 2021 and September 6, 2020 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2021 $ 338,618 $ 619,840 $ 70,553 $ ( 31,021 ) $ — $ 997,990 2020 339,456 605,481 54,602 ( 31,820 ) — 967,719 Segment Income 2021 $ 101,968 $ 53,579 $ 57,311 N/A $ ( 10,010 ) $ 202,848 2020 101,513 51,114 44,461 N/A ( 13,689 ) 183,399 Three Fiscal Quarters Ended September 12, 2021 and September 6, 2020 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2021 $ 1,046,973 $ 1,854,609 $ 207,068 $ ( 94,490 ) $ — $ 3,014,160 2020 975,140 1,717,225 160,202 ( 91,723 ) — 2,760,844 Segment Income 2021 $ 321,252 $ 164,723 $ 168,145 N/A $ ( 25,726 ) $ 628,394 2020 292,724 159,455 124,375 N/A ( 34,376 ) 542,178 The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 12, September 6, September 12, September 6, 2021 2020 2021 2020 Total Segment Income $ 202,848 $ 183,399 $ 628,394 $ 542,178 Depreciation and amortization ( 16,578 ) ( 15,327 ) ( 50,219 ) ( 44,116 ) Loss on sale/disposal of assets ( 37 ) ( 986 ) ( 493 ) ( 1,530 ) Non-cash equity-based compensation expense ( 5,953 ) ( 4,905 ) ( 19,453 ) ( 14,934 ) Recapitalization-related expenses — — ( 509 ) — Income from operations 180,280 162,181 557,720 481,598 Other income — — 2,500 — Interest income 48 197 138 1,769 Interest expense ( 45,523 ) ( 38,605 ) ( 130,822 ) ( 117,802 ) Income before provision for income taxes $ 134,805 $ 123,773 $ 429,536 $ 365,565 |
Earnings Per Share
Earnings Per Share | 8 Months Ended |
Sep. 12, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Fiscal Quarter Ended Three Fiscal Quarters Ended September 12, September 6, September 12, September 6, 2021 2020 2021 2020 Net income available to common stockholders - basic and diluted $ 120,402 $ 99,129 $ 354,782 $ 339,399 Basic weighted average number of shares 36,627,660 39,246,231 37,639,418 38,990,149 Earnings per share – basic $ 3.29 $ 2.53 $ 9.43 $ 8.70 Diluted weighted average number of shares 37,130,209 39,791,805 38,144,509 39,724,289 Earnings per share – diluted $ 3.24 $ 2.49 $ 9.30 $ 8.54 The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2021 did not include 625 and 80,103 options to purchase common stock, respectively, as the effect of including these options would have been anti-dilutive. The denominator used in calculating diluted earnings per share for the three fiscal quarters of 2021 did not include 5,641 restricted stock units, as the effect of including these units would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2021 each did not include 62,131 restricted performance shares, as the performance targets for these awards had not yet been met. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2020 did not include 52,390 and 53,130 options to purchase common stock, respectively, as the effect of including these options would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2020 each did not include 118,518 restricted performance shares, as the performance targets for these awards had not yet been met. |
Stockholders' Deficit
Stockholders' Deficit | 8 Months Ended |
Sep. 12, 2021 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Deficit | 4. Stockholders’ Deficit The following table summarizes changes in stockholders’ deficit for the third quarter of 2021. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 20, 2021 36,853,571 $ 369 $ 7,771 $ ( 4,146,702 ) $ ( 2,008 ) Net income — — — 120,402 — Dividends declared on common stock and equivalents 0.94 per share) — — — ( 34,400 ) — Issuance and cancellation of stock awards, net 938 — — — — Tax payments for restricted stock upon vesting ( 11,918 ) — ( 5,730 ) — — Purchases of common stock ( 391,007 ) ( 4 ) ( 14,801 ) ( 64,882 ) — Exercise of stock options 113,903 1 6,922 — — Non-cash equity-based compensation expense — — 5,953 — — Currency translation adjustment — — — — ( 404 ) Balance at September 12, 2021 36,565,487 $ 366 $ 115 $ ( 4,125,582 ) $ ( 2,412 ) The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2021. Accumulated Additional Other Common Stock 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 — — — 354,782 — Dividends declared on common stock and equivalents 2.82 per share) — — — ( 105,555 ) — Issuance and cancellation of stock awards, net ( 980 ) — — — — Tax payments for restricted stock upon vesting ( 14,819 ) — ( 6,817 ) — — Purchases of common stock ( 2,469,473 ) ( 25 ) ( 33,345 ) ( 1,071,317 ) — Exercise of stock options 182,409 2 15,946 — — Non-cash equity-based compensation expense — — 19,453 — — Other — — ( 244 ) — — Currency translation adjustment — — — — 12 Balance at September 12, 2021 36,565,487 $ 366 $ 115 $ ( 4,125,582 ) $ ( 2,412 ) On April 30, 2021, the Company entered into a $ 1.0 billion accelerated share repurchase agreement (the “ASR Agreement”) with a counterparty. Refer to Note 5 for additional information related to this transaction. On July 20, 2021 , the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $ 1.0 billion of the Company’s common stock. This repurchase program replaced the Company’s previously approved $ 1.0 billion share repurchase program, which was fully utilized in connection with the ASR Agreement. During the third quarter of 2021, the Company repurchased and retired 391,007 shares of its common stock, including 238,190 shares received at settlement of the ASR Agreement and 152,817 shares of its common stock under this Board of Directors-approved share repurchase program for a total of approximately $ 79.7 million. During the three fiscal quarters of 2021, the Company repurchased and retired 2,469,473 shares of its common stock, including the 2,250,786 shares of common stock repurchased under the ASR Agreement and 218,687 shares of common stock repurchased under the Company's Board of Directors-approved share repurchase program for a total of approximately $ 1.1 billion. As of September 12, 2021, the end of the third quarter, the Company had a total remaining authorized amount for share repurchases of approximately $ 920.3 million . Subsequent to the end of the third quarter and through October 12, 2021, the Company repurchased and retired an additional 205,145 shares of common stock for a total of approximately $ 100.1 million. Subsequent to the end of the third quarter, on October 12, 2021 , the Company’s Board of Directors declared a $ 0.94 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 15, 2021 , to be paid on December 30, 2021 . The following table summarizes changes in stockholders’ deficit for the third quarter of 2020. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 14, 2020 39,347,213 $ 393 $ 32,251 $ ( 3,311,015 ) $ ( 4,535 ) Net income — — — 99,129 — Dividends declared on common stock and equivalents 0.78 per share) — — — ( 30,741 ) — Issuance and cancellation of stock awards, net 32,676 1 — — — Tax payments for restricted stock upon vesting ( 12,195 ) — ( 4,757 ) — — Exercise of stock options 24,781 — 1,725 — — Non-cash equity-based compensation expense — — 4,905 — — Currency translation adjustment — — — — 1,113 Balance at September 6, 2020 39,392,475 $ 394 $ 34,124 $ ( 3,242,627 ) $ ( 3,422 ) The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2020. 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 — — — 339,399 — Dividends declared on common stock and equivalents 2.34 per share) — — — ( 91,880 ) — Issuance and cancellation of stock awards, net 38,389 1 — — — Tax payments for restricted stock upon vesting ( 18,215 ) — ( 6,584 ) — — Purchases of common stock ( 271,064 ) ( 3 ) ( 988 ) ( 78,599 ) — Exercise of stock options 709,356 7 26,519 — — Non-cash equity-based compensation expense — — 14,934 — — Adoption of credit losses standard — — — 1,102 — Currency translation adjustment — — — — 320 Balance at September 6, 2020 39,392,475 $ 394 $ 34,124 $ ( 3,242,627 ) $ ( 3,422 ) |
Recapitalization
Recapitalization | 8 Months Ended |
Sep. 12, 2021 | |
Debt Disclosure [Abstract] | |
Recapitalization | 5. Recapitalization On April 16, 2021 (the “closing date”), the Company completed a recapitalization transaction (the “2021 Recapitalization”) in which certain of the Company’s subsidiaries issued new notes pursuant to an asset-backed securitization. The new notes consist of $ 850.0 million Series 2021-1 2.662 % Fixed Rate Senior Secured Notes, Class A-2-I with an anticipated term of 7.5 years (the “2021 A-2-I Fixed Rate Notes”) and $ 1.0 billion Series 2021-1 3.151 % Fixed Rate Senior Secured Notes, Class A-2-II with an anticipated term of 10 years (collectively with the 2021 A-2-I Fixed Rate Notes, the “2021 Notes”) in an offering exempt from registration under the Securities Act of 1933, as amended. As of September 12, 2021, the 2021 Notes had scheduled principal payments of $ 4.6 million in 2021, $ 18.5 million in each of 2022 through 2027, $ 804.8 million in 2028, $ 10.0 million in each of 2029 and 2030 and $ 905.0 million in 2031. Gross proceeds from the issuance of the 2021 Notes were $ 1.85 billion. Concurrently, certain of the Company’s subsidiaries also issued a new variable funding note facility which allows for advances of up to $ 200.0 million of Series 2021-1 Variable Funding Senior Secured Notes, Class A-1 Notes and certain other credit instruments, including letters of credit (the “2021 Variable Funding Notes”). The 2021 Variable Funding Notes were undrawn on the closing date. In connection with the issuance of the 2021 Variable Funding Notes, the Company’s previous $ 200.0 million variable funding note facility was canceled. A portion of proceeds from the 2021 Recapitalization was used to repay the remaining $ 291.0 million in outstanding principal under the Company’s 2017 five-year floating rate notes and $ 582.0 million in outstanding principal under the Company’s 2017 five-year fixed rate notes, prefund a portion of the interest payable on the 2021 Notes and pay transaction fees and expenses. In connection with the repayment of the 2017 five-year floating rate notes and 2017 five-year fixed rate notes, the Company expensed approximately $ 2.0 million for the remaining unamortized debt issuance costs associated with these notes. Additionally, in connection with the 2021 Recapitalization, the Company capitalized $ 14.9 million of debt issuance costs, which are being amortized into interest expense over the 7.5 and 10-year expected terms of the 2021 Notes. As of the fourth quarter of 2020, the Company had a leverage ratio of less than 5.0 x, and accordingly, did not make the previously scheduled debt amortization payment for its then-outstanding notes beginning in the first quarter of 2021. Accordingly, all principal amounts of the Company’s outstanding notes were classified as long-term debt in the condensed consolidated balance sheet as of January 3, 2021. Subsequent to the closing of the 2021 Recapitalization, the Company had a leverage ratio of greater than 5.0 x and, accordingly, the Company resumed making the scheduled amortization payments on its notes in the second quarter of 2021. On April 30, 2021, the Company entered into the $ 1.0 billion ASR Agreement. Pursuant to the terms of the ASR Agreement, on May 3, 2021, the Company used a portion of the proceeds from the 2021 Recapitalization to pay the counterparty $ 1.0 billion in cash and received and retired 2,012,596 shares of its common stock. Final settlement of the ASR Agreement occurred on July 21, 2021. In connection with the ASR Agreement, the Company received and retired a total of 2,250,786 shares of its common stock at an average price of $ 444.29 . |
Fair Value Measurements
Fair Value Measurements | 8 Months Ended |
Sep. 12, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Fair value measurements enable the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair Value of Cash Equivalents and Investments The fair values of the Company’s cash equivalents and investments in marketable securities are based on quoted prices in active markets for identical assets. The fair value of the Company’s Level 3 investment is not readily determinable. The fair value represents its cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments. The following tables summarize the carrying amounts and fair values of certain assets at September 12, 2021 and January 3, 2021: At September 12, 2021 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 247,009 $ 247,009 $ — $ — Restricted cash equivalents 131,725 131,725 — — Investments in marketable securities 15,103 15,103 — — Advertising fund cash equivalents, restricted 151,763 151,763 — — 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 During the second quarter of 2020, a subsidiary of the Company acquired a non-controlling interest in Dash Brands Ltd., a privately-held business company limited by shares incorporated with limited liability under the laws of the British Virgin Islands (“Dash Brands”), for $ 40.0 million. Through its subsidiaries, Dash Brands serves as the Company’s master franchisee in China that owns and operates Domino’s Pizza stores in that market. The Company’s investment in Dash Brands’ senior ordinary shares, which are not in-substance common stock, represents an equity investment without a readily determinable fair value and is recorded at cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments. In the first quarter of 2021, the Company invested an additional $ 40.0 million in Dash Brands based on Dash Brands’ achievement of certain pre-established performance conditions. In the first quarter of 2021, the Company recorded a positive adjustment of $ 2.5 million to the original carrying amount of $ 40.0 million resulting from the observable change in price from the valuation of the additional investment. This amount was recorded in other income in the Company’s condensed consolidated statements of income. The Company did not record any adjustments to the carrying amount of $ 82.5 million in the second or third quarter of 2021. The following table summarizes the reconciliation of the carrying amount of the Company’s investment in Dash Brands from the opening balance at January 3, 2021 to the closing balance at September 12, 2021. Three Fiscal Quarters of 2021 Carrying Amount Carrying Amount January 3, Unrealized September 12, 2021 Purchases Gain 2021 Investments $ 40,000 $ 40,000 $ 2,500 $ 82,500 Fair Value of Debt The estimated fair values of the Company’s fixed and floating rate notes are classified as Level 2 measurements, as the Company estimates the fair value amount by using available market information. The Company obtained quotes from two separate brokerage firms that are knowledgeable about the Company’s fixed and floating rate notes and, at times, trade these notes. The Company also performed its own internal analysis based on the information gathered from public markets, including information on notes that are similar to those of the Company. However, considerable judgment is required to interpret market data to estimate fair value. Accordingly, the fair value estimates presented are not necessarily indicative of the amount that the Company or the debtholders could realize in a current market exchange. The use of different assumptions and/or estimation methodologies may have a material effect on the estimated fair values stated below. Management estimated the approximate fair values of the 2015 fixed rate notes, the 2017 fixed and floating rate notes, the 2018 fixed rate notes, the 2019 fixed rate notes and the 2021 fixed rate notes as follows: September 12, 2021 January 3, 2021 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year Fixed Rate Notes $ 762,000 $ 794,766 $ 766,000 $ 809,662 2017 Five-Year Fixed Rate Notes — — 582,000 582,582 2017 Ten-Year Fixed Rate Notes 965,000 1,028,690 970,000 1,035,960 2017 Five-Year Floating Rate Notes — — 291,000 291,000 2018 7.5-Year Fixed Rate Notes 413,313 429,018 415,438 437,456 2018 9.25-Year Fixed Rate Notes 389,000 420,898 391,000 422,280 2019 Ten-Year Fixed Rate Notes 664,875 715,406 668,250 712,355 2021 7.5-Year Fixed Rate Notes 847,875 880,094 — — 2021 Ten-Year Fixed Rate Notes 997,500 1,053,360 — — The Company did not have any outstanding borrowings under its variable funding notes at September 12, 2021 or January 3, 2021 . |
Revenue Disclosures
Revenue Disclosures | 8 Months Ended |
Sep. 12, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disclosures | 7. Revenue Disclosures Contract Liabilities Contract liabilities primarily consist of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $ 4.8 million and $ 4.1 million were included in current other accrued liabilities as of September 12, 2021 and January 3, 2021, respectively. Deferred franchise fees and deferred development fees of $ 15.1 million and $ 15.0 million were included in long-term other accrued liabilities as of September 12, 2021 and January 3, 2021, respectively. Changes in deferred franchise fees and deferred development fees for the three fiscal quarters of 2021 and the three fiscal quarters of 2020 were as follows: Three Fiscal Quarters Ended September 12, September 6, 2021 2020 Deferred franchise fees and deferred development fees at beginning of period $ 19,090 $ 20,463 Revenue recognized during the period ( 3,944 ) ( 4,302 ) New deferrals due to cash received and other 4,784 3,937 Deferred franchise fees and deferred development fees at end of period $ 19,930 $ 20,098 Advertising Fund Assets As of September 12, 2021, advertising fund assets, restricted of $ 186.8 million consisted of $ 166.7 million of cash and cash equivalents, $ 18.7 million of accounts receivable and $ 1.4 million of prepaid expenses. As of September 12, 2021, advertising fund cash and cash equivalents included $ 8.3 million of cash contributed from U.S. Company-owned stores that had not yet been expended. As of January 3, 2021 , advertising fund assets, restricted of $ 147.7 million consisted of $ 115.9 million of cash and cash equivalents, $ 27.0 million of accounts receivable and $ 4.8 million of prepaid expenses. As of January 3, 2021 , advertising fund cash and cash equivalents included $ 6.5 million of cash contributed from U.S. Company-owned stores that had not yet been expended. |
Leases
Leases | 8 Months Ended |
Sep. 12, 2021 | |
Leases [Abstract] | |
Leases | 8. Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles, equipment and its corporate headquarters with expiration dates through 2041. The components of operating and finance lease cost for the third quarter and three fiscal quarters of 2021 and the third quarter and three fiscal quarters of 2020 were as follows: Fiscal Quarter Ended Three Fiscal Quarters Ended September 12, September 6, September 12, September 6, 2021 2020 2021 2020 Operating lease cost $ 10,451 $ 10,267 $ 31,201 $ 30,099 Finance lease cost: Amortization of right-of-use assets 1,022 548 2,944 1,248 Interest on lease liabilities 1,050 794 2,798 2,066 Total finance lease cost $ 2,072 $ 1,342 $ 5,742 $ 3,314 Rent expense totaled $ 18.3 million and $ 54.4 million in the third quarter and three fiscal quarters of 2021 , respectively. Rent expense totaled $ 17.4 million and $ 50.0 million in the third quarter and three fiscal quarters of 2020, respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Variable rent expense and rent expense for short-term leases were immaterial for the third quarter and three fiscal quarters of 2021 and 2020, respectively. Supplemental balance sheet information related to the Company’s finance leases as of September 12, 2021 and January 3, 2021 was as follows: September 12, January 3, 2021 2021 Land and buildings $ 74,085 $ 68,084 Accumulated depreciation and amortization ( 12,991 ) ( 10,049 ) Finance lease assets, net $ 61,094 $ 58,035 Current portion of long-term debt $ 3,346 $ 2,855 Long-term debt, less current portion 61,180 57,700 Total principal payable on finance leases $ 64,526 $ 60,555 As of September 12, 2021 and January 3, 2021, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: September 12, 2021 January 3, 2021 Operating Finance Operating Finance Leases Leases Leases 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 % Supplemental cash flow information related to leases for the third quarter and three fiscal quarters of 2021 and the third quarter and three fiscal quarters of 2020 were as follows: Fiscal Quarter Ended Three Fiscal Quarters Ended September 12, September 6, September 12, September 6, 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,236 $ 9,288 $ 29,528 $ 29,455 Operating cash flows from finance leases 1,050 794 2,798 2,066 Financing cash flows from finance leases 771 348 2,068 1,388 Right-of-use assets obtained in exchange for lease obligations: Operating leases 7,785 10,719 19,138 26,297 Finance leases 390 1,717 6,050 20,463 Maturities of lease liabilities as of September 12, 2021 were as follows: Operating Finance Leases Leases 2021 $ 16,203 $ 2,394 2022 44,458 7,197 2023 39,019 6,759 2024 37,769 7,216 2025 31,375 7,018 Thereafter 92,261 74,509 Total future minimum rental commitments 261,085 105,093 Less – amounts representing interest ( 30,968 ) ( 40,567 ) Total lease liabilities $ 230,117 $ 64,526 As of September 12, 2021 , the Company has additional leases for one supply chain center and certain supply chain tractors and trailers that had not yet commenced with estimated future minimum rental commitments of approximately $ 66.6 million. These leases are expected to commence in 2021 and 2022 with lease terms of up to 16 years . These undiscounted amounts are not included in the table above. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees was $ 10.3 million and $ 12.6 million as of September 12, 2021 and January 3, 2021 , respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues, expenses or liquidity. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 8 Months Ended |
Sep. 12, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 9. Supplemental Disclosures of Cash Flow Information The Company had non-cash investing activities related to accruals for capital expenditures of $ 4.0 million at September 12, 2021 and $ 4.3 million at January 3, 2021 . The Company also had less than $ 0.1 million of non-cash investing activities related to lease incentives in the three fiscal quarters of 2021. |
Equity Incentive Plans
Equity Incentive Plans | 8 Months Ended |
Sep. 12, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | 10. Equity Incentive Plans The Company’s current equity incentive plan, named the Domino’s Pizza, Inc. 2004 Equity Incentive Plan (the “2004 Equity Incentive Plan”), benefits certain of the Company’s employees and members of the Company’s Board of Directors. In the three fiscal quarters of 2021, the Company granted non-qualified stock options, restricted stock awards, restricted stock units and performance-based restricted stock units to certain employees and members of its Board of Directors under the 2004 Equity Incentive Plan. As a result of the changes to the characteristics and types of awards granted to date in 2021 under the 2004 Equity Incentive Plan, the Company has included disclosure of the nature and terms of these awards granted in the three fiscal quarters of 2021, as well as the methods used to estimate their fair values below. The cost of all employee stock options, as well as other equity-based compensation arrangements, is reflected in the condensed consolidated statements of income based on the estimated fair value of the awards and is amortized over the requisite service period of each award. All non-cash compensation expense amounts are recorded in general and administrative expense. Stock Options Stock options granted in fiscal 2021 were granted with an exercise price equal to the market price of the Company’s common stock at the date of the grant, expire ten years from the date of grant and generally vest over three years from the date of grant, generally subject to the holder’s continued employment. Additionally, all stock options granted become fully exercisable upon vesting. These awards also contain provisions for accelerated vesting upon the retirement eligibility of holders that have achieved specified service and age requirements. Management estimated the fair value of each option grant using the Black-Scholes option pricing method. The risk-free interest rate is based on the estimated expected life and is estimated based on U.S. Treasury Bond rates as of the grant date. The expected life is based on several factors, including, among other things, the vesting term and contractual term as well as historical experience. The expected volatility is based principally on the historical volatility of the Company’s share price. Other Equity-Based Compensation Arrangements Restricted stock awards granted to members of the Company’s Board of Directors in fiscal 2021 were granted with a fair value equal to the market price of the Company’s common stock on the grant date and vest one year from the date of grant, generally subject to the director’s continued service. These awards also contain provisions for accelerated vesting upon the retirement eligibility of holders that have achieved specified service and age requirements. Restricted stock units granted in fiscal 2021 were granted with a fair value equal to the market price of the Company’s common stock on the grant date. These restricted stock units are separated into two or three tranches and have time-based ratable vesting conditions with the last tranche of the award vesting three years from the grant date, generally subject to the holder’s continued employment. These awards generally also contain provisions for accelerated vesting upon the retirement eligibility of holders that have achieved specified service and age requirements. Performance-based restricted stock units granted in fiscal 2021 were granted with a fair value equal to the market price of the Company’s common stock on the grant date, adjusted for the estimated fair value of the market condition included in the award. These performance-based restricted stock units may vest three years from the date of grant, generally subject to the holder’s continued employment, and have time and performance-based vesting conditions which provide for potential payouts of the target award amount between zero percent and two hundred percent, based on the Company’s three-year cumulative achievement as compared to the specified target performance conditions. The performance-based restricted stock units also include provisions for a potential modifier (upward or downward) based on the Company’s cumulative three-year common stock performance relative to that of a pre-established peer group. These awards also contain provisions for accelerated vesting of the time-based vesting condition upon the retirement eligibility of holders that have achieved specified service and age requirements. Management estimated the fair value of each performance-based restricted stock unit using a Monte-Carlo simulation pricing method. The risk-free interest rate is based on the estimated expected life and is estimated based on U.S. Treasury Bond rates as of the grant date. The Monte-Carlo simulation also includes assumptions for expected volatility based principally on the historical volatility of the Company’s share price, as well as the correlation of the Company’s share price as compared to that of the pre-established peer group. |
New Accounting Pronouncements
New Accounting Pronouncements | 8 Months Ended |
Sep. 12, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 11. New Accounting Pronouncements Recently Adopted Accounting Standard Accounting Standards Update (“ASU”) 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes (Topic 740) In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) , which simplifies the accounting for income taxes. ASU 2019-12 was effective for fiscal years beginning after December 15, 2020, including applicable interim periods. The Company adopted this accounting standard in the first quarter of 2021, and it did not have a material impact on its condensed consolidated financial statements. Accounting Standards Not Yet Adopted The Company has considered all new accounting standards issued by the FASB. The Company has not yet completed its assessment of the following standard. ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. Subsequent to the closing of the 2021 Recapitalization, the Company’s 2021 Variable Funding Notes bear interest at fluctuating interest rates based on LIBOR. However, the associated loan documents contemplate a transition from LIBOR to secured overnight financing rate (“SOFR”) in the event that LIBOR ceases to exist. If the Company further needs to renegotiate its loan documents, the Company cannot predict what alternative index would be negotiated with its lenders. ASU 2020-04 may currently be adopted and may be applied prospectively to contract modifications made on or before December 31, 2022. The Company is currently assessing the impact of adopting this standard but does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. |
Segment Information (Tables)
Segment Information (Tables) | 8 Months Ended |
Sep. 12, 2021 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Fiscal Quarters Ended September 12, 2021 and September 6, 2020 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2021 $ 338,618 $ 619,840 $ 70,553 $ ( 31,021 ) $ — $ 997,990 2020 339,456 605,481 54,602 ( 31,820 ) — 967,719 Segment Income 2021 $ 101,968 $ 53,579 $ 57,311 N/A $ ( 10,010 ) $ 202,848 2020 101,513 51,114 44,461 N/A ( 13,689 ) 183,399 Three Fiscal Quarters Ended September 12, 2021 and September 6, 2020 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2021 $ 1,046,973 $ 1,854,609 $ 207,068 $ ( 94,490 ) $ — $ 3,014,160 2020 975,140 1,717,225 160,202 ( 91,723 ) — 2,760,844 Segment Income 2021 $ 321,252 $ 164,723 $ 168,145 N/A $ ( 25,726 ) $ 628,394 2020 292,724 159,455 124,375 N/A ( 34,376 ) 542,178 |
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes | The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 12, September 6, September 12, September 6, 2021 2020 2021 2020 Total Segment Income $ 202,848 $ 183,399 $ 628,394 $ 542,178 Depreciation and amortization ( 16,578 ) ( 15,327 ) ( 50,219 ) ( 44,116 ) Loss on sale/disposal of assets ( 37 ) ( 986 ) ( 493 ) ( 1,530 ) Non-cash equity-based compensation expense ( 5,953 ) ( 4,905 ) ( 19,453 ) ( 14,934 ) Recapitalization-related expenses — — ( 509 ) — Income from operations 180,280 162,181 557,720 481,598 Other income — — 2,500 — Interest income 48 197 138 1,769 Interest expense ( 45,523 ) ( 38,605 ) ( 130,822 ) ( 117,802 ) Income before provision for income taxes $ 134,805 $ 123,773 $ 429,536 $ 365,565 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 8 Months Ended |
Sep. 12, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Fiscal Quarter Ended Three Fiscal Quarters Ended September 12, September 6, September 12, September 6, 2021 2020 2021 2020 Net income available to common stockholders - basic and diluted $ 120,402 $ 99,129 $ 354,782 $ 339,399 Basic weighted average number of shares 36,627,660 39,246,231 37,639,418 38,990,149 Earnings per share – basic $ 3.29 $ 2.53 $ 9.43 $ 8.70 Diluted weighted average number of shares 37,130,209 39,791,805 38,144,509 39,724,289 Earnings per share – diluted $ 3.24 $ 2.49 $ 9.30 $ 8.54 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 8 Months Ended |
Sep. 12, 2021 | |
Federal Home Loan Banks [Abstract] | |
Changes in Stockholders' Deficit | The following table summarizes changes in stockholders’ deficit for the third quarter of 2021. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 20, 2021 36,853,571 $ 369 $ 7,771 $ ( 4,146,702 ) $ ( 2,008 ) Net income — — — 120,402 — Dividends declared on common stock and equivalents 0.94 per share) — — — ( 34,400 ) — Issuance and cancellation of stock awards, net 938 — — — — Tax payments for restricted stock upon vesting ( 11,918 ) — ( 5,730 ) — — Purchases of common stock ( 391,007 ) ( 4 ) ( 14,801 ) ( 64,882 ) — Exercise of stock options 113,903 1 6,922 — — Non-cash equity-based compensation expense — — 5,953 — — Currency translation adjustment — — — — ( 404 ) Balance at September 12, 2021 36,565,487 $ 366 $ 115 $ ( 4,125,582 ) $ ( 2,412 ) The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2021. Accumulated Additional Other Common Stock 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 — — — 354,782 — Dividends declared on common stock and equivalents 2.82 per share) — — — ( 105,555 ) — Issuance and cancellation of stock awards, net ( 980 ) — — — — Tax payments for restricted stock upon vesting ( 14,819 ) — ( 6,817 ) — — Purchases of common stock ( 2,469,473 ) ( 25 ) ( 33,345 ) ( 1,071,317 ) — Exercise of stock options 182,409 2 15,946 — — Non-cash equity-based compensation expense — — 19,453 — — Other — — ( 244 ) — — Currency translation adjustment — — — — 12 Balance at September 12, 2021 36,565,487 $ 366 $ 115 $ ( 4,125,582 ) $ ( 2,412 ) The following table summarizes changes in stockholders’ deficit for the third quarter of 2020. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 14, 2020 39,347,213 $ 393 $ 32,251 $ ( 3,311,015 ) $ ( 4,535 ) Net income — — — 99,129 — Dividends declared on common stock and equivalents 0.78 per share) — — — ( 30,741 ) — Issuance and cancellation of stock awards, net 32,676 1 — — — Tax payments for restricted stock upon vesting ( 12,195 ) — ( 4,757 ) — — Exercise of stock options 24,781 — 1,725 — — Non-cash equity-based compensation expense — — 4,905 — — Currency translation adjustment — — — — 1,113 Balance at September 6, 2020 39,392,475 $ 394 $ 34,124 $ ( 3,242,627 ) $ ( 3,422 ) The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2020. 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 — — — 339,399 — Dividends declared on common stock and equivalents 2.34 per share) — — — ( 91,880 ) — Issuance and cancellation of stock awards, net 38,389 1 — — — Tax payments for restricted stock upon vesting ( 18,215 ) — ( 6,584 ) — — Purchases of common stock ( 271,064 ) ( 3 ) ( 988 ) ( 78,599 ) — Exercise of stock options 709,356 7 26,519 — — Non-cash equity-based compensation expense — — 14,934 — — Adoption of credit losses standard — — — 1,102 — Currency translation adjustment — — — — 320 Balance at September 6, 2020 39,392,475 $ 394 $ 34,124 $ ( 3,242,627 ) $ ( 3,422 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 8 Months Ended |
Sep. 12, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | The following tables summarize the carrying amounts and fair values of certain assets at September 12, 2021 and January 3, 2021: At September 12, 2021 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 247,009 $ 247,009 $ — $ — Restricted cash equivalents 131,725 131,725 — — Investments in marketable securities 15,103 15,103 — — Advertising fund cash equivalents, restricted 151,763 151,763 — — 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 |
Summary of reconciliation of the carrying amount of the Company's investment in Dash Brands | The following table summarizes the reconciliation of the carrying amount of the Company’s investment in Dash Brands from the opening balance at January 3, 2021 to the closing balance at September 12, 2021. Three Fiscal Quarters of 2021 Carrying Amount Carrying Amount January 3, Unrealized September 12, 2021 Purchases Gain 2021 Investments $ 40,000 $ 40,000 $ 2,500 $ 82,500 |
Schedule of Estimated Fair Value | Management estimated the approximate fair values of the 2015 fixed rate notes, the 2017 fixed and floating rate notes, the 2018 fixed rate notes, the 2019 fixed rate notes and the 2021 fixed rate notes as follows: September 12, 2021 January 3, 2021 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year Fixed Rate Notes $ 762,000 $ 794,766 $ 766,000 $ 809,662 2017 Five-Year Fixed Rate Notes — — 582,000 582,582 2017 Ten-Year Fixed Rate Notes 965,000 1,028,690 970,000 1,035,960 2017 Five-Year Floating Rate Notes — — 291,000 291,000 2018 7.5-Year Fixed Rate Notes 413,313 429,018 415,438 437,456 2018 9.25-Year Fixed Rate Notes 389,000 420,898 391,000 422,280 2019 Ten-Year Fixed Rate Notes 664,875 715,406 668,250 712,355 2021 7.5-Year Fixed Rate Notes 847,875 880,094 — — 2021 Ten-Year Fixed Rate Notes 997,500 1,053,360 — — |
Revenue Disclosures (Tables)
Revenue Disclosures (Tables) | 8 Months Ended |
Sep. 12, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees | Changes in deferred franchise fees and deferred development fees for the three fiscal quarters of 2021 and the three fiscal quarters of 2020 were as follows: Three Fiscal Quarters Ended September 12, September 6, 2021 2020 Deferred franchise fees and deferred development fees at beginning of period $ 19,090 $ 20,463 Revenue recognized during the period ( 3,944 ) ( 4,302 ) New deferrals due to cash received and other 4,784 3,937 Deferred franchise fees and deferred development fees at end of period $ 19,930 $ 20,098 |
Leases (Tables)
Leases (Tables) | 8 Months Ended |
Sep. 12, 2021 | |
Leases [Abstract] | |
Components Of Operating And Finance Lease Cost | The components of operating and finance lease cost for the third quarter and three fiscal quarters of 2021 and the third quarter and three fiscal quarters of 2020 were as follows: Fiscal Quarter Ended Three Fiscal Quarters Ended September 12, September 6, September 12, September 6, 2021 2020 2021 2020 Operating lease cost $ 10,451 $ 10,267 $ 31,201 $ 30,099 Finance lease cost: Amortization of right-of-use assets 1,022 548 2,944 1,248 Interest on lease liabilities 1,050 794 2,798 2,066 Total finance lease cost $ 2,072 $ 1,342 $ 5,742 $ 3,314 |
Schedule of Supplemental Balance Sheet Information Related To Finance Leases | Supplemental balance sheet information related to the Company’s finance leases as of September 12, 2021 and January 3, 2021 was as follows: September 12, January 3, 2021 2021 Land and buildings $ 74,085 $ 68,084 Accumulated depreciation and amortization ( 12,991 ) ( 10,049 ) Finance lease assets, net $ 61,094 $ 58,035 Current portion of long-term debt $ 3,346 $ 2,855 Long-term debt, less current portion 61,180 57,700 Total principal payable on finance leases $ 64,526 $ 60,555 As of September 12, 2021 and January 3, 2021, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: September 12, 2021 January 3, 2021 Operating Finance Operating Finance Leases Leases Leases 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 % |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the third quarter and three fiscal quarters of 2021 and the third quarter and three fiscal quarters of 2020 were as follows: Fiscal Quarter Ended Three Fiscal Quarters Ended September 12, September 6, September 12, September 6, 2021 2020 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,236 $ 9,288 $ 29,528 $ 29,455 Operating cash flows from finance leases 1,050 794 2,798 2,066 Financing cash flows from finance leases 771 348 2,068 1,388 Right-of-use assets obtained in exchange for lease obligations: Operating leases 7,785 10,719 19,138 26,297 Finance leases 390 1,717 6,050 20,463 |
Schedule Of Maturities Of Operating And Finance Leases Liabilities | Maturities of lease liabilities as of September 12, 2021 were as follows: Operating Finance Leases Leases 2021 $ 16,203 $ 2,394 2022 44,458 7,197 2023 39,019 6,759 2024 37,769 7,216 2025 31,375 7,018 Thereafter 92,261 74,509 Total future minimum rental commitments 261,085 105,093 Less – amounts representing interest ( 30,968 ) ( 40,567 ) Total lease liabilities $ 230,117 $ 64,526 |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 997,990 | $ 967,719 | $ 3,014,160 | $ 2,760,844 |
Segment Income | 202,848 | 183,399 | 628,394 | 542,178 |
Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 588,819 | 573,661 | 1,760,119 | 1,625,502 |
Operating Segments [Member] | U.S. Stores [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 338,618 | 339,456 | 1,046,973 | 975,140 |
Segment Income | 101,968 | 101,513 | 321,252 | 292,724 |
Operating Segments [Member] | Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 619,840 | 605,481 | 1,854,609 | 1,717,225 |
Segment Income | 53,579 | 51,114 | 164,723 | 159,455 |
Operating Segments [Member] | International Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 70,553 | 54,602 | 207,068 | 160,202 |
Segment Income | 57,311 | 44,461 | 168,145 | 124,375 |
Intersegment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (31,021) | (31,820) | (94,490) | (91,723) |
Segment Reconciling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Income | $ (10,010) | $ (13,689) | $ (25,726) | $ (34,376) |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Segment Reconciliation [Abstract] | ||||
Total Segment Income | $ 202,848 | $ 183,399 | $ 628,394 | $ 542,178 |
Depreciation and amortization | (16,578) | (15,327) | (50,219) | (44,116) |
Loss on sale/disposal of assets | (37) | (986) | (493) | (1,530) |
Non-cash equity-based compensation expense | (5,953) | (4,905) | (19,453) | (14,934) |
Recapitalization-related expenses | (509) | |||
Income from operations | 180,280 | 162,181 | 557,720 | 481,598 |
Other Income | 0 | 0 | 2,500 | 0 |
Interest income | 48 | 197 | 138 | 1,769 |
Interest expense | (45,523) | (38,605) | (130,822) | (117,802) |
Income before provision for income taxes | $ 134,805 | $ 123,773 | $ 429,536 | $ 365,565 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders - basic and diluted | $ 120,402 | $ 99,129 | $ 354,782 | $ 339,399 |
Basic weighted average number of shares | 36,627,660 | 39,246,231 | 37,639,418 | 38,990,149 |
Earnings per share – basic | $ 3.29 | $ 2.53 | $ 9.43 | $ 8.70 |
Diluted weighted average number of shares | 37,130,209 | 39,791,805 | 38,144,509 | 39,724,289 |
Earnings Per Share, Diluted | $ 3.24 | $ 2.49 | $ 9.30 | $ 8.54 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Stock Option [Member] | ||||
Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 625 | 52,390 | 80,103 | 53,130 |
Restricted Performance Shares [Member] | ||||
Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share, amount unvested | 62,131 | 62,131 | 118,518 | |
Restricted Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 5,641 |
Stockholders' Deficit - Additio
Stockholders' Deficit - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Oct. 12, 2021 | Jul. 21, 2021 | Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | Jul. 20, 2021 | Apr. 30, 2021 |
Dividends declared per share | $ 0.94 | $ 0.78 | $ 2.82 | $ 2.34 | ||||
Number of share repurchased and retired | 2,469,473 | |||||||
Shares repurchased and retired, value | $ 79.7 | $ 1,100 | ||||||
Stock repurchased and retired during period, Shares | 2,250,786 | 391,007 | ||||||
Accelerated Share Repurchase Agreement [Member] | ||||||||
Stock repurchase program, authorized amount | $ 1,000 | |||||||
Common shares | 2,250,786 | 2,250,786 | ||||||
Stock repurchased and retired during period, Shares | 238,190 | |||||||
New Accelerated Share Repurchase Agreement Two Thousand And Twenty One [Member] | ||||||||
Stock repurchase program, authorized amount | $ 1,000 | |||||||
Stock repurchase program, Utilized amount cumulatively | $ 1,000 | |||||||
Share Repurchase Program [Member] | ||||||||
Stock repurchase program, authorized amount | $ 920.3 | $ 920.3 | ||||||
Common shares | 218,687 | 218,687 | ||||||
Stock repurchased and retired during period, Shares | 152,817 | |||||||
Subsequent Event [Member] | ||||||||
Dividends declared per share | $ 0.94 | |||||||
Record date of dividend | Dec. 15, 2021 | |||||||
Dividend declared date | Oct. 12, 2021 | |||||||
Dividend payable date | Dec. 30, 2021 | |||||||
Shares repurchased and retired, value | $ 100.1 | |||||||
Stock repurchased and retired during period, Shares | 205,145 |
Stockholders' Deficit (Detail)
Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | ||
Stockholders' Deficit [Line Items] | |||||
Balance | [1] | $ (3,300,405) | |||
Net income | $ 120,402 | $ 99,129 | 354,782 | $ 339,399 | |
Balance | $ (4,127,513) | $ (4,127,513) | |||
Common Stock [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Balance (in shares) | 36,853,571 | 39,347,213 | 38,868,350 | 38,934,009 | |
Balance | $ 369 | $ 393 | $ 389 | $ 389 | |
Issuance and cancellation of stock awards, net (in shares) | 938 | 32,676 | 980 | 38,389 | |
Issuance and cancellation of stock awards, net | $ 1 | $ 1 | |||
Tax payments for restricted stock upon vesting, (in shares) | (11,918) | (12,195) | (14,819) | 18,215 | |
Purchases of common stock, (in shares) | (391,007) | (2,469,473) | (271,064) | ||
Purchases of common stock | $ (4) | $ (25) | $ (3) | ||
Exercises of stock options, (in shares) | 113,903 | 24,781 | 182,409 | 709,356 | |
Exercises of stock options | $ 1 | $ 2 | $ 7 | ||
Balance (in shares) | 36,565,487 | 39,392,475 | 36,565,487 | 39,392,475 | |
Balance | $ 366 | $ 394 | $ 366 | $ 394 | |
Additional Paid-in Capital [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Balance | 7,771 | 32,251 | 5,122 | 243 | |
Tax payments for restricted stock upon vesting | (5,730) | (4,757) | (6,817) | (6,584) | |
Purchases of common stock | (14,801) | (33,345) | (988) | ||
Exercises of stock options | 6,922 | 1,725 | 15,946 | 26,519 | |
Non-cash equity-based compensation expense | 5,953 | 4,905 | 19,453 | 14,934 | |
Other | (244) | ||||
Balance | 115 | 34,124 | 115 | 34,124 | |
Retained Deficit [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Balance | (4,146,702) | (3,311,015) | (3,303,492) | (3,412,649) | |
Net income | 120,402 | 99,129 | 354,782 | 339,399 | |
Dividends declared on common stock and equivalents | (34,400) | (30,741) | (105,555) | (91,880) | |
Purchases of common stock | (64,882) | (1,071,317) | (78,599) | ||
Adoption of credit losses standard | 1,102 | ||||
Balance | (4,125,582) | (3,242,627) | (4,125,582) | (3,242,627) | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Balance | (2,008) | (4,535) | (2,424) | (3,742) | |
Currency translation adjustment | (404) | 1,113 | 12 | 320 | |
Balance | $ (2,412) | $ (3,422) | $ (2,412) | $ (3,422) | |
[1] | The condensed consolidated balance sheet at January 3, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Stockholders' Deficit (Parenthe
Stockholders' Deficit (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Dividends declared per share | $ 0.94 | $ 0.78 | $ 2.82 | $ 2.34 |
Recapitalization - Additional I
Recapitalization - Additional Information (Detail) $ / shares in Units, $ in Millions | Oct. 12, 2021shares | Jul. 21, 2021$ / sharesshares | May 03, 2021USD ($)shares | Apr. 16, 2021USD ($) | Sep. 12, 2021USD ($)shares | Mar. 28, 2021 | Sep. 12, 2021USD ($) | Apr. 30, 2021USD ($) |
Debt Instrument [Line Items] | ||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 5 | |||||||
Stock repurchased and retired during period, Shares | shares | 2,250,786 | 391,007 | ||||||
Accelerated Share Repurchase Agreement Two Thousand And Twenty One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 1,000 | |||||||
Stock repurchased and retired during period, Value | $ 1,000 | |||||||
Stock repurchased and retired during period, Shares | shares | 2,012,596 | |||||||
Stock repurchased price per share | $ / shares | $ 444.29 | |||||||
Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stock repurchased and retired during period, Shares | shares | 205,145 | |||||||
Two Thousand and Twenty Variable Funding Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable funding notes | $ 200 | |||||||
Two Thousand and Twenty One Recapitalization | ||||||||
Debt Instrument [Line Items] | ||||||||
Scheduled principal payments in year 2021 | $ 4.6 | $ 4.6 | ||||||
Scheduled principal payments in year 2022 | 18.5 | 18.5 | ||||||
Scheduled principal payments in year 2023 | 18.5 | 18.5 | ||||||
Scheduled principal payments in year 2024 | 18.5 | 18.5 | ||||||
Scheduled principal payments in year 2025 | 18.5 | 18.5 | ||||||
Scheduled principal payments in year 2026 | 18.5 | 18.5 | ||||||
Scheduled principal payments in year 2027 | 18.5 | 18.5 | ||||||
Scheduled principal payments in year 2028 | 804.8 | 804.8 | ||||||
Scheduled principal payments in year 2029 | 10 | 10 | ||||||
Scheduled principal payments in year 2030 | 10 | 10 | ||||||
Scheduled principal payments in year 2031 | 905 | 905 | ||||||
Gross proceeds from the issuance of debt | 1,850 | |||||||
Debt issuance costs | $ 14.9 | $ 14.9 | ||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 5 | |||||||
Two Thousand and Twenty One Recapitalization | Two Thousand and Twenty One A2I Fixed Rate Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 850 | |||||||
Debt instrument, stated percentage | 2.662% | |||||||
Debt instrument, term | 7 years 6 months | |||||||
Two Thousand and Twenty One Recapitalization | Two Thousand and Twenty One A2II Fixed Rate Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 1,000 | |||||||
Debt instrument, term | 10 years | |||||||
Two Thousand and Twenty One Recapitalization | Two Thousand and Twenty Variable Funding Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, stated percentage | 3.151% | |||||||
Variable funding notes | $ 200 | |||||||
Two Thousand and Twenty One Recapitalization | DPZ Class A2i Series One Floating Rate Senior Secured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of Outstanding Principal portion of debt | 291 | |||||||
Two Thousand and Twenty One Recapitalization | DPZ Class A2ii Series One Three Point Zero Eight Two Percent Fixed Rate Senior Secured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of Outstanding Principal portion of debt | 582 | |||||||
DPZ Two Thousand Seventeen Recapitalization | ||||||||
Debt Instrument [Line Items] | ||||||||
Unamortized debt issuance costs | $ 2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Dash Brands Ltd [Member] - USD ($) $ in Millions | Sep. 12, 2021 | Jun. 20, 2021 | Mar. 28, 2021 | Jun. 14, 2020 |
Acquisition of non-controlling interest | $ 40 | $ 40 | ||
Adjustments to the carrying amount of equity securities | 2.5 | |||
Investments at carrying value | $ 82.5 | $ 82.5 | $ 82.5 | $ 40 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Sep. 12, 2021 | Jan. 03, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 247,009 | $ 151,502 |
Restricted cash equivalents, carrying amount | 131,725 | 126,595 |
Investments in marketable securities, carrying amount | 15,103 | 13,251 |
Advertising fund cash equivalents, restricted, carrying amount | 151,763 | 104,197 |
Inverstments | 82,500 | 40,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 247,009 | 151,502 |
Restricted cash equivalents, carrying amount | 131,725 | 126,595 |
Investments in marketable securities, carrying amount | 15,103 | 13,251 |
Advertising fund cash equivalents, restricted, carrying amount | 151,763 | 104,197 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Inverstments | $ 82,500 | $ 40,000 |
Summary of reconciliation of th
Summary of reconciliation of the carrying amount of the Company's investment in Dash Brands - (Detail) - DPZ Dash Brands Ltd [Member] $ in Thousands | 8 Months Ended |
Sep. 12, 2021USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Equity Securities without Readily Determinable Fair Value, Amount | $ 40,000 |
Additional Purchase of Equity Securities Without Readily Determinable Fair Value Amount | 40,000 |
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | 2,500 |
Equity Securities without Readily Determinable Fair Value, Amount | $ 82,500 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Sep. 12, 2021 | Jan. 03, 2021 |
2015 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 762,000 | $ 766,000 |
Fair Value | 794,766 | 809,662 |
2017 Five-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 582,000 | |
Fair Value | 582,582 | |
2017 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 965,000 | 970,000 |
Fair Value | 1,028,690 | 1,035,960 |
2017 Five-Year Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 291,000 | |
Fair Value | 291,000 | |
2018 7.5-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 413,313 | 415,438 |
Fair Value | 429,018 | 437,456 |
2018 9.25-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 389,000 | 391,000 |
Fair Value | 420,898 | 422,280 |
2019 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 664,875 | 668,250 |
Fair Value | 715,406 | $ 712,355 |
2021 7.5-Year Fixed Rate Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount | 847,875 | |
Fair Value | 880,094 | |
2021 Ten-Year Fixed Rate Notes | ||
Debt Instrument [Line Items] | ||
Principal Amount | 997,500 | |
Fair Value | $ 1,053,360 |
Revenue Disclosures - Additiona
Revenue Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 12, 2021 | Jan. 03, 2021 | |
Contract with Customer, Liability, Current | $ 4,800 | $ 4,100 | |
Contract with Customer, Liability, Noncurrent | 15,100 | 15,000 | |
Advertising Fund Assets Restricted | 186,807 | 147,698 | [1] |
U.S. stores [Member] | U.S. franchise stores [Member] | Cash, cash equivalents and investments [Member] | |||
Advertising Fund Assets Restricted | 166,700 | 115,900 | |
U.S. stores [Member] | U.S. franchise stores [Member] | Prepaid expenses [Member] | |||
Advertising Fund Assets Restricted | 1,400 | 4,800 | |
U.S. stores [Member] | U.S. franchise stores [Member] | Accounts receivable [Member] | |||
Advertising Fund Assets Restricted | 18,700 | 27,000 | |
U.S. stores [Member] | U.S. Company-owned stores [Member] | |||
Cash contributed from Company-owned stores | $ 8,300 | $ 6,500 | |
[1] | The condensed consolidated balance sheet at January 3, 2021 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Schedule of Contract Liabilitie
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees (Detail) - USD ($) $ in Thousands | 8 Months Ended | |
Sep. 12, 2021 | Sep. 06, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred franchise fees and deferred development fees at beginning of period | $ 19,090 | $ 20,463 |
Revenue recognized during the period | (3,944) | (4,302) |
New deferrals due to cash received and other | 4,784 | 3,937 |
Deferred franchise fees and deferred development fees at end of period | $ 19,930 | $ 20,098 |
Components of Operating and Fin
Components of Operating and Finance Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Operating lease cost | $ 10,451 | $ 10,267 | $ 31,201 | $ 30,099 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 1,022 | 548 | 2,944 | 1,248 |
Interest on lease liabilities | 1,050 | 794 | 2,798 | 2,066 |
Total finance lease cost | $ 2,072 | $ 1,342 | $ 5,742 | $ 3,314 |
Supplemental balance sheet info
Supplemental balance sheet information related to the Company's leases (Detail) - USD ($) $ in Thousands | Sep. 12, 2021 | Jan. 03, 2021 |
Land and buildings | $ 74,085 | $ 68,084 |
Accumulated depreciation and amortization | (12,991) | (10,049) |
Finance lease assets, net | 61,094 | 58,035 |
Current portion of long-term debt | 3,346 | 2,855 |
Long-term debt, less current portion | 61,180 | 57,700 |
Total principal payable on finance leases | $ 64,526 | $ 60,555 |
Finance Lease, Weighted Average Remaining Lease Term | 15 years | 16 years |
Finance Lease, Weighted Average Discount Rate, Percent | 6.50% | 6.80% |
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years |
Operating Lease, Weighted Average Discount Rate, Percent | 3.70% | 3.70% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 10,236 | $ 9,288 | $ 29,528 | $ 29,455 |
Operating cash flows from finance leases | 1,050 | 794 | 2,798 | 2,066 |
Financing cash flows from finance leases | 771 | 348 | 2,068 | 1,388 |
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | 7,785 | 10,719 | 19,138 | 26,297 |
Finance leases | $ 390 | $ 1,717 | $ 6,050 | $ 20,463 |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 12, 2021 | Jan. 03, 2021 |
Leases [Abstract] | ||
2021 | $ 16,203 | |
2022 | 44,458 | |
2023 | 39,019 | |
2024 | 37,769 | |
2025 | 31,375 | |
Thereafter | 92,261 | |
Total future minimum rental commitments | 261,085 | |
Less – amounts representing interest | (30,968) | |
Total lease liabilities | 230,117 | |
2021 | 2,394 | |
2022 | 7,197 | |
2023 | 6,759 | |
2024 | 7,216 | |
2025 | 7,018 | |
Thereafter | 74,509 | |
Total future minimum rental commitments | 105,093 | |
Less – amounts representing interest | (40,567) | |
Total principal payable on finance leases | $ 64,526 | $ 60,555 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | |||
Sep. 12, 2021 | Sep. 06, 2020 | Sep. 12, 2021 | Sep. 06, 2020 | Jan. 03, 2021 | |
Rent Expenses | $ 18.3 | $ 17.4 | $ 54.4 | $ 50 | |
Potential future payments | 10.3 | 10.3 | $ 12.6 | ||
Operating Lease [Member] | |||||
Lessee, operating lease, lease not yet commenced, future minimum rental commitments | $ 66.6 | $ 66.6 | |||
Lease Term | 16 years | 16 years |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended |
Sep. 12, 2021 | Jan. 03, 2021 | |
Schedule of Cash Flow, Supplemental [Line Items] | ||
Capital expenditure accrual | $ 4 | $ 4.3 |
Non cash investing activities lease incentives | $ 0.1 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) | 8 Months Ended |
Sep. 12, 2021 | |
Restricted Stock [Member] | Share-based Payment Arrangement, Tranche Three [Member] | Two Thousand And Twenty One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 3 years |
Restricted Stock [Member] | DPZ Two Thousand And Four Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 1 year |
Restricted Stock [Member] | DPZ Two Thousand And Four Equity Incentive Plan [Member] | Maximum [Member] | Two Thousand And Twenty One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, number of tranches | 3 |
Restricted Stock [Member] | DPZ Two Thousand And Four Equity Incentive Plan [Member] | Minimum [Member] | Two Thousand And Twenty One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, number of tranches | 2 |
Stock Option [Member] | DPZ Two Thousand And Four Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, expiration period | 10 years |
Share-based compensation arrangement by share-based payment award, vesting period | 3 years |
Performance Based And Time Based Restricted Stock [Member] | DPZ Two Thousand And Four Equity Incentive Plan [Member] | Two Thousand And Twenty One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, vesting period | 3 years |
Share-based compensation arrangement by share-based payment award, cumulative achievement Year | 3 years |
Performance Based And Time Based Restricted Stock [Member] | DPZ Two Thousand And Four Equity Incentive Plan [Member] | Maximum [Member] | Two Thousand And Twenty One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Percentage of potential payouts of the target award amount | 200.00% |
Performance Based And Time Based Restricted Stock [Member] | DPZ Two Thousand And Four Equity Incentive Plan [Member] | Minimum [Member] | Two Thousand And Twenty One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award, Percentage of potential payouts of the target award amount | 0.00% |