Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 24, 2019 | Apr. 17, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 24, 2019 | |
Entity Registrant Name | DOMINOS PIZZA INC | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,103,909 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001286681 | |
Current Fiscal Year End Date | --12-29 | |
Trading Symbol | DPZ | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 24, 2019 | Dec. 30, 2018 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 83,114 | $ 25,438 | |
Restricted cash and cash equivalents | 150,055 | 166,993 | |
Accounts receivable, net | 194,064 | 190,091 | |
Inventories | 45,668 | 45,975 | |
Prepaid expenses and other | 19,544 | 25,710 | |
Advertising fund assets, restricted | 98,098 | 112,744 | |
Total current assets | 590,543 | 566,951 | |
Property, plant and equipment: | |||
Land and buildings | 41,519 | 41,147 | |
Leasehold and other improvements | 171,859 | 170,498 | |
Equipment | 246,909 | 243,654 | |
Construction in progress | 27,832 | 31,822 | |
Property, plant and equipment, Gross | 488,119 | 487,121 | |
Accumulated depreciation and amortization | (260,252) | (252,182) | |
Property, plant and equipment, net | 227,867 | 234,939 | |
Other assets: | |||
Operating lease right-of-use assets | 222,005 | 0 | |
Goodwill | 14,919 | 14,919 | |
Capitalized software, net | 66,159 | 63,809 | |
Other assets | 22,728 | 21,241 | |
Deferred income taxes | 4,054 | 5,526 | |
Total other assets | 329,865 | 105,495 | |
Total assets | 1,148,275 | 907,385 | |
Current liabilities: | |||
Current portion of long-term debt | 35,909 | 35,893 | |
Accounts payable | 84,888 | 92,546 | |
Operating lease liabilities | 31,753 | 0 | |
Insurance reserves | 22,034 | 22,210 | |
Dividends payable | 27,156 | 581 | |
Advertising fund liabilities | 93,040 | 107,150 | |
Other accrued liabilities | 117,233 | 121,363 | |
Total current liabilities | 412,013 | 379,743 | |
Long-term liabilities: | |||
Long-term debt, less current portion | 3,447,819 | 3,495,691 | |
Operating lease liabilities | 198,508 | 0 | |
Insurance reserves | 32,558 | 31,065 | |
Other accrued liabilities | 32,542 | 40,807 | |
Total long-term liabilities | 3,711,427 | 3,567,563 | |
Stockholders' deficit: | |||
Common stock | 411 | 410 | |
Additional paid-in capital | 5,464 | 569 | |
Retained deficit | (2,976,848) | (3,036,471) | |
Accumulated other comprehensive loss | (4,192) | (4,429) | |
Total stockholders' deficit | (2,975,165) | (3,039,921) | |
Total liabilities and stockholders' deficit | $ 1,148,275 | $ 907,385 | |
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 24, 2019 | Mar. 25, 2018 | |
Revenues: | ||
Revenue | $ 835,963 | $ 785,371 |
Cost of sales: | ||
Cost of sales | 513,674 | 485,506 |
Operating margin | 322,289 | 299,865 |
General and administrative | 89,664 | 84,178 |
U.S. franchise advertising | 89,121 | 82,211 |
Income from operations | 143,504 | 133,476 |
Interest income | 693 | 480 |
Interest expense | (35,054) | (30,286) |
Income before provision for income taxes | 109,143 | 103,670 |
Provision for income taxes | 16,493 | 14,843 |
Net income | $ 92,650 | $ 88,827 |
Earnings per share: | ||
Common stock - basic | $ 2.27 | $ 2.07 |
Common stock - diluted | $ 2.20 | $ 2 |
U.S. Stores [Member] | U.S. Company-owned stores [Member] | ||
Revenues: | ||
Revenue | $ 123,450 | $ 121,186 |
Cost of sales: | ||
Cost of sales | 95,540 | 93,038 |
U.S. Stores [Member] | U.S. franchise royalties and fees [Member] | ||
Revenues: | ||
Revenue | 96,708 | 89,490 |
U.S. Stores [Member] | U.S. franchise advertising [Member] | ||
Revenues: | ||
Revenue | 89,121 | 82,211 |
Supply Chain [Member] | ||
Revenues: | ||
Revenue | 472,100 | 440,063 |
Cost of sales: | ||
Cost of sales | 418,134 | 392,468 |
International Franchise [Member] | International franchise royalties and fees [Member] | ||
Revenues: | ||
Revenue | $ 54,584 | $ 52,421 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 24, 2019 | Mar. 25, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 92,650 | $ 88,827 |
Currency translation adjustment | 237 | (455) |
Comprehensive income | $ 92,887 | $ 88,372 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 24, 2019 | Mar. 25, 2018 | ||
Cash flows from operating activities: | |||
Net income | $ 92,650 | $ 88,827 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,790 | 11,069 | |
Loss on sale/disposal of assets | 149 | 365 | |
Amortization of debt issuance costs | 1,101 | 1,177 | |
Provision for deferred income taxes | 1,467 | 566 | |
Non-cash compensation expense | 4,608 | 6,063 | |
Excess tax benefits from equity-based compensation | (8,663) | (8,410) | |
Other | 94 | (57) | |
Changes in operating assets and liabilities | 1,974 | (15,405) | |
Changes in advertising fund assets and liabilities, restricted | (10,172) | (519) | |
Net cash provided by operating activities | 96,998 | 83,676 | |
Cash flows from investing activities: | |||
Capital expenditures | (12,222) | (13,647) | |
Maturities of advertising fund investments, restricted | 4,007 | ||
Other | 262 | (499) | |
Net cash used in investing activities | (11,960) | (10,139) | |
Cash flows from financing activities: | |||
Repayments of long-term debt and finance lease obligations | (48,968) | (8,078) | |
Proceeds from exercise of stock options | 4,537 | 3,718 | |
Purchases of common stock | (8,144) | (101,084) | |
Tax payments for restricted stock upon vesting | (2,467) | (2,299) | |
Payments of common stock dividends and equivalents | (90) | (79) | |
Net cash used in financing activities | (55,132) | (107,822) | |
Effect of exchange rate changes on cash | 124 | 48 | |
Change in cash and cash equivalents, restricted cash and cash equivalents | 30,030 | (34,237) | |
Cash and cash equivalents, beginning of period | 25,438 | [1] | 35,768 |
Restricted cash and cash equivalents, beginning of period | 166,993 | [1] | 191,762 |
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 44,988 | 27,316 | |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 237,419 | 254,846 | |
Cash and cash equivalents, end of period | 83,114 | 44,609 | |
Restricted cash and cash equivalents, end of period | 150,055 | 145,186 | |
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 34,280 | 30,814 | |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ 267,449 | $ 220,609 | |
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Basis of Presentation and Updat
Basis of Presentation and Updates to Significant Accounting Policies | 3 Months Ended |
Mar. 24, 2019 | |
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 10-01 S-X. 10-K, 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 March 24, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2019. Updates to Significant Accounting Policies The Company adopted Accounting Standards Codification 842, Leases Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters. The Company determines whether an arrangement is or contains a lease at contract inception. The majority of the Company’s leases are classified as operating leases, which are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the Company’s condensed consolidated balance sheet. Finance leases are included in property and equipment, current portion of long-term debt and long-term debt on the Company’s condensed consolidated balance sheet. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. The Company estimates its incremental borrowing rate for each lease using a portfolio approach based on the respective weighted average term of the agreements. This estimation considers the market rates of the Company’s outstanding collateralized borrowings and interpolations of rates outside of the terms of the outstanding borrowings, including comparisons to comparable borrowings of similarly-rated companies with longer term borrowings. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Amortization expense for finance leases is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense, while interest expense for finance leases is recognized using the effective interest method. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 24, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The following table summarizes revenues, income from operations 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. Fiscal Quarters Ended March 24, 2019 and March 25, 2018 U.S. Supply International Intersegment Other Total Revenues 2019 $ 309,279 $ 505,681 $ 54,584 $ (33,581 ) $ — $ 835,963 2018 292,887 473,956 52,421 (33,893 ) — 785,371 Income from operations 2019 $ 80,615 $ 42,021 $ 42,754 N/A $ (21,886 ) $ 143,504 2018 75,289 37,372 41,524 N/A (20,709 ) 133,476 Segment Income 2019 $ 83,598 $ 46,047 $ 42,800 N/A $ (10,394 ) $ 162,051 2018 78,344 40,156 41,572 N/A (9,099 ) 150,973 The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended March 24, March 25, Total Segment Income $ 162,051 $ 150,973 Depreciation and amortization (13,790 ) (11,069 ) Loss on sale/disposal of assets (149 ) (365 ) Non-cash (4,608 ) (6,063 ) Income from operations 143,504 133,476 Interest income 693 480 Interest expense (35,054 ) (30,286 ) Income before provision for income taxes $ 109,143 $ 103,670 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 24, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Fiscal Quarter Ended March 24, March 25, Net income available to common stockholders and diluted $ 92,650 $ 88,827 Basic weighted average number of shares 40,865,532 42,822,112 Earnings per share – basic $ 2.27 $ 2.07 Diluted weighted average number of shares 42,202,429 44,377,509 Earnings per share – diluted $ 2.20 $ 2.00 The denominator used in calculating diluted earnings per share for the first quarter of 2019 does not include 71,880 options to purchase common stock as the effect of including these options would have been anti-dilutive. The denominator used in calculating diluted earnings per share for the first quarter of 2019 does not include 1,800 shares subject to restricted stock awards, as the effect of including these shares would have been anti-dilutive. The denominator used in calculating diluted earnings per share for the first quarter of 2019 does not include 96,712 restricted performance shares, as the performance targets for these awards had not yet been met. The denominator used in calculating diluted earnings per share for common stock for the first quarter of 2018 does not include 87,420 options to purchase common stock, as the effect of including these options would have been anti-dilutive. The denominator used in calculating diluted earnings per share for the first quarter of 2018 did not include 117,062 restricted performance shares, as the performance targets for these awards had not yet been met. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Mar. 24, 2019 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Deficit | 4. Stockholders’ Deficit The following table summarizes changes in stockholders’ deficit for the first quarter of 2019. Common Stock Additional Paid-in Capital Retained Deficit Accumulated Loss Shares Amount Balance at December 30, 2018 40,977,561 $ 410 $ 569 $ (3,036,471 ) $ (4,429 ) Net income — — — 92,650 — Common stock dividends and equivalents — — — (26,665 ) — Issuance of common stock, net 8,240 — — — Tax payments for restricted stock upon vesting (9,064 ) — (2,467 ) — — Purchases of common stock (33,549 ) (1,782 ) (6,362 ) — Exercise of stock options 140,702 1 4,536 — — Non-cash — — 4,608 — — Currency translation adjustment — — — — 237 Balance at March 24, 2019 41,083,890 $ 411 $ 5,464 $ (2,976,848 ) $ (4,192 ) The following table summarizes changes in stockholders’ deficit for the first quarter of 2018. Common Stock Additional Paid-in Capital Retained Deficit Accumulated Loss Shares Amount Balance at December 31, 2017 42,898,329 $ 429 $ 5,654 $ (2,739,437 ) $ (2,030 ) Net income — — — 88,827 — Common stock dividends and equivalents — — — (23,549 ) — Issuance of common stock, net 9,282 — — — — Tax payments for restricted stock upon vesting (10,237 ) — (2,299 ) — — Purchases of common stock (448,008 ) (5 ) (12,997 ) (88,082 ) — Exercise of stock options 176,515 2 3,716 — — Non-cash — — 6,063 — — Adoption of revenue recognition accounting standard — — — (6,701 ) — Currency translation adjustment — — — — (455 ) Reclassification adjustment for stranded taxes — — — 351 (351 ) Balance at March 25, 2018 42,625,881 $ 426 $ 137 $ (2,768,591 ) $ (2,836 ) |
Dividends
Dividends | 3 Months Ended |
Mar. 24, 2019 | |
Statement of Stockholders' Equity [Abstract] | |
Dividends | 5. Dividends During the first quarter of 2019, on February 20, 2019 March 15, 2019 March 29, 2019 Subsequent to the first quarter of 2019, on April 23, 2019 June 14, 2019 June 28, 2019 During the first quarter of 2018, on February 14, 2018 March 15, 2018 March 30, 2018 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 24, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 6. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss was approximately $4.2 million at March 24, 2019 and was approximately $4.4 million as of December 30, 2018 and represented currency translation adjustments. During the first quarter of 2018, the Company adopted ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Open Market Share Repurchase Pr
Open Market Share Repurchase Program | 3 Months Ended |
Mar. 24, 2019 | |
Equity [Abstract] | |
Open Market Share Repurchase Program | 7. Open Market Share Repurchase Program During the first quarter of 2019, the Company repurchased and retired 33,549 shares of its common stock under its Board of Directors-approved open market share repurchase program for a total of approximately $8.1 million, or an average price of $242.74 per share. As of March 24, 2019, the Company had a total remaining authorized amount for share repurchases of approximately $150.6 million. During the first quarter of 2018, the Company repurchased and retired 448,008 shares of its common stock under its Board of Directors-approved open market share repurchase program for a total of approximately $101.1 million, or an average price of $225.63 per share. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 24, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. 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. 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 following tables summarize the carrying amounts and fair values of certain assets at March 24, 2019 and December 30, 2018: At March 24, 2019 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 48,467 $ 48,467 $ — $ — Restricted cash equivalents 90,014 90,014 — — Investments in marketable securities 10,187 10,187 — — Advertising fund cash equivalents, restricted 22,847 22,847 — — Advertising fund investments, restricted 50,152 50,152 — — At December 30, 2018 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 11,877 $ 11,877 $ — $ — Restricted cash equivalents 112,272 112,272 — — Investments in marketable securities 8,718 8,718 — — Advertising fund cash equivalents, restricted 31,547 31,547 — — Advertising fund investments, restricted 50,152 50,152 — — Management estimated the approximate fair values of the 2015 fixed rate notes, the 2017 fixed and floating rate notes and the 2018 fixed rate notes as follows: March 24, 2019 December 30, 2018 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year $ 778,000 $ 804,452 $ 780,000 $ 783,120 2017 Five-Year Fixed Rate Notes 591,000 582,726 592,500 575,910 2017 Ten-Year 985,000 991,895 987,500 956,888 2017 Five-Year Floating Rate Notes 295,500 294,318 296,250 295,065 2018 7.5-Year 421,813 427,297 422,875 416,955 2018 9.25-Year 397,000 404,940 398,000 396,010 At March 24 , 2019 , the Company had $ 25.0 million outstanding under its variable funding notes, which is a variable rate loan. The fair value of this loan approximates book value based on the borrowing rates currently available for variable rate loans obtained from third party lending institutions. This fair value represents a Level 2 measurement. The Company had $ 65.0 million outstanding under its variable funding notes at December 30 , 2018 . The 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 above. |
Contract Liabilities
Contract Liabilities | 3 Months Ended |
Mar. 24, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | 9. Contract Liabilities Contract liabilities consist of deferred franchise fees and deferred development fees. Changes in deferred franchise fees and deferred development fees for the first quarter of 2019 and the first quarter of 2018 were as follows: Fiscal Quarter Ended March 24, March 25, Deferred franchise fees and deferred development fees at beginning of period $ 19,900 $ 19,404 Revenue recognized during the period (1,361 ) (1,083 ) New deferrals due to cash received and other 900 613 Deferred franchise fees and deferred development fees at end of period $ 19,439 $ 18,934 |
Advertising Fund Assets
Advertising Fund Assets | 3 Months Ended |
Mar. 24, 2019 | |
Advertising Fund Assets [Abstract] | |
Advertising Fund Assets | 10. Advertising Fund Assets As of March 24, 2019, advertising fund assets, restricted of $98.1 million consisted of $84.4 million of cash, cash equivalents and investments, $12.1 million of accounts receivable and $1.6 million of prepaid expenses. As of March 24, 2019, advertising fund cash, cash equivalents and investments included $5.1 million of cash contributed from Company-owned stores that had not yet been expended. As of December 30, 2018, advertising fund assets, restricted of $112.7 million consisted of $95.1 million of cash, cash equivalents and investments, $15.3 million of accounts receivable and $2.3 million of prepaid expenses. As of December 30, 2018, advertising fund cash, cash equivalents and investments included $5.5 million of cash contributed from Company-owned stores that had not yet been expended. |
Leases
Leases | 3 Months Ended |
Mar. 24, 2019 | |
Leases [Abstract] | |
Leases | 11. Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters with expiration dates through 2034. The components of operating and finance lease cost for the first quarter of 2019 were as follows: Fiscal Quarter Ended March 24, 2019 Operating lease cost $ 10,796 Finance lease cost: Amortization of right-of-use 254 Interest on lease liabilities 479 Total finance lease cost $ 733 Rent expense totaled $16.4 million and $15.4 million in the first quarter of 2019 and 2018, respectively, and includes operating lease cost, as well as expense for non-lease 11 Supplemental balance sheet information related to the Company’s finance leases as of March 24, 2019 and December 30, 2018 was as follows: March 24, December 30, Land and buildings $ 22,182 $ 22,171 Accumulated depreciation and amortization (6,932 ) (6,678 ) Finance lease assets, net $ 15,250 $ 15,493 Current portion of long-term debt $ 659 $ 643 Long-term debt, less current portion 16,202 16,363 Total principal payable on finance leases $ 16,861 $ 17,006 Operating Finance Weighted average remaining lease term 7 years 14 years Weighted average discount rate 4.1 % 11.3 % Supplemental cash flow information related to leases for the first quarter of 2019 was as follows: Fiscal Quarter Ended March 24, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,690 Operating cash flows from finance leases 479 Financing cash flows from finance leases 155 Right-of-use Operating leases 12,977 Finance leases — During the first quarter of 2018, the Company renewed the lease of a supply chain center building and extended the term of the lease through 2033. As a result of the lease renewal, the Company recorded non-cash Maturities of lease liabilities as of March 24, 2019 were as follows: Operating Finance 2019, excluding the quarter ended March 24, 2019 $ 29,314 $ 1,799 2020 38,791 2,416 2021 35,915 2,434 2022 32,545 2,452 2023 29,188 2,475 Thereafter 107,039 23,792 Total future minimum rental commitments 272,792 35,368 Less – amounts representing interest (42,531 ) (18,507 ) Total lease liabilities $ 230,261 $ 16,861 12 Maturities of lease liabilities as of December 30, 2018 were as follows: Operating Finance 2019 $ 40,752 $ 2,396 2020 37,519 2,415 2021 34,538 2,433 2022 30,763 2,451 2023 27,388 2,474 Thereafter 100,310 23,781 Total future minimum rental commitments $ 271,270 35,950 Less – amounts representing interest (18,944 ) Total principal payable on finance leases $ 17,006 As of March 24, 2019, the Company has additional operating leases for supply chain center tractors and trailers and a new office building being constructed by the Company’s landlord that had not yet commenced with estimated future minimum rental commitments of approximately $43.0 million. The Company has also entered into an additional finance lease for a supply chain center that had not yet commenced with estimated future minimum rental commitments of approximately $28.7 million. These leases are expected to commence in 2019 with lease terms of up to 15 years. These undiscounted amounts are not included in the tables above. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees is $2.3 million and $2.4 million as of March 24, 2019 and December 30, 2018, respectively. We believe that none of these arrangements has or is likely to have a material effect on our results of operations, financial condition, revenues or expenses, capital expenditures or liquidity. |
Legal Matters
Legal Matters | 3 Months Ended |
Mar. 24, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | 12. Legal Matters On February 14, 2011, Domino’s Pizza LLC was named as a defendant in a lawsuit along with Fischler Enterprises of C.F., Inc., a franchisee, and Jeffrey S. Kidd, the franchisee’s delivery driver, filed by Yvonne Wiederhold, the plaintiff, as Personal Representative of the Estate of Richard E. Wiederhold, deceased. The case involved a traffic accident in which the franchisee’s delivery driver is alleged to have caused an accident involving a vehicle driven by Richard Wiederhold. Mr. Wiederhold sustained spinal injuries resulting in quadriplegia and passed away several months after the accident. The jury returned a $10.1 million judgment for the plaintiff where the Company and Mr. Kidd were found to be 90% liable (after certain offsets and other deductions the final verdict was $8.9 million). In the second quarter of 2016, the trial court ruled on all post-judgment motions and entered the judgment. The Company denies liability and in the third quarter of 2016 filed an appeal of the verdict on a variety of grounds. On May 11, 2018, the court of appeals reversed and remanded the case to the trial court for a new trial based on the plaintiff’s improper closing argument. The Company continues to deny liability in this matter. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 3 Months Ended |
Mar. 24, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 13. Supplemental Disclosures of Cash Flow Information The Company had non-cash |
Sale of Company-Owned Stores
Sale of Company-Owned Stores | 3 Months Ended |
Mar. 24, 2019 | |
Restructuring and Related Activities [Abstract] | |
Sale of Company-Owned Stores | 14. Sale of Company-owned Stores Subsequent to the first quarter of 2019, the Company entered into agreements to sell 59 U.S. Company-owned stores to certain of its existing franchisees. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 24, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 15. New Accounting Pronouncements Recently Adopted Accounting Standard Accounting Standards Update 2016-02, In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) The adoption of ASC 842 had a material impact on the Company’s assets and liabilities due to the recognition of operating lease right-of- use The effects of the changes made to the Company’s condensed consolidated balance sheet as of December 31, 2018 for the adoption of ASC 842 were as follows: Balance at Adjustments Due to ASC 842 Balance at Assets Current assets: Prepaid expenses and other $ 25,710 $ (35 ) $ 25,675 Property, plant and equipment: Construction in progress 31,822 (1,904 ) 29,918 Other assets: Operating lease right-of-use — 218,860 218,860 Liabilities and stockholders’ deficit Current liabilities: Operating lease liabilities — 32,033 32,033 Other accrued liabilities 55,001 (136 ) 54,865 Long-term liabilities: Operating lease liabilities — 194,736 194,736 Other accrued liabilities 40,807 (9,712 ) 31,095 On December 31, 2018, the Company recorded an adjustment of $226.8 million for operating lease right-of-use right-of-use build-to-suit 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 2016-13, In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”). 2016-13 2016-13 |
Basis of Presentation and Upd_2
Basis of Presentation and Updates to Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 24, 2019 | |
Accounting Policies [Abstract] | |
Leases | Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters. The Company determines whether an arrangement is or contains a lease at contract inception. The majority of the Company’s leases are classified as operating leases, which are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the Company’s condensed consolidated balance sheet. Finance leases are included in property and equipment, current portion of long-term debt and long-term debt on the Company’s condensed consolidated balance sheet. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding 12 months. Minimum lease payments include only the fixed lease component of the agreement, as well as any variable rate payments that depend on an index, initially measured using the index at the lease commencement date. Lease terms may include options to renew when it is reasonably certain that the Company will exercise that option. The Company estimates its incremental borrowing rate for each lease using a portfolio approach based on the respective weighted average term of the agreements. This estimation considers the market rates of the Company’s outstanding collateralized borrowings and interpolations of rates outside of the terms of the outstanding borrowings, including comparisons to comparable borrowings of similarly-rated companies with longer term borrowings. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Amortization expense for finance leases is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense, while interest expense for finance leases is recognized using the effective interest method. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 24, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | The following table summarizes revenues, income from operations 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. Fiscal Quarters Ended March 24, 2019 and March 25, 2018 U.S. Supply International Intersegment Other Total Revenues 2019 $ 309,279 $ 505,681 $ 54,584 $ (33,581 ) $ — $ 835,963 2018 292,887 473,956 52,421 (33,893 ) — 785,371 Income from operations 2019 $ 80,615 $ 42,021 $ 42,754 N/A $ (21,886 ) $ 143,504 2018 75,289 37,372 41,524 N/A (20,709 ) 133,476 Segment Income 2019 $ 83,598 $ 46,047 $ 42,800 N/A $ (10,394 ) $ 162,051 2018 78,344 40,156 41,572 N/A (9,099 ) 150,973 |
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 March 24, March 25, Total Segment Income $ 162,051 $ 150,973 Depreciation and amortization (13,790 ) (11,069 ) Loss on sale/disposal of assets (149 ) (365 ) Non-cash (4,608 ) (6,063 ) Income from operations 143,504 133,476 Interest income 693 480 Interest expense (35,054 ) (30,286 ) Income before provision for income taxes $ 109,143 $ 103,670 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 24, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Fiscal Quarter Ended March 24, March 25, Net income available to common stockholders and diluted $ 92,650 $ 88,827 Basic weighted average number of shares 40,865,532 42,822,112 Earnings per share – basic $ 2.27 $ 2.07 Diluted weighted average number of shares 42,202,429 44,377,509 Earnings per share – diluted $ 2.20 $ 2.00 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 3 Months Ended |
Mar. 24, 2019 | |
Federal Home Loan Banks [Abstract] | |
Changes in Stockholders' Deficit | The following table summarizes changes in stockholders’ deficit for the first quarter of 2019. Common Stock Additional Paid-in Capital Retained Deficit Accumulated Loss Shares Amount Balance at December 30, 2018 40,977,561 $ 410 $ 569 $ (3,036,471 ) $ (4,429 ) Net income — — — 92,650 — Common stock dividends and equivalents — — — (26,665 ) — Issuance of common stock, net 8,240 — — — Tax payments for restricted stock upon vesting (9,064 ) — (2,467 ) — — Purchases of common stock (33,549 ) (1,782 ) (6,362 ) — Exercise of stock options 140,702 1 4,536 — — Non-cash — — 4,608 — — Currency translation adjustment — — — — 237 Balance at March 24, 2019 41,083,890 $ 411 $ 5,464 $ (2,976,848 ) $ (4,192 ) The following table summarizes changes in stockholders’ deficit for the first quarter of 2018. Common Stock Additional Paid-in Capital Retained Deficit Accumulated Loss Shares Amount Balance at December 31, 2017 42,898,329 $ 429 $ 5,654 $ (2,739,437 ) $ (2,030 ) Net income — — — 88,827 — Common stock dividends and equivalents — — — (23,549 ) — Issuance of common stock, net 9,282 — — — — Tax payments for restricted stock upon vesting (10,237 ) — (2,299 ) — — Purchases of common stock (448,008 ) (5 ) (12,997 ) (88,082 ) — Exercise of stock options 176,515 2 3,716 — — Non-cash — — 6,063 — — Adoption of revenue recognition accounting standard — — — (6,701 ) — Currency translation adjustment — — — — (455 ) Reclassification adjustment for stranded taxes — — — 351 (351 ) Balance at March 25, 2018 42,625,881 $ 426 $ 137 $ (2,768,591 ) $ (2,836 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 24, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | 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 following tables summarize the carrying amounts and fair values of certain assets at March 24, 2019 and December 30, 2018: At March 24, 2019 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 48,467 $ 48,467 $ — $ — Restricted cash equivalents 90,014 90,014 — — Investments in marketable securities 10,187 10,187 — — Advertising fund cash equivalents, restricted 22,847 22,847 — — Advertising fund investments, restricted 50,152 50,152 — — At December 30, 2018 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 11,877 $ 11,877 $ — $ — Restricted cash equivalents 112,272 112,272 — — Investments in marketable securities 8,718 8,718 — — Advertising fund cash equivalents, restricted 31,547 31,547 — — Advertising fund investments, restricted 50,152 50,152 — — |
Schedule of Estimated Fair Value | Management estimated the approximate fair values of the 2015 fixed rate notes, the 2017 fixed and floating rate notes and the 2018 fixed rate notes as follows: March 24, 2019 December 30, 2018 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year $ 778,000 $ 804,452 $ 780,000 $ 783,120 2017 Five-Year Fixed Rate Notes 591,000 582,726 592,500 575,910 2017 Ten-Year 985,000 991,895 987,500 956,888 2017 Five-Year Floating Rate Notes 295,500 294,318 296,250 295,065 2018 7.5-Year 421,813 427,297 422,875 416,955 2018 9.25-Year 397,000 404,940 398,000 396,010 |
Contract Liabilities (Tables)
Contract Liabilities (Tables) | 3 Months Ended |
Mar. 24, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees | Contract liabilities consist of deferred franchise fees and deferred development fees. Changes in deferred franchise fees and deferred development fees for the first quarter of 2019 and the first quarter of 2018 were as follows: Fiscal Quarter Ended March 24, March 25, Deferred franchise fees and deferred development fees at beginning of period $ 19,900 $ 19,404 Revenue recognized during the period (1,361 ) (1,083 ) New deferrals due to cash received and other 900 613 Deferred franchise fees and deferred development fees at end of period $ 19,439 $ 18,934 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 24, 2019 | |
Leases [Abstract] | |
Components Of Operating And Finance Lease Cost | The components of operating and finance lease cost for the first quarter of 2019 were as follows: Fiscal Quarter Ended March 24, 2019 Operating lease cost $ 10,796 Finance lease cost: Amortization of right-of-use 254 Interest on lease liabilities 479 Total finance lease cost $ 733 |
Schedule of Supplemental Balance Sheet Information Related To Finance Leases | Supplemental balance sheet information related to the Company’s finance leases as of March 24, 2019 and December 30, 2018 was as follows: March 24, December 30, Land and buildings $ 22,182 $ 22,171 Accumulated depreciation and amortization (6,932 ) (6,678 ) Finance lease assets, net $ 15,250 $ 15,493 Current portion of long-term debt $ 659 $ 643 Long-term debt, less current portion 16,202 16,363 Total principal payable on finance leases $ 16,861 $ 17,006 Operating Finance Weighted average remaining lease term 7 years 14 years Weighted average discount rate 4.1 % 11.3 % |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the first quarter of 2019 was as follows: Fiscal Quarter Ended March 24, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,690 Operating cash flows from finance leases 479 Financing cash flows from finance leases 155 Right-of-use Operating leases 12,977 Finance leases — |
Schedule Of Maturities Of Operating And Finance Leases Liabilities | Maturities of lease liabilities as of March 24, 2019 were as follows: Operating Finance 2019, excluding the quarter ended March 24, 2019 $ 29,314 $ 1,799 2020 38,791 2,416 2021 35,915 2,434 2022 32,545 2,452 2023 29,188 2,475 Thereafter 107,039 23,792 Total future minimum rental commitments 272,792 35,368 Less – amounts representing interest (42,531 ) (18,507 ) Total lease liabilities $ 230,261 $ 16,861 12 Maturities of lease liabilities as of December 30, 2018 were as follows: Operating Finance 2019 $ 40,752 $ 2,396 2020 37,519 2,415 2021 34,538 2,433 2022 30,763 2,451 2023 27,388 2,474 Thereafter 100,310 23,781 Total future minimum rental commitments $ 271,270 35,950 Less – amounts representing interest (18,944 ) Total principal payable on finance leases $ 17,006 |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 24, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Cumulative Effects of Changes Made to Consolidated Balance Sheet | The effects of the changes made to the Company’s condensed consolidated balance sheet as of December 31, 2018 for the adoption of ASC 842 were as follows: Balance at Adjustments Due to ASC 842 Balance at Assets Current assets: Prepaid expenses and other $ 25,710 $ (35 ) $ 25,675 Property, plant and equipment: Construction in progress 31,822 (1,904 ) 29,918 Other assets: Operating lease right-of-use — 218,860 218,860 Liabilities and stockholders’ deficit Current liabilities: Operating lease liabilities — 32,033 32,033 Other accrued liabilities 55,001 (136 ) 54,865 Long-term liabilities: Operating lease liabilities — 194,736 194,736 Other accrued liabilities 40,807 (9,712 ) 31,095 |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 24, 2019 | Mar. 25, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 835,963 | $ 785,371 |
Income from operations | 143,504 | 133,476 |
Segment Income | 162,051 | 150,973 |
Supply Chain [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 472,100 | 440,063 |
Operating Segments [Member] | U.S. Stores [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 309,279 | 292,887 |
Income from operations | 80,615 | 75,289 |
Segment Income | 83,598 | 78,344 |
Operating Segments [Member] | Supply Chain [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 505,681 | 473,956 |
Income from operations | 42,021 | 37,372 |
Segment Income | 46,047 | 40,156 |
Operating Segments [Member] | International Franchise [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 54,584 | 52,421 |
Income from operations | 42,754 | 41,524 |
Segment Income | 42,800 | 41,572 |
Intersegment Revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | (33,581) | (33,893) |
Segment Reconciling [Member] | ||
Segment Reporting Information [Line Items] | ||
Income from operations | (21,886) | (20,709) |
Segment Income | $ (10,394) | $ (9,099) |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 24, 2019 | Mar. 25, 2018 | |
Segment Reconciliation [Abstract] | ||
Total Segment Income | $ 162,051 | $ 150,973 |
Depreciation and amortization | (13,790) | (11,069) |
Loss on sale/disposal of assets | (149) | (365) |
Non-cash compensation expense | (4,608) | (6,063) |
Income from operations | 143,504 | 133,476 |
Interest income | 693 | 480 |
Interest expense | (35,054) | (30,286) |
Income before provision for income taxes | $ 109,143 | $ 103,670 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 24, 2019 | Mar. 25, 2018 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders - basic and diluted | $ 92,650 | $ 88,827 |
Basic weighted average number of shares | 40,865,532 | 42,822,112 |
Earnings per share – basic | $ 2.27 | $ 2.07 |
Diluted weighted average number of shares | 42,202,429 | 44,377,509 |
Earnings per share – diluted | $ 2.20 | $ 2 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 24, 2019 | Mar. 25, 2018 | |
Stock Option [Member] | ||
Earnings Per Share [Line Items] | ||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 71,880 | 87,420 |
Restricted Performance Shares [Member] | ||
Earnings Per Share [Line Items] | ||
Securities excluded from computation of earnings per share, amount unvested | 96,712 | 117,062 |
Restricted Stock [Member] | ||
Earnings Per Share [Line Items] | ||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 1,800 |
Changes in Stockholders' Defici
Changes in Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 24, 2019 | Mar. 25, 2018 | ||
Stockholders' Deficit [Line Items] | |||
Beginning Balance | [1] | $ (3,039,921) | |
Net income | 92,650 | $ 88,827 | |
Ending Balance | $ (2,975,165) | ||
Common Stock [Member] | |||
Stockholders' Deficit [Line Items] | |||
Beginning Balance, (in shares) | 40,977,561 | 42,898,329 | |
Beginning Balance | $ 410 | $ 429 | |
Issuance of common stock, net, (in shares) | 8,240 | 9,282 | |
Tax payments for restricted stock upon vesting, (in shares) | (9,064) | (10,237) | |
Purchases of common stock, (in shares) | (33,549) | (448,008) | |
Purchases of common stock | $ (5) | ||
Exercise of stock options, (in shares) | 140,702 | 176,515 | |
Exercise of stock options | $ 1 | $ 2 | |
Ending Balance, (in shares) | 41,083,890 | 42,625,881 | |
Ending Balance | $ 411 | $ 426 | |
Additional Paid-in Capital [Member] | |||
Stockholders' Deficit [Line Items] | |||
Beginning Balance | 569 | 5,654 | |
Tax payments for restricted stock upon vesting | (2,467) | (2,299) | |
Purchases of common stock | (1,782) | (12,997) | |
Exercise of stock options | 4,536 | 3,716 | |
Non-cash compensation expense | 4,608 | 6,063 | |
Ending Balance | 5,464 | 137 | |
Retained Deficit [Member] | |||
Stockholders' Deficit [Line Items] | |||
Beginning Balance | (3,036,471) | (2,739,437) | |
Net income | 92,650 | 88,827 | |
Common stock dividends and equivalents | (26,665) | (23,549) | |
Purchases of common stock | (6,362) | (88,082) | |
Adoption of revenue recognition accounting standard | (6,701) | ||
Reclassification adjustment for stranded taxes | 351 | ||
Ending Balance | (2,976,848) | (2,768,591) | |
Accumulated Other Comprehensive Loss [Member] | |||
Stockholders' Deficit [Line Items] | |||
Beginning Balance | (4,429) | (2,030) | |
Currency translation adjustment | 237 | (455) | |
Reclassification adjustment for stranded taxes | (351) | ||
Ending Balance | $ (4,192) | $ (2,836) | |
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Dividends - Additional Informat
Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 23, 2019 | Feb. 20, 2019 | Feb. 14, 2018 | Mar. 24, 2019 | Dec. 30, 2018 | [1] |
Dividends Payable [Line Items] | ||||||
Record date of dividend | Mar. 15, 2019 | Mar. 15, 2018 | ||||
Dividends declared per share | $ 0.65 | $ 0.55 | ||||
Common stock dividends accrued | $ 27,156 | $ 581 | ||||
Dividend declared date | Feb. 20, 2019 | Feb. 14, 2018 | ||||
Dividend payable date | Mar. 29, 2019 | Mar. 30, 2018 | ||||
Subsequent Event [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Record date of dividend | Jun. 14, 2019 | |||||
Dividends declared per share | $ 0.65 | |||||
Dividend declared date | Apr. 23, 2019 | |||||
Dividend payable date | Jun. 28, 2019 | |||||
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 24, 2019 | Mar. 25, 2018 | Dec. 30, 2018 | [1] | |
Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive loss | $ (4,192,000) | $ (4,429,000) | ||
Reclassification losses from accumulated other comprehensive loss to net income | $ 0 | $ 0 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Other Comprehensive Income [Line Items] | ||||
Reclassification of certain tax effects from accumulated other comprehensive income | $ (351,000) | |||
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Open Market Share Repurchase _2
Open Market Share Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 24, 2019 | Mar. 25, 2018 | |
Share Repurchases [Line Items] | ||
Common stock repurchased and retired (in shares) | 33,549 | 448,008 |
Payments for purchases of common stock | $ 8,144 | $ 101,084 |
Common stock repurchased and retired during period, average price | $ 242.74 | $ 225.63 |
Stock repurchase remaining authorized repurchase amount | $ 150,600 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Mar. 24, 2019 | Dec. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 48,467 | $ 11,877 |
Restricted cash equivalents, carrying amount | 90,014 | 112,272 |
Investments in marketable securities, carrying amount | 10,187 | 8,718 |
Advertising fund cash equivalents, restricted, carrying amount | 22,847 | 31,547 |
Advertising fund investments, restricted, carrying amount | 50,152 | 50,152 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 48,467 | 11,877 |
Restricted cash equivalents, carrying amount | 90,014 | 112,272 |
Investments in marketable securities, carrying amount | 10,187 | 8,718 |
Advertising fund cash equivalents, restricted, fair value | 22,847 | 31,547 |
Advertising fund investments, restricted, fair value | $ 50,152 | $ 50,152 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Mar. 24, 2019 | Dec. 30, 2018 |
2015 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 778,000 | $ 780,000 |
Fair Value | 804,452 | 783,120 |
2017 Five-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 591,000 | 592,500 |
Fair Value | 582,726 | 575,910 |
2017 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 985,000 | 987,500 |
Fair Value | 991,895 | 956,888 |
2017 Five-Year Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 295,500 | 296,250 |
Fair Value | 294,318 | 295,065 |
2018 7.5-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 421,813 | 422,875 |
Fair Value | 427,297 | 416,955 |
2018 9.25-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 397,000 | 398,000 |
Fair Value | $ 404,940 | $ 396,010 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 24, 2019 | Dec. 30, 2018 | |
Outstanding Borrowings Amount | $ 25 | $ 65 |
Variable Funding Note [Member] | ||
Long-term Line of Credit, Noncurrent | $ 25 | $ 65 |
Schedule of Contract Liabilitie
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 24, 2019 | Mar. 25, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred franchise fees and deferred development fees at beginning of period | $ 19,900 | $ 19,404 |
Revenue recognized during the period | (1,361) | (1,083) |
New deferrals due to cash received and other | 900 | 613 |
Deferred franchise fees and deferred development fees at end of period | $ 19,439 | $ 18,934 |
Advertising Fund Assets - Addit
Advertising Fund Assets - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 24, 2019 | Dec. 30, 2018 | |
Advertising Fund Assets Restricted | $ 98,098 | $ 112,744 | [1] |
Domestic Stores [Member] | Domestic Franchise [Member] | Cash and Investments [Member] | |||
Advertising Fund Assets Restricted | 84,400 | 95,100 | |
Domestic Stores [Member] | Domestic Franchise [Member] | Prepaid Expenses [Member] | |||
Advertising Fund Assets Restricted | 1,600 | 2,300 | |
Domestic Stores [Member] | Domestic Franchise [Member] | Accounts Receivable [Member] | |||
Advertising Fund Assets Restricted | 12,100 | 15,300 | |
Domestic Stores [Member] | Domestic Company Owned Stores [Member] | |||
Cash Contributed from Company Owned Store | $ 5,100 | $ 5,500 | |
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Components Of Operating And Fin
Components Of Operating And Finance Lease Cost (Detail) $ in Thousands | 3 Months Ended |
Mar. 24, 2019USD ($) | |
Operating lease cost | $ 10,796 |
Finance lease cost: | |
Amortization of right-of-use assets | 254 |
Interest on lease liabilities | 479 |
Total finance lease cost | $ 733 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related To The Company's Finance Leases (Detail) - USD ($) $ in Thousands | Mar. 24, 2019 | Dec. 30, 2018 |
Land and buildings | $ 22,182 | $ 22,171 |
Accumulated depreciation and amortization | (6,932) | (6,678) |
Finance lease assets, net | 15,250 | 15,493 |
Current portion of long-term debt | 659 | 643 |
Long-term debt, less current portion | 16,202 | 16,363 |
Total principal payable on finance leases | $ 16,861 | $ 17,006 |
Finance Lease, Weighted Average Remaining Lease Term | 14 years | |
Finance Lease, Weighted Average Discount Rate, Percent | 11.30% | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.10% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related To Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 24, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 10,690 |
Operating cash flows from finance leases | 479 |
Financing cash flows from finance leases | 155 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 12,977 |
Maturities Of Lease Liabilities
Maturities Of Lease Liabilities (Detail) - USD ($) $ in Thousands | Mar. 24, 2019 | Dec. 31, 2018 | Dec. 30, 2018 |
2019, excluding the quarter ended March 24, 2019 | $ 29,314 | $ 40,752 | |
2020 | 38,791 | 37,519 | |
2021 | 35,915 | 34,538 | |
2022 | 32,545 | 30,763 | |
2023 | 29,188 | 27,388 | |
Thereafter | 107,039 | 100,310 | |
Total future minimum rental commitments | 272,792 | 271,270 | |
Less – amounts representing interest | (42,531) | ||
Total lease liabilities | 230,261 | $ 226,800 | |
2019 | 1,799 | 2,396 | |
2020 | 2,416 | 2,415 | |
2021 | 2,434 | 2,433 | |
2022 | 2,452 | 2,451 | |
2023 | 2,475 | 2,474 | |
Thereafter | 23,792 | 23,781 | |
Total future minimum rental commitments | 35,368 | 35,950 | |
Less – amounts representing interest | (18,507) | (18,944) | |
Total principal payable on finance leases | $ 16,861 | $ 17,006 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 24, 2019 | Mar. 25, 2018 | Dec. 30, 2018 | |
Rent Expenses | $ 16.4 | $ 15.4 | |
Finance Lease | $ 2.6 | ||
Potential future payments | 2.3 | $ 2.4 | |
Operating Lease [Member] | |||
Future minimum rental commitments | $ 43 | ||
Lease Term | 15 years | ||
Finance Lease [Member] | |||
Future minimum rental commitments | $ 28.7 | ||
Lease Term | 15 years |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) - Yvonne Wiederhold [Member] $ in Millions | Feb. 14, 2011USD ($) |
Legal Settlement By Party [Line Items] | |
Amount delivered for plaintiff | $ 10.1 |
Percentage liable by company for plaintiff | 90.00% |
Litigation settlement, amount | $ 8.9 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 24, 2019 | Dec. 30, 2018 | |
Schedule of Cash Flow, Supplemental [Line Items] | ||
Capital expenditure accrual | $ 2.6 | $ 3.8 |
Sale of Company-Owned Stores -
Sale of Company-Owned Stores - Additional Information (Detail) | Apr. 24, 2019Store |
Subsequent Event [Member] | |
Number of company-owned stores sold | 59 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 24, 2019 | Dec. 31, 2018 | Dec. 30, 2018 | [1] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 222,005 | $ 226,800 | $ 0 | |
Operating Lease, Liability | 230,261 | 226,800 | ||
Derecognition of Liabilities | $ 1,900 | |||
Other Accrued Liabilities And Prepaid Expenses [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification of Accrued Liabilities to the Right of Use Asset | $ 7,900 | |||
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
New Accounting Pronouncements_2
New Accounting Pronouncements - Cumulative Effects of Changes Made to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 24, 2019 | Dec. 31, 2018 | Dec. 30, 2018 | |
Current assets: | ||||
Prepaid expenses and other | $ 19,544 | $ 25,710 | [1] | |
Property, plant and equipment: | ||||
Construction in progress | 27,832 | 31,822 | [1] | |
Other assets: | ||||
Operating lease right-of-use assets | 222,005 | $ 226,800 | 0 | [1] |
Current liabilities: | ||||
Operating lease liabilities | 31,753 | 0 | [1] | |
Other accrued liabilities | 117,233 | 121,363 | [1] | |
Long-term liabilities: | ||||
Operating lease liabilities | 198,508 | 0 | [1] | |
Other accrued liabilities | $ 32,542 | 40,807 | [1] | |
Scenario, Previously Reported [Member] | ||||
Current assets: | ||||
Prepaid expenses and other | 25,710 | |||
Property, plant and equipment: | ||||
Construction in progress | 31,822 | |||
Current liabilities: | ||||
Other accrued liabilities | 55,001 | |||
Long-term liabilities: | ||||
Other accrued liabilities | 40,807 | |||
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Current assets: | ||||
Prepaid expenses and other | (35) | |||
Property, plant and equipment: | ||||
Construction in progress | (1,904) | |||
Other assets: | ||||
Operating lease right-of-use assets | 218,860 | |||
Current liabilities: | ||||
Operating lease liabilities | 32,033 | |||
Other accrued liabilities | (136) | |||
Long-term liabilities: | ||||
Operating lease liabilities | 194,736 | |||
Other accrued liabilities | $ (9,712) | |||
Scenario As Restated [Member] | ||||
Current assets: | ||||
Prepaid expenses and other | 25,675 | |||
Property, plant and equipment: | ||||
Construction in progress | 29,918 | |||
Other assets: | ||||
Operating lease right-of-use assets | 218,860 | |||
Current liabilities: | ||||
Operating lease liabilities | 32,033 | |||
Other accrued liabilities | 54,865 | |||
Long-term liabilities: | ||||
Operating lease liabilities | 194,736 | |||
Other accrued liabilities | $ 31,095 | |||
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |