Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 16, 2019 | Jul. 09, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Period End Date | Jun. 16, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | DOMINOS PIZZA INC | |
Entity Central Index Key | 0001286681 | |
Entity File Number | 001-32242 | |
Entity Tax Identification Number | 38-2511577 | |
Entity Incorporation, State or Country Code | DE | |
Current Fiscal Year End Date | --12-29 | |
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 | 41,232,984 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 16, 2019 | Dec. 30, 2018 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 108,259 | $ 25,438 | |
Restricted cash and cash equivalents | 152,713 | 166,993 | |
Accounts receivable, net | 182,904 | 190,091 | |
Inventories | 44,281 | 45,975 | |
Prepaid expenses and other | 37,578 | 25,710 | |
Advertising fund assets, restricted | 117,712 | 112,744 | |
Total current assets | 643,447 | 566,951 | |
Property, plant and equipment: | |||
Land and buildings | 41,385 | 41,147 | |
Leasehold and other improvements | 155,532 | 170,498 | |
Equipment | 237,088 | 243,654 | |
Construction in progress | 29,314 | 31,822 | |
Property, plant and equipment, Gross | 463,319 | 487,121 | |
Accumulated depreciation and amortization | (249,184) | (252,182) | |
Property, plant and equipment, net | 214,135 | 234,939 | |
Other assets: | |||
Operating lease right-of-use assets | 211,204 | ||
Goodwill | 13,542 | 14,919 | |
Capitalized software, net | 69,629 | 63,809 | |
Other assets | 21,965 | 21,241 | |
Deferred income taxes | 3,245 | 5,526 | |
Total other assets | 319,585 | 105,495 | |
Total assets | 1,177,167 | 907,385 | |
Current liabilities: | |||
Current portion of long-term debt | 35,919 | 35,893 | |
Accounts payable | 82,456 | 92,546 | |
Operating lease liabilities | 30,156 | ||
Insurance reserves | 22,078 | 22,210 | |
Dividends payable | 27,355 | 581 | |
Advertising fund liabilities | 113,416 | 107,150 | |
Other accrued liabilities | 101,526 | 121,363 | |
Total current liabilities | 412,906 | 379,743 | |
Long-term liabilities: | |||
Long-term debt, less current portion | 3,414,988 | 3,495,691 | |
Operating lease liabilities | 188,305 | ||
Insurance reserves | 33,507 | 31,065 | |
Other accrued liabilities | 31,747 | 40,807 | |
Total long-term liabilities | 3,668,547 | 3,567,563 | |
Stockholders' deficit: | |||
Common stock | 412 | 410 | |
Additional paid-in capital | 10,788 | 569 | |
Retained deficit | (2,911,278) | (3,036,471) | |
Accumulated other comprehensive loss | (4,208) | (4,429) | |
Total stockholders' deficit | (2,904,286) | (3,039,921) | |
Total liabilities and stockholders' deficit | $ 1,177,167 | $ 907,385 | |
[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 | 6 Months Ended | ||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | |
Revenues: | ||||
Revenue | $ 811,647 | $ 779,396 | $ 1,647,610 | $ 1,564,767 |
Cost of sales: | ||||
Cost of sales | 494,976 | 485,816 | 1,008,650 | 971,322 |
Operating margin | 316,671 | 293,580 | 638,960 | 593,445 |
General and administrative | 89,248 | 86,506 | 178,912 | 170,684 |
U.S. franchise advertising | 88,500 | 80,929 | 177,621 | 163,140 |
Income from operations | 138,923 | 126,145 | 282,427 | 259,621 |
Interest income | 922 | 1,179 | 1,615 | 1,659 |
Interest expense | (33,866) | (36,127) | (68,920) | (66,413) |
Income before provision for income taxes | 105,979 | 91,197 | 215,122 | 194,867 |
Provision for income taxes | 13,620 | 13,789 | 30,113 | 28,632 |
Net income | $ 92,359 | $ 77,408 | $ 185,009 | $ 166,235 |
Earnings per share: | ||||
Common stock - basic | $ 2.25 | $ 1.84 | $ 4.52 | $ 3.92 |
Common stock - diluted | $ 2.19 | $ 1.78 | $ 4.38 | $ 3.78 |
U.S. Stores [Member] | U.S. Company-owned stores [Member] | ||||
Revenues: | ||||
Revenue | $ 105,001 | $ 118,795 | $ 228,451 | $ 239,981 |
Cost of sales: | ||||
Cost of sales | 80,366 | 91,976 | 175,906 | 185,014 |
U.S. Stores [Member] | U.S. franchise royalties and fees [Member] | ||||
Revenues: | ||||
Revenue | 95,594 | 87,418 | 192,302 | 176,908 |
U.S. Stores [Member] | U.S. franchise advertising [Member] | ||||
Revenues: | ||||
Revenue | 88,500 | 80,929 | 177,621 | 163,140 |
Supply Chain [Member] | ||||
Revenues: | ||||
Revenue | 467,577 | 440,917 | 939,677 | 880,980 |
Cost of sales: | ||||
Cost of sales | 414,610 | 393,840 | 832,744 | 786,308 |
International Franchise [Member] | International franchise royalties and fees [Member] | ||||
Revenues: | ||||
Revenue | $ 54,975 | $ 51,337 | $ 109,559 | $ 103,758 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 92,359 | $ 77,408 | $ 185,009 | $ 166,235 |
Currency translation adjustment | (16) | (603) | 221 | (1,058) |
Comprehensive income | $ 92,343 | $ 76,805 | $ 185,230 | $ 165,177 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | ||
Cash flows from operating activities: | |||||
Net income | $ 92,359 | $ 77,408 | $ 185,009 | $ 166,235 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 14,060 | 12,240 | 27,850 | 23,310 | |
Loss on sale/disposal of assets | 2,680 | 154 | 2,829 | 519 | |
Amortization of debt issuance costs | 2,198 | 5,469 | |||
Provision for deferred income taxes | 2,276 | 1,484 | |||
Non-cash compensation expense | 3,981 | 5,379 | 8,589 | 11,443 | |
Excess tax benefits from equity-based compensation | (18,446) | (15,318) | |||
Other | 550 | 111 | |||
Changes in operating assets and liabilities | (10,713) | (50,165) | |||
Changes in advertising fund assets and liabilities, restricted | 1,411 | 11,624 | |||
Net cash provided by operating activities | 201,553 | 154,712 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (25,708) | (37,290) | |||
Proceeds from sale of assets | 8,161 | 323 | |||
Maturities of advertising fund investments, restricted | 15,152 | 29,007 | |||
Purchases of advertising fund investments, restricted | (35,152) | ||||
Other | (132) | (672) | |||
Net cash used in investing activities | (2,527) | (43,784) | |||
Cash flows from financing activities: | |||||
Proceeds from issuance of long-term debt | 905,000 | ||||
Repayments of long-term debt and finance lease obligations | (82,886) | (586,133) | |||
Proceeds from exercise of stock options | 9,290 | 5,206 | |||
Purchases of common stock | (11,453) | (320,067) | |||
Tax payments for restricted stock upon vesting | (2,567) | (2,318) | |||
Payments of common stock dividends and equivalents | (26,680) | (23,538) | |||
Cash paid for financing costs | (8,207) | ||||
Net cash used in financing activities | (114,296) | (30,057) | |||
Effect of exchange rate changes on cash | 111 | (132) | |||
Change in cash and cash equivalents, restricted cash and cash equivalents | 84,841 | 80,739 | |||
Cash and cash equivalents, beginning of period | 25,438 | [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 | 108,259 | 157,788 | 108,259 | 157,788 | |
Restricted cash and cash equivalents, end of period | 152,713 | 144,970 | 152,713 | 144,970 | |
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 61,288 | 32,827 | 61,288 | 32,827 | |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ 322,260 | $ 335,585 | $ 322,260 | $ 335,585 | |
[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 | 6 Months Ended |
Jun. 16, 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 June 16, 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 assets and operating lease liabilities in the Company’s condensed consolidated balance sheet. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt on the Company’s condensed consolidated balance sheet. Right-of-use 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 months) are expensed as incurred. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 16, 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 June 16, 2019 and June 17, 2018 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2019 $ 289,095 $ 495,989 $ 54,975 $ (28,412 ) $ — $ 811,647 2018 287,142 474,471 51,337 (33,554 ) — 779,396 Income from operations 2019 $ 77,050 $ 41,305 $ 41,432 N/A $ (20,864 ) $ 138,923 2018 73,193 36,494 39,104 N/A (22,646 ) 126,145 Segment Income 2019 $ 82,006 $ 45,382 $ 41,491 N/A $ (9,235 ) $ 159,644 2018 76,087 39,454 39,150 N/A (10,241 ) 144,450 Two Fiscal Quarters Ended June 16, 2019 and June 17, 2018 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2019 $ 598,374 $ 1,001,670 $ 109,559 $ (61,993 ) $ — $ 1,647,610 2018 580,029 948,426 103,758 (67,446 ) — 1,564,767 Income from operations 2019 $ 157,664 $ 83,327 $ 84,186 N/A $ (42,750 ) $ 282,427 2018 148,481 73,866 80,628 N/A (43,354 ) 259,621 Segment Income 2019 $ 165,604 $ 91,429 $ 84,290 N/A $ (19,628 ) $ 321,695 2018 154,431 79,610 80,721 N/A (19,337 ) 295,425 The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Two Fiscal Quarters Ended June 16, June 17, June 16, June 17, 2019 2018 2019 2018 Total Segment Income $ 159,644 $ 144,450 $ 321,695 $ 295,425 Depreciation and amortization (14,060 ) (12,240 ) (27,850 ) (23,310 ) Loss on sale/disposal of assets (2,680 ) (154 ) (2,829 ) (519 ) Non-cash (3,981 ) (5,379 ) (8,589 ) (11,443 ) Recapitalization-related expenses — (532 ) — (532 ) Income from operations 138,923 126,145 282,427 259,621 Interest income 922 1,179 1,615 1,659 Interest expense (33,866 ) (36,127 ) (68,920 ) (66,413 ) Income before provision for income taxes $ 105,979 $ 91,197 $ 215,122 $ 194,867 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 16, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Fiscal Quarter Ended Two Fiscal Quarters Ended June 16, June 17, June 16, June 17, 2019 2018 2019 2018 Net income available to common stockholders - basic and diluted $ 92,359 $ 77,408 $ 185,009 $ 166,235 Basic weighted average number of shares 41,023,269 42,044,035 40,944,400 42,433,073 Earnings per share – basic $ 2.25 $ 1.84 $ 4.52 $ 3.92 Diluted weighted average number of shares 42,236,507 43,582,996 42,219,649 43,981,253 Earnings per share – diluted $ 2.19 $ 1.78 $ 4.38 $ 3.78 The denominators used in calculating diluted earnings per share for the second quarter and two fiscal quarters of 2019 each do not include 71,180 options to purchase common stock, as the effect of including these options would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the second quarter and two fiscal quarters of 2019 93,412 The denominators used in calculating diluted earnings per share for common stock for the second quarter and two fiscal quarters of 2018 do not include 68,760 90,670 restricted performance shares, as the performance targets for these awards had not yet been met. |
Changes in Stockholders' Defici
Changes in Stockholders' Deficit | 6 Months Ended |
Jun. 16, 2019 | |
Federal Home Loan Banks [Abstract] | |
Changes in Stockholders' Deficit | 4. Changes in Stockholders’ Deficit The following table summarizes changes in stockholders’ deficit for the second quarter of 2019. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 24, 2019 41,083,890 $ 411 $ 5,464 $ (2,976,848 ) $ (4,192 ) Net income — — — 92,359 — Dividends declared on common stock and equivalents ($ 0.65 — — — (26,789 ) — Issuance and cancellation of stock awards, net (3,079 ) — — — — Tax payments for restricted stock upon vesting (377 ) — (100 ) — — Purchases of common stock (12,295 ) (1 ) (3,308 ) — — Exercise of stock options 164,219 2 4,751 — — Non-cash — — 3,981 — — Currency translation adjustment — — — — (16 ) Balance at June 16, 2019 41,232,358 $ 412 $ 10,788 $ (2,911,278 ) $ (4,208 ) The following table summarizes changes in stockholders deficit for the two fiscal quarters of 2019. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 30, 2018 40,977,561 $ 410 $ 569 $ (3,036,471 ) $ (4,429 ) Net income — — — 185,009 — Dividends declared on common stock and equivalents ($ 1.30 — — — (53,454 ) — Issuance and cancellation of stock awards, net 5,161 — — — Tax payments for restricted stock upon vesting (9,441 ) — (2,567 ) — — Purchases of common stock (45,844 ) (1 ) (5,090 ) (6,362 ) — Exercise of stock options 304,921 3 9,287 — — Non-cash — — 8,589 — — Currency translation adjustment — — — — 221 Balance at June 16, 2019 41,232,358 $ 412 $ 10,788 $ (2,911,278 ) $ (4,208 ) Subsequent to the second quarter, on July 10, 2019 September 13, 2019 September 30, 2019 The following table summarizes changes in stockholders’ deficit for the second quarter of 2018. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 25, 2018 42,625,881 $ 426 $ 137 $ (2,768,591 ) $ (2,836 ) Net income — — — 77,408 — Dividends declared on common stock and equivalents ($ 0.55 — — — (23,012 ) — Issuance and cancellation of stock awards, net (1,340 ) — — — — Tax payments for restricted stock upon vesting (76 ) — (19 ) — — Purchases of common stock (905,556 ) (9 ) (6,248 ) (212,726 ) — Exercise of stock options 118,784 1 1,487 — — Non-cash — — 5,380 — — Currency translation adjustment — — — — (603 ) Balance at June 17, 2018 41,837,693 $ 418 $ 737 $ (2,926,921 ) $ (3,439 ) The following table summarizes changes in stockholders’ deficit for the two fiscal quarters of 2018. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 31, 2017 42,898,329 $ 429 $ 5,654 $ (2,739,437 ) $ (2,030 ) Net income — — — 166,235 — Dividends declared on common stock and equivalents ($ 1.10 — — — (46,561 ) — Issuance and cancellation of stock awards, net 7,866 — — — — Tax payments for restricted stock upon vesting (10,237 ) — (2,318 ) — — Purchases of common stock (1,353,564 ) (14 ) (19,245 ) (300,808 ) — Exercise of stock options 295,299 3 5,203 — — Non-cash — — 11,443 — — Adoption of revenue recognition accounting standard — — — (6,701 ) — Currency translation adjustment — — — — (1,058 ) Reclassification adjustment for stranded taxes — — — 351 (351 ) Balance at June 17, 2018 41,837,693 $ 418 $ 737 $ (2,926,921 ) $ (3,439 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 16, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 June 16, 2019 and December 30, 2018: At June 16, 2019 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 93,178 $ 93,178 $ — $ — Restricted cash equivalents 91,476 91,476 — — Investments in marketable securities 10,068 10,068 — — Advertising fund cash equivalents, restricted 52,055 52,055 — — Advertising fund investments, restricted 35,000 35,000 — — At December 30, 2018 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 11,877 $ 11,877 $ — $ — Restricted cash equivalents 112,272 112,272 — — Investments in marketable securities 8,718 8,718 — — Advertising fund cash equivalents, restricted 31,547 31,547 — — Advertising fund investments, restricted 50,152 50,152 — — 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: June 16, 2019 December 30, 2018 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year $ 776,000 $ 810,920 $ 780,000 $ 783,120 2017 Five-Year Fixed Rate Notes 589,500 589,500 592,500 575,910 2017 Ten-Year 982,500 1,014,923 987,500 956,888 2017 Five-Year Floating Rate Notes 294,750 294,455 296,250 295,065 2018 7.5-Year 420,750 432,952 422,875 416,955 2018 9.25-Year 396,000 413,820 398,000 396,010 At June 16, 2019, the Company did not have any outstanding borrowings under its variable funding notes. The Company had $65.0 million outstanding under its variable funding notes at December 30, 2018. Borrowings under the variable funding notes are a variable rate loan. The fair value of this loan approximated 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 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. |
Revenue Disclosures
Revenue Disclosures | 6 Months Ended |
Jun. 16, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disclosures | 6. Revenue Disclosures Contract Liabilities Contract liabilities consist of deferred franchise fees and deferred development fees. Changes in contract liabilities were as follows: Two Fiscal Quarters Ended June 16, June 17, 2019 2018 Contract liabilities at beginning of period $ 19,900 $ 19,404 Revenue recognized during the period (2,630 ) (2,325 ) New deferrals due to cash received and other 1,807 3,239 Contract liabilities at end of period $ 19,077 $ 20,318 Advertising Fund Assets As of June 16, 2019, advertising fund assets, restricted of $117.7 million consisted of $96.3 million of cash, cash equivalents and investments, $18.6 million of accounts receivable and $2.8 million of prepaid expenses. As of June 16, 2019, advertising fund cash, cash equivalents and investments included $4.3 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. |
Lease Disclosures
Lease Disclosures | 6 Months Ended |
Jun. 16, 2019 | |
Leases [Abstract] | |
Lease Disclosures | 7. 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 second quarter and two fiscal quarters of 2019 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 16, June 16, 2019 2019 Operating lease cost $ 9,518 $ 20,314 Finance lease cost: Amortization of right-of-use 255 509 Interest on lease liabilities 317 796 Total finance lease cost $ 572 $ 1,305 Rent expense totaled $ 15.9 32.3 15.2 30.6 non-lease Supplemental balance sheet information related to the Company’s leases as of June 16, 2019 and December 30, 2018 was as follows: June 16, December 30, 2019 2018 Land and buildings $ 22,183 $ 22,171 Accumulated depreciation and amortization (7,187 ) (6,678 ) Finance lease assets, net $ 14,996 $ 15,493 Current portion of long-term debt $ 669 $ 643 Long-term debt, less current portion 16,087 16,363 Total principal payable on finance leases $ 16,756 $ 17,006 As of June 16, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: Operating Finance Leases Leases Weighted average remaining lease term 8 14 Weighted average discount rate 3.9 % 11.3 % Supplemental cash flow information related to leases for the second quarter and two fiscal quarters of 2019 was as follows: Fiscal Quarter Two Fiscal Quarters June 16, 2019 June 16, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,398 $ 20,088 Operating cash flows from finance leases 317 796 Financing cash flows from finance leases 106 261 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 13,391 26,368 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 financing activities of $2.6 million for the increase in capital lease assets and liabilities during the two fiscal quarters of 2018. Maturities of lease liabilities as of June 16, 2019 were as follows: Operating Finance Leases Leases 2019 $ 19,825 $ 1,389 2020 36,827 2,416 2021 34,323 2,434 2022 31,191 2,452 2023 28,591 2,475 Thereafter 105,474 23,796 Total future minimum rental commitments 256,231 34,962 Less – amounts representing interest (37,770 ) (18,206 ) Total lease liabilities $ 218,461 $ 16,756 Maturities of lease liabilities as of December 30, 2018 were as follows: Operating Finance Leases Leases 2019 $ 40,752 $ 2,396 2020 37,519 2,415 2021 34,538 2,433 2022 30,763 2,451 2023 27,388 2,474 Thereafter 100,310 23,781 Total future minimum rental commitments $ 271,270 35,950 Less – amounts representing interest (18,944 ) Total principal payable on finance leases $ 17,006 As of June 16, 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 $36.4 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 $18.2 million and $2.4 million as of June 16, 2019 and December 30, 2018, 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 or expenses, capital expenditures or liquidity. |
Legal Matters
Legal Matters | 6 Months Ended |
Jun. 16, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | 8 . 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 case went to trial in 2016 and the Company was found liable, but the verdict was reversed by the Florida Fifth District Court of Appeals in May 2018 and was remanded to the Ninth Judicial Circuit Court of Florida for a new trial. The case was tried again in June 2019 and the jury returned an $9.0 million judgment for the plaintiff where the Company and Mr. Kidd were found to be 100% liable (after certain offsets and other deductions the final verdict was $8.0 million). The Company continues to deny liability and has filed post-judgment motions with the ultimate intention of filing another appeal of the verdict, if necessary. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 6 Months Ended |
Jun. 16, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 9. Supplemental Disclosures of Cash Flow Information The Company had non-cash |
Sale of Company-Owned Stores
Sale of Company-Owned Stores | 6 Months Ended |
Jun. 16, 2019 | |
Restructuring and Related Activities [Abstract] | |
Sale of Company-Owned Stores | 10. Sale of Company-owned Stores During the second quarter of 2019, the Company sold 59 U.S. Company-owned stores to certain of its existing U.S. franchisees for proceeds of $9.7 million, of which $8.1 million was received in cash during the quarter. The remaining $1.6 million was included in short-term notes receivable as of June 16, 2019. In connection with the sale of the stores, the Company recorded a $2.4 million pre-tax loss on the sale of the related assets and liabilities, which included a $1.4 million reduction in goodwill. The loss was recorded in general and administrative expense in the Company’s condensed consolidated statements of income. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 16, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 11. New Accounting Pronouncements Recently Adopted Accounting Standard Accounting Standards Update 2016-02, Leases (Topic 842) 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 assets and lease liabilities on its condensed consolidated balance sheet. The Company elected the optional practical expedient to retain its current classification of leases, and accordingly, the adoption of ASC 842 did not have a material effect on the Company’s condensed consolidated statement of income and condensed consolidated statement of cash flows. Refer to Note 7 for additional disclosure related to the Company’s lease arrangements. 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 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 assets — 218,860 218,860 Liabilities and stockholders’ deficit Current liabilities: Operating lease liabilities — 32,033 32,033 Other accrued liabilities 55,001 (136 ) 54,865 Long-term liabilities: Operating lease liabilities — 194,736 194,736 Other accrued liabilities 40,807 (9,712 ) 31,095 On December 31, 2018, the Company recorded an adjustment of $226.8 million for operating lease right-of-use assets and liabilities. The operating lease right-of-use assets recorded on the date of adoption were also net of a $7.9 million reclassification of other accrued liabilities and prepaid expenses representing previously deferred (prepaid) rent and lease incentives. The Company also derecognized $1.9 million of construction in progress and other long-term accrued liabilities associated with a new building that will be leased to the Company upon completion in 2019. This lease was previously accounted for as a build-to-suit arrangement under prior lease accounting guidance. 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 standards. ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Basis of Presentation and Upd_2
Basis of Presentation and Updates to Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 16, 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 assets and operating lease liabilities in the Company’s condensed consolidated balance sheet. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt on the Company’s condensed consolidated balance sheet. Right-of-use 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 months) are expensed as incurred. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 16, 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 June 16, 2019 and June 17, 2018 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2019 $ 289,095 $ 495,989 $ 54,975 $ (28,412 ) $ — $ 811,647 2018 287,142 474,471 51,337 (33,554 ) — 779,396 Income from operations 2019 $ 77,050 $ 41,305 $ 41,432 N/A $ (20,864 ) $ 138,923 2018 73,193 36,494 39,104 N/A (22,646 ) 126,145 Segment Income 2019 $ 82,006 $ 45,382 $ 41,491 N/A $ (9,235 ) $ 159,644 2018 76,087 39,454 39,150 N/A (10,241 ) 144,450 Two Fiscal Quarters Ended June 16, 2019 and June 17, 2018 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2019 $ 598,374 $ 1,001,670 $ 109,559 $ (61,993 ) $ — $ 1,647,610 2018 580,029 948,426 103,758 (67,446 ) — 1,564,767 Income from operations 2019 $ 157,664 $ 83,327 $ 84,186 N/A $ (42,750 ) $ 282,427 2018 148,481 73,866 80,628 N/A (43,354 ) 259,621 Segment Income 2019 $ 165,604 $ 91,429 $ 84,290 N/A $ (19,628 ) $ 321,695 2018 154,431 79,610 80,721 N/A (19,337 ) 295,425 |
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 Two Fiscal Quarters Ended June 16, June 17, June 16, June 17, 2019 2018 2019 2018 Total Segment Income $ 159,644 $ 144,450 $ 321,695 $ 295,425 Depreciation and amortization (14,060 ) (12,240 ) (27,850 ) (23,310 ) Loss on sale/disposal of assets (2,680 ) (154 ) (2,829 ) (519 ) Non-cash (3,981 ) (5,379 ) (8,589 ) (11,443 ) Recapitalization-related expenses — (532 ) — (532 ) Income from operations 138,923 126,145 282,427 259,621 Interest income 922 1,179 1,615 1,659 Interest expense (33,866 ) (36,127 ) (68,920 ) (66,413 ) Income before provision for income taxes $ 105,979 $ 91,197 $ 215,122 $ 194,867 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 16, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Fiscal Quarter Ended Two Fiscal Quarters Ended June 16, June 17, June 16, June 17, 2019 2018 2019 2018 Net income available to common stockholders - basic and diluted $ 92,359 $ 77,408 $ 185,009 $ 166,235 Basic weighted average number of shares 41,023,269 42,044,035 40,944,400 42,433,073 Earnings per share – basic $ 2.25 $ 1.84 $ 4.52 $ 3.92 Diluted weighted average number of shares 42,236,507 43,582,996 42,219,649 43,981,253 Earnings per share – diluted $ 2.19 $ 1.78 $ 4.38 $ 3.78 |
Changes in Stockholders' Defi_2
Changes in Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 16, 2019 | |
Federal Home Loan Banks [Abstract] | |
Changes in Stockholders' Deficit | The following table summarizes changes in stockholders’ deficit for the second quarter of 2019. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 24, 2019 41,083,890 $ 411 $ 5,464 $ (2,976,848 ) $ (4,192 ) Net income — — — 92,359 — Dividends declared on common stock and equivalents ($ 0.65 — — — (26,789 ) — Issuance and cancellation of stock awards, net (3,079 ) — — — — Tax payments for restricted stock upon vesting (377 ) — (100 ) — — Purchases of common stock (12,295 ) (1 ) (3,308 ) — — Exercise of stock options 164,219 2 4,751 — — Non-cash — — 3,981 — — Currency translation adjustment — — — — (16 ) Balance at June 16, 2019 41,232,358 $ 412 $ 10,788 $ (2,911,278 ) $ (4,208 ) The following table summarizes changes in stockholders deficit for the two fiscal quarters of 2019. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 30, 2018 40,977,561 $ 410 $ 569 $ (3,036,471 ) $ (4,429 ) Net income — — — 185,009 — Dividends declared on common stock and equivalents ($ 1.30 — — — (53,454 ) — Issuance and cancellation of stock awards, net 5,161 — — — Tax payments for restricted stock upon vesting (9,441 ) — (2,567 ) — — Purchases of common stock (45,844 ) (1 ) (5,090 ) (6,362 ) — Exercise of stock options 304,921 3 9,287 — — Non-cash — — 8,589 — — Currency translation adjustment — — — — 221 Balance at June 16, 2019 41,232,358 $ 412 $ 10,788 $ (2,911,278 ) $ (4,208 ) Subsequent to the second quarter, on July 10, 2019 September 13, 2019 September 30, 2019 The following table summarizes changes in stockholders’ deficit for the second quarter of 2018. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 25, 2018 42,625,881 $ 426 $ 137 $ (2,768,591 ) $ (2,836 ) Net income — — — 77,408 — Dividends declared on common stock and equivalents ($ 0.55 — — — (23,012 ) — Issuance and cancellation of stock awards, net (1,340 ) — — — — Tax payments for restricted stock upon vesting (76 ) — (19 ) — — Purchases of common stock (905,556 ) (9 ) (6,248 ) (212,726 ) — Exercise of stock options 118,784 1 1,487 — — Non-cash — — 5,380 — — Currency translation adjustment — — — — (603 ) Balance at June 17, 2018 41,837,693 $ 418 $ 737 $ (2,926,921 ) $ (3,439 ) The following table summarizes changes in stockholders’ deficit for the two fiscal quarters of 2018. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 31, 2017 42,898,329 $ 429 $ 5,654 $ (2,739,437 ) $ (2,030 ) Net income — — — 166,235 — Dividends declared on common stock and equivalents ($ 1.10 — — — (46,561 ) — Issuance and cancellation of stock awards, net 7,866 — — — — Tax payments for restricted stock upon vesting (10,237 ) — (2,318 ) — — Purchases of common stock (1,353,564 ) (14 ) (19,245 ) (300,808 ) — Exercise of stock options 295,299 3 5,203 — — Non-cash — — 11,443 — — Adoption of revenue recognition accounting standard — — — (6,701 ) — Currency translation adjustment — — — — (1,058 ) Reclassification adjustment for stranded taxes — — — 351 (351 ) Balance at June 17, 2018 41,837,693 $ 418 $ 737 $ (2,926,921 ) $ (3,439 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 16, 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 June 16, 2019 and December 30, 2018: At June 16, 2019 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 93,178 $ 93,178 $ — $ — Restricted cash equivalents 91,476 91,476 — — Investments in marketable securities 10,068 10,068 — — Advertising fund cash equivalents, restricted 52,055 52,055 — — Advertising fund investments, restricted 35,000 35,000 — — At December 30, 2018 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 11,877 $ 11,877 $ — $ — Restricted cash equivalents 112,272 112,272 — — Investments in marketable securities 8,718 8,718 — — Advertising fund cash equivalents, restricted 31,547 31,547 — — Advertising fund investments, restricted 50,152 50,152 — — |
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: June 16, 2019 December 30, 2018 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year $ 776,000 $ 810,920 $ 780,000 $ 783,120 2017 Five-Year Fixed Rate Notes 589,500 589,500 592,500 575,910 2017 Ten-Year 982,500 1,014,923 987,500 956,888 2017 Five-Year Floating Rate Notes 294,750 294,455 296,250 295,065 2018 7.5-Year 420,750 432,952 422,875 416,955 2018 9.25-Year 396,000 413,820 398,000 396,010 |
Revenue Disclosures (Tables)
Revenue Disclosures (Tables) | 6 Months Ended |
Jun. 16, 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 contract liabilities were as follows: Two Fiscal Quarters Ended June 16, June 17, 2019 2018 Contract liabilities at beginning of period $ 19,900 $ 19,404 Revenue recognized during the period (2,630 ) (2,325 ) New deferrals due to cash received and other 1,807 3,239 Contract liabilities at end of period $ 19,077 $ 20,318 |
Lease Disclosures (Tables)
Lease Disclosures (Tables) | 6 Months Ended |
Jun. 16, 2019 | |
Leases [Abstract] | |
Components Of Operating And Finance Lease Cost | The components of operating and finance lease cost for the second quarter and two fiscal quarters of 2019 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 16, June 16, 2019 2019 Operating lease cost $ 9,518 $ 20,314 Finance lease cost: Amortization of right-of-use 255 509 Interest on lease liabilities 317 796 Total finance lease cost $ 572 $ 1,305 |
Schedule of Supplemental Balance Sheet Information Related To Finance Leases | Supplemental balance sheet information related to the Company’s leases as of June 16, 2019 and December 30, 2018 was as follows: June 16, December 30, 2019 2018 Land and buildings $ 22,183 $ 22,171 Accumulated depreciation and amortization (7,187 ) (6,678 ) Finance lease assets, net $ 14,996 $ 15,493 Current portion of long-term debt $ 669 $ 643 Long-term debt, less current portion 16,087 16,363 Total principal payable on finance leases $ 16,756 $ 17,006 Operating Finance Leases Leases Weighted average remaining lease term 8 14 Weighted average discount rate 3.9 % 11.3 % |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the second quarter and two fiscal quarters of 2019 was as follows: Fiscal Quarter Two Fiscal Quarters June 16, 2019 June 16, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,398 $ 20,088 Operating cash flows from finance leases 317 796 Financing cash flows from finance leases 106 261 Right-of-use assets obtained in exchange for new lease obligations: Operating leases 13,391 26,368 Finance leases — — |
Schedule Of Maturities Of Operating And Finance Leases Liabilities | Maturities of lease liabilities as of June 16, 2019 were as follows: Operating Finance Leases Leases 2019 $ 19,825 $ 1,389 2020 36,827 2,416 2021 34,323 2,434 2022 31,191 2,452 2023 28,591 2,475 Thereafter 105,474 23,796 Total future minimum rental commitments 256,231 34,962 Less – amounts representing interest (37,770 ) (18,206 ) Total lease liabilities $ 218,461 $ 16,756 Maturities of lease liabilities as of December 30, 2018 were as follows: Operating Finance Leases Leases 2019 $ 40,752 $ 2,396 2020 37,519 2,415 2021 34,538 2,433 2022 30,763 2,451 2023 27,388 2,474 Thereafter 100,310 23,781 Total future minimum rental commitments $ 271,270 35,950 Less – amounts representing interest (18,944 ) Total principal payable on finance leases $ 17,006 |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 16, 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 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 assets — 218,860 218,860 Liabilities and stockholders’ deficit Current liabilities: Operating lease liabilities — 32,033 32,033 Other accrued liabilities 55,001 (136 ) 54,865 Long-term liabilities: Operating lease liabilities — 194,736 194,736 Other accrued liabilities 40,807 (9,712 ) 31,095 |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 811,647 | $ 779,396 | $ 1,647,610 | $ 1,564,767 |
Income from operations | 138,923 | 126,145 | 282,427 | 259,621 |
Segment Income | 159,644 | 144,450 | 321,695 | 295,425 |
Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 467,577 | 440,917 | 939,677 | 880,980 |
Operating Segments [Member] | U.S. Stores [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 289,095 | 287,142 | 598,374 | 580,029 |
Income from operations | 77,050 | 73,193 | 157,664 | 148,481 |
Segment Income | 82,006 | 76,087 | 165,604 | 154,431 |
Operating Segments [Member] | Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 495,989 | 474,471 | 1,001,670 | 948,426 |
Income from operations | 41,305 | 36,494 | 83,327 | 73,866 |
Segment Income | 45,382 | 39,454 | 91,429 | 79,610 |
Operating Segments [Member] | International Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 54,975 | 51,337 | 109,559 | 103,758 |
Income from operations | 41,432 | 39,104 | 84,186 | 80,628 |
Segment Income | 41,491 | 39,150 | 84,290 | 80,721 |
Intersegment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (28,412) | (33,554) | (61,993) | (67,446) |
Segment Reconciling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | (20,864) | (22,646) | (42,750) | (43,354) |
Segment Income | $ (9,235) | $ (10,241) | $ (19,628) | $ (19,337) |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | |
Segment Reconciliation [Abstract] | ||||
Total Segment Income | $ 159,644 | $ 144,450 | $ 321,695 | $ 295,425 |
Depreciation and amortization | (14,060) | (12,240) | (27,850) | (23,310) |
Loss on sale/disposal of assets | (2,680) | (154) | (2,829) | (519) |
Non-cash compensation expense | (3,981) | (5,379) | (8,589) | (11,443) |
Recapitalization-related expenses | (532) | (532) | ||
Income from operations | 138,923 | 126,145 | 282,427 | 259,621 |
Interest income | 922 | 1,179 | 1,615 | 1,659 |
Interest expense | (33,866) | (36,127) | (68,920) | (66,413) |
Income before provision for income taxes | $ 105,979 | $ 91,197 | $ 215,122 | $ 194,867 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders - basic and diluted | $ 92,359 | $ 77,408 | $ 185,009 | $ 166,235 |
Basic weighted average number of shares | 41,023,269 | 42,044,035 | 40,944,400 | 42,433,073 |
Earnings per share – basic | $ 2.25 | $ 1.84 | $ 4.52 | $ 3.92 |
Diluted weighted average number of shares | 42,236,507 | 43,582,996 | 42,219,649 | 43,981,253 |
Earnings per share – diluted | $ 2.19 | $ 1.78 | $ 4.38 | $ 3.78 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | |
Stock Option [Member] | ||||
Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 71,180 | 68,760 | 71,180 | 90,670 |
Restricted Performance Shares [Member] | ||||
Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share, amount unvested | 93,412 | 116,624 | 93,412 | 116,624 |
Changes in Stockholders' Defi_3
Changes in Stockholders' Deficit - Additional Information (Detail) - $ / shares | Jul. 10, 2019 | Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 |
Dividends declared per share | $ 0.65 | $ 0.55 | $ 1.30 | $ 1.10 | |
Subsequent Event [Member] | |||||
Dividends declared per share | $ 0.65 | ||||
Record date of dividend | Sep. 13, 2019 | ||||
Dividend declared date | Jul. 10, 2019 | ||||
Dividend payable date | Sep. 30, 2019 |
Changes in Stockholders' Defi_4
Changes in Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | ||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | [1] | $ (3,039,921) | |||
Net income | $ 92,359 | $ 77,408 | 185,009 | $ 166,235 | |
Ending Balance | $ (2,904,286) | $ (2,904,286) | |||
Common Stock [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance, (in shares) | 41,083,890 | 42,625,881 | 40,977,561 | 42,898,329 | |
Beginning Balance | $ 411 | $ 426 | $ 410 | $ 429 | |
Issuance and cancellation of stock awards, net (in shares) | (3,079) | (1,340) | 5,161 | 7,866 | |
Tax payments for restricted stock upon vesting, (in shares) | (377) | (76) | (9,441) | (10,237) | |
Purchases of common stock, (in shares) | (12,295) | (905,556) | (45,844) | (1,353,564) | |
Purchases of common stock | $ (1) | $ (9) | $ (1) | $ (14) | |
Exercise of stock options, (in shares) | 164,219 | 118,784 | 304,921 | 295,299 | |
Exercise of stock options | $ 2 | $ 1 | $ 3 | $ 3 | |
Ending Balance, (in shares) | 41,232,358 | 41,837,693 | 41,232,358 | 41,837,693 | |
Ending Balance | $ 412 | $ 418 | $ 412 | $ 418 | |
Additional Paid-in Capital [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | 5,464 | 137 | 569 | 5,654 | |
Tax payments for restricted stock upon vesting | (100) | (19) | (2,567) | (2,318) | |
Purchases of common stock | (3,308) | (6,248) | (5,090) | (19,245) | |
Exercise of stock options | 4,751 | 1,487 | 9,287 | 5,203 | |
Non-cash compensation expense | 3,981 | 5,380 | 8,589 | 11,443 | |
Ending Balance | 10,788 | 737 | 10,788 | 737 | |
Retained Deficit [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | (2,976,848) | (2,768,591) | (3,036,471) | (2,739,437) | |
Net income | 92,359 | 77,408 | 185,009 | 166,235 | |
Dividends declared on common stock and equivalents | (26,789) | (23,012) | (53,454) | (46,561) | |
Purchases of common stock | (212,726) | (6,362) | (300,808) | ||
Adoption of revenue recognition accounting standard | (6,701) | ||||
Reclassification adjustment for stranded taxes | 351 | ||||
Ending Balance | (2,911,278) | (2,926,921) | (2,911,278) | (2,926,921) | |
Accumulated Other Comprehensive Loss [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | (4,192) | (2,836) | (4,429) | (2,030) | |
Currency translation adjustment | (16) | (603) | 221 | (1,058) | |
Reclassification adjustment for stranded taxes | (351) | ||||
Ending Balance | $ (4,208) | $ (3,439) | $ (4,208) | $ (3,439) | |
[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. |
Changes in Stockholders' Defi_5
Changes in Stockholders' Deficit (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | |
Dividends declared per share | $ 0.65 | $ 0.55 | $ 1.30 | $ 1.10 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Jun. 16, 2019 | Dec. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 93,178 | $ 11,877 |
Restricted cash equivalents, carrying amount | 91,476 | 112,272 |
Investments in marketable securities, carrying amount | 10,068 | 8,718 |
Advertising fund cash equivalents, restricted, carrying amount | 52,055 | 31,547 |
Advertising fund investments, restricted, carrying amount | 35,000 | 50,152 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 93,178 | 11,877 |
Restricted cash equivalents, carrying amount | 91,476 | 112,272 |
Investments in marketable securities, carrying amount | 10,068 | 8,718 |
Advertising fund cash equivalents, restricted, fair value | 52,055 | 31,547 |
Advertising fund investments, restricted, fair value | $ 35,000 | $ 50,152 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Jun. 16, 2019 | Dec. 30, 2018 |
2015 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 776,000 | $ 780,000 |
Fair Value | 810,920 | 783,120 |
2017 Five-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 589,500 | 592,500 |
Fair Value | 589,500 | 575,910 |
2017 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 982,500 | 987,500 |
Fair Value | 1,014,923 | 956,888 |
2017 Five-Year Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 294,750 | 296,250 |
Fair Value | 294,455 | 295,065 |
2018 7.5-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 420,750 | 422,875 |
Fair Value | 432,952 | 416,955 |
2018 9.25-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 396,000 | 398,000 |
Fair Value | $ 413,820 | $ 396,010 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 16, 2019 | Dec. 30, 2018 | |
Outstanding Borrowings Amount | $ 0 | $ 65 |
Variable Funding Note [Member] | ||
Long-term Line of Credit, Noncurrent | $ 0 | $ 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 | |
Jun. 16, 2019 | Jun. 17, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities at beginning of period | $ 19,900 | $ 19,404 |
Revenue recognized during the period | (2,630) | (2,325) |
New deferrals due to cash received and other | 1,807 | 3,239 |
Contract liabilities at end of period | $ 19,077 | $ 20,318 |
Revenue Disclosures - Additiona
Revenue Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 16, 2019 | Dec. 30, 2018 | |
Advertising Fund Assets Restricted | $ 117,712 | $ 112,744 | [1] |
Domestic Stores [Member] | Domestic Franchise [Member] | Cash and Investments [Member] | |||
Advertising Fund Assets Restricted | 96,300 | 95,100 | |
Domestic Stores [Member] | Domestic Franchise [Member] | Prepaid Expenses [Member] | |||
Advertising Fund Assets Restricted | 2,800 | 2,300 | |
Domestic Stores [Member] | Domestic Franchise [Member] | Accounts Receivable [Member] | |||
Advertising Fund Assets Restricted | 18,600 | 15,300 | |
Domestic Stores [Member] | Domestic Company Owned Stores [Member] | |||
Cash Contributed from Company Owned Store | $ 4,300 | $ 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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 16, 2019 | Jun. 16, 2019 | |
Operating lease cost | $ 9,518 | $ 20,314 |
Finance lease cost: | ||
Amortization of right-of-use assets | 255 | 509 |
Interest on lease liabilities | 317 | 796 |
Total finance lease cost | $ 572 | $ 1,305 |
Supplemental balance sheet info
Supplemental balance sheet information related to the Company's leases (Detail) - USD ($) $ in Thousands | Jun. 16, 2019 | Dec. 30, 2018 |
Land and buildings | $ 22,183 | $ 22,171 |
Accumulated depreciation and amortization | (7,187) | (6,678) |
Finance lease assets, net | 14,996 | 15,493 |
Current portion of long-term debt | 669 | 643 |
Long-term debt, less current portion | 16,087 | 16,363 |
Total principal payable on finance leases | $ 16,756 | $ 17,006 |
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 | 8 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.90% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 16, 2019 | Jun. 16, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 9,398 | $ 20,088 |
Operating cash flows from finance leases | 317 | 796 |
Financing cash flows from finance leases | 106 | 261 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | $ 13,391 | $ 26,368 |
Maturities Of Lease Liabilities
Maturities Of Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 16, 2019 | Dec. 31, 2018 | Dec. 30, 2018 |
2019 | $ 19,825 | $ 40,752 | |
2020 | 36,827 | 37,519 | |
2021 | 34,323 | 34,538 | |
2022 | 31,191 | 30,763 | |
2023 | 28,591 | 27,388 | |
Thereafter | 105,474 | 100,310 | |
Total future minimum rental commitments | 256,231 | 271,270 | |
Less – amounts representing interest | (37,770) | ||
Total lease liabilities | 218,461 | $ 226,800 | |
2019 | 1,389 | 2,396 | |
2020 | 2,416 | 2,415 | |
2021 | 2,434 | 2,433 | |
2022 | 2,452 | 2,451 | |
2023 | 2,475 | 2,474 | |
Thereafter | 23,796 | 23,781 | |
Total future minimum rental commitments | 34,962 | 35,950 | |
Less – amounts representing interest | (18,206) | (18,944) | |
Total principal payable on finance leases | $ 16,756 | $ 17,006 |
Lease Disclosures - Additional
Lease Disclosures - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 16, 2019 | Jun. 17, 2018 | Jun. 16, 2019 | Jun. 17, 2018 | Dec. 30, 2018 | |
Rent Expenses | $ 15.9 | $ 15.2 | $ 32.3 | $ 30.6 | |
Finance Lease | $ 2.6 | ||||
Potential future payments | 18.2 | 18.2 | $ 2.4 | ||
Operating Lease [Member] | |||||
Future minimum rental commitments | $ 36.4 | $ 36.4 | |||
Lease Term | 15 years | 15 years | |||
Finance Lease [Member] | |||||
Future minimum rental commitments | $ 28.7 | $ 28.7 | |||
Lease Term | 15 years | 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 | $ 9 |
Percentage liable by company for plaintiff | 100.00% |
Litigation settlement, amount | $ 8 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 16, 2019 | Dec. 30, 2018 | |
Schedule of Cash Flow, Supplemental [Line Items] | ||
Capital expenditure accrual | $ 4.8 | $ 3.8 |
Sale of Company-Owned Stores -
Sale of Company-Owned Stores - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 16, 2019USD ($)Store | Jun. 16, 2019USD ($)Store | |
Number of company-owned stores sold | Store | 59 | 59 |
Consideration For Sale Of Stores | $ 9.7 | |
Proceeds from sale of assets | 8.1 | |
Short-term notes receivable | $ 1.6 | $ 1.6 |
Pre-tax loss on sale of assets, net of goodwill reduction, charged to general and administrative expenses | 2.4 | |
Reduction of goodwill related to sale of stores | $ 1.4 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 16, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 226,800 | $ 211,204 |
Operating Lease, Liability | 226,800 | $ 218,461 |
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 |
New Accounting Pronouncements_2
New Accounting Pronouncements - Cumulative Effects of Changes Made to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 16, 2019 | Dec. 31, 2018 | Dec. 30, 2018 | |
Current assets: | ||||
Prepaid expenses and other | $ 37,578 | $ 25,710 | [1] | |
Property, plant and equipment: | ||||
Construction in progress | 29,314 | 31,822 | [1] | |
Other assets: | ||||
Operating lease right-of-use assets | 211,204 | $ 226,800 | ||
Current liabilities: | ||||
Operating lease liabilities | 30,156 | |||
Other accrued liabilities | 101,526 | 121,363 | [1] | |
Long-term liabilities: | ||||
Operating lease liabilities | 188,305 | |||
Other accrued liabilities | $ 31,747 | 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. |