Domino's Pizza® Announces Fourth Quarter and Fiscal 2023 Financial Results
- Global retail sales growth of 4.9% for the fourth quarter and 5.4% for fiscal 2023.
- U.S. same store sales growth of 2.8% in Q4 and 1.6% for fiscal 2023.
- International same store sales growth of 0.1% in Q4 and 1.7% for fiscal 2023.
- Global net store growth of 394 in Q4 and 711 for fiscal 2023.
- Income from operations up 3.4% in Q4 and 6.7% for fiscal 2023.
- Board approves a 25% increase in quarterly dividend to $1.51 per share.
- Additional $1.0 billion share repurchase program authorized.
- Long-term guidance for 2024-2028 includes 7%+ annual global retail sales growth, 1,100+ annual global net store growth, and 8%+ annual income from operations growth.
- Financial highlights show total revenues up 0.8%, net income up 14.8%, and diluted earnings per share up 17.0%.
- Free cash flow increased by 25.1% in 2023 compared to 2022.
- Leverage ratio improved to 5.2x from 5.8x.
- Share repurchases totaling $58.2 million in Q4 2023.
- Company's focus on strategic initiatives like 'Hungry for MORE' strategy to drive sales, store growth, and profits.
- None.
Insights
An examination of Domino's Pizza, Inc.'s financial performance reveals several key factors that are pertinent to stakeholders and the broader market. The reported global retail sales growth of 4.9% for Q4 and 5.4% for FY 2023, alongside a 25% increase in quarterly dividend and a new $1.0 billion share repurchase program, indicates a robust financial position and a commitment to shareholder returns.
From a financial perspective, the increase in income from operations by 3.4% for Q4 and 6.7% for FY 2023, excluding certain gains, suggests operational efficiency and profitability. However, it is important to note that the total revenues saw a slight decrease of 1.3% year-over-year, which could raise concerns about the company's revenue growth sustainability. The leverage ratio improvement from 5.8x to 5.2x is a positive sign, showing a reduction in debt relative to earnings before interest, taxes, depreciation and amortization (EBITDA).
Investors should also consider the context of the U.S. same store sales growth of 2.8% for Q4 and 1.6% for FY 2023. While positive, these figures are relatively modest and may reflect market saturation or increased competition. The international same store sales growth of 0.1% for Q4 and 1.7% for FY 2023, excluding foreign currency impact, indicates that international markets are not contributing significantly to growth, which may be a point of strategic focus for the company moving forward.
The retail landscape, particularly in the quick-service restaurant (QSR) sector, is highly competitive and Domino's Pizza, Inc.'s performance must be contextualized within this industry. The company's net store growth of 394 for Q4 and 711 for FY 2023, excluding the closure of the Russia market, shows an aggressive expansion strategy. However, the minimal growth in international same store sales suggests that the company might be facing challenges in driving comparable sales in established markets outside the U.S.
Moreover, the 25% increase in quarterly dividend and the initiation of a substantial share repurchase program could be interpreted as confidence by the board in the company's future cash flows and earnings potential. These actions can be seen as a signal to the market of the company's financial health and a mechanism to return value to shareholders, potentially impacting the stock's attractiveness.
The long-term guidance provided by the company, projecting 7%+ annual global retail sales growth and 8%+ annual income from operations growth from 2024 to 2028, sets ambitious targets that will require sustained operational excellence and market expansion. Investors and analysts will likely monitor these projections closely, comparing them to industry benchmarks to gauge the company's trajectory.
The reported financial figures for Domino's Pizza, Inc. must also be examined within the broader economic context. The supply chain gross margin increase of 2.7 percentage points in Q4 2023, for example, suggests effective cost management, possibly through procurement efficiencies or favorable commodity prices. This is particularly relevant in an environment where many businesses are grappling with supply chain disruptions and inflationary pressures.
The modest increase in net income and the slight decrease in total revenues may reflect broader economic trends, such as changing consumer spending habits or economic slowdowns in key markets. The effective tax rate increase in Q4 2023 to 23.5%, up from 16.6% in Q4 2022, represents a significant change in tax liabilities, potentially influenced by tax legislation changes or shifts in the geographic distribution of earnings.
As Domino's navigates a complex global economic landscape, the company's ability to adapt to currency fluctuations, maintain cost efficiencies and exploit market opportunities will be critical for long-term success. The impact of foreign currency on international operations is a recurring theme in the company's reporting, highlighting the importance of currency risk management strategies in maintaining profitability.
Global retail sales growth (excluding foreign currency impact) of
International same store sales growth (excluding foreign currency impact) of
Global net store growth of 394 for the fourth quarter; 711 for fiscal 2023 (excluding closure of the
Income from operations up
Board of Directors approves
"Our strong fourth quarter demonstrates that our Hungry for MORE strategy is already delivering results. This strategy, which we recently unveiled at our Investor Day, is our plan to deliver MORE sales, MORE stores and MORE profits," said Russell Weiner, Domino's Chief Executive Officer. "Domino's foundation has never been stronger. Our positive
Fourth Quarter and Fiscal 2023 Operational and Financial Highlights (Unaudited):
The tables below outline certain statistical measures utilized by the Company to analyze its performance, as well as key financial results. This historical data is not necessarily indicative of results to be expected for any future period. Refer to Comments on Regulation G below for additional details, including definitions of these statistical measures and certain reconciliations.
Fourth Quarter | Fiscal Year | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Global retail sales: (in millions of | ||||||||||||||||
$ | 2,831.2 | $ | 2,709.7 | $ | 9,026.1 | $ | 8,751.7 | |||||||||
International stores | 2,897.4 | 2,746.4 | 9,249.7 | 8,788.2 | ||||||||||||
Total | $ | 5,728.6 | $ | 5,456.1 | $ | 18,275.8 | $ | 17,539.9 | ||||||||
Fourth Quarter | Fiscal Year | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Global retail sales growth: (versus prior year period, | ||||||||
+ 4.5 % | + 2.7 % | + 3.1 % | + 1.3 % | |||||
International stores (1) | + 5.2 % | + 7.5 % | + 7.7 % | + 6.3 % | ||||
Total (2) | + 4.9 % | + 5.2 % | + 5.4 % | + 3.9 % | ||||
Same store sales growth: (versus prior year period) | ||||||||
+ 5.9 % | + 3.4 % | + 5.4 % | (2.6) % | |||||
+ 2.6 % | + 0.8 % | + 1.4 % | (0.7) % | |||||
+ 2.8 % | + 0.9 % | + 1.6 % | (0.8) % | |||||
International stores (excluding foreign currency impact) | + 0.1 % | + 2.6 % | + 1.7 % | + 0.1 % | ||||
(1) | 2023 fourth quarter and fiscal year figures exclude the impact of the | |
(2) | 2023 fourth quarter and fiscal year figures exclude the impact of the |
|
| Total | International | Total | ||||||||||||||||
Fourth quarter of 2023 store counts: | ||||||||||||||||||||
Store count at September 10, 2023 | 288 | 6,474 | 6,762 | 13,435 | 20,197 | |||||||||||||||
Openings | — | 95 | 95 | 336 | 431 | |||||||||||||||
Closings | — | (3) | (3) | (34) | (37) | |||||||||||||||
Store count at December 31, 2023 | 288 | 6,566 | 6,854 | 13,737 | 20,591 | |||||||||||||||
Fourth quarter 2023 net store growth | — | 92 | 92 | 302 | 394 | |||||||||||||||
|
| Total | International | Total | ||||||||||||||||
Fiscal 2023 store counts: | ||||||||||||||||||||
Store count at January 1, 2023 | 286 | 6,400 | 6,686 | 13,194 | 19,880 | |||||||||||||||
Openings | 4 | 174 | 178 | 892 | 1,070 | |||||||||||||||
Closings | (1) | (9) | (10) | (349) | (359) | |||||||||||||||
Transfers | (1) | 1 | — | — | — | |||||||||||||||
Store count at December 31, 2023 | 288 | 6,566 | 6,854 | 13,737 | 20,591 | |||||||||||||||
Fiscal 2023 net store growth | 3 | 165 | 168 | 543 | 711 | |||||||||||||||
Fiscal 2023 net store growth, excluding | 3 | 165 | 168 | 702 | 870 | |||||||||||||||
(1) | As previously announced, the remaining 143 net stores in |
Fourth Quarter | Fiscal Year | |||||||||||
(In millions, except percentages, percentage points, per share | 2023 | 2022 | Increase/ | 2023 | 2022 | Increase/ | ||||||
Total revenues | + 0.8 % | (1.3) % | ||||||||||
14.7 % | 16.3 % | (1.6) pp | 16.4 % | 15.2 % | + 1.2 pp | |||||||
Supply chain gross margin | 10.9 % | 8.2 % | + 2.7 pp | 10.2 % | 8.9 % | + 1.3 pp | ||||||
Income from operations(1) | + 3.4 % | + 6.7 % | ||||||||||
Net income | (0.6) % | + 14.8 % | ||||||||||
Diluted earnings per share | + 1.1 % | + 17.0 % | ||||||||||
Leverage ratio | 5.2x | 5.8x | (0.6)x | |||||||||
Net cash provided by operating activities | + 24.3 % | |||||||||||
Capital expenditures | (105.4) | (87.2) | + 20.9 % | |||||||||
Free cash flow | + 25.1 % | |||||||||||
(1) | Income from operations in the fourth quarter and fiscal 2022 included a |
- Revenues increased
$10.7 million 0.8% , in the fourth quarter of 2023 as compared to the fourth quarter of 2022, primarily due to higher global franchise royalties and fees, resulting from global retail sales growth (excluding foreign currency impact) and higher supply chain revenues, partially offset by a decrease inU.S. franchise advertising revenues.U.S. franchise royalties and fees also benefited from an increase in fees paid byU.S. franchisees for the use of the Company's technology platforms. The increase in supply chain revenues was attributable to higher order volumes, partially offset by a shift in the relative mix of the products we sell and a decline in the Company's market basket pricing to stores. The Company's market basket pricing to stores decreased2.0% during the fourth quarter of 2023 as compared to the fourth quarter of 2022. The decrease inU.S. franchise advertising revenues was primarily driven by an increase in advertising incentives related to certain brand promotions in the fourth quarter of 2023 as compared to the fourth quarter of 2022.
U.S. Company-owned store gross margin decreased 1.6 percentage points in the fourth quarter of 2023 as compared to the fourth quarter of 2022, primarily due to higher labor costs as a result of higher wage rates, higher insurance costs and the increase in the loyalty liability resulting from the relaunch of the Domino's Rewards program. These pressures were partially offset by higher same store sales driven by higher customer transaction counts and a decrease in the Company's market basket pricing.
- Supply chain gross margin increased 2.7 percentage points in the fourth quarter of 2023 as compared to the fourth quarter of 2022, primarily due to lower food cost as a result of procurement productivity and the decrease in the Company's market basket pricing to stores.
- Income from operations increased
$8.4 million 3.4% , in the fourth quarter of 2023 as compared to the fourth quarter of 2022 primarily due to higher global franchise royalty revenues resulting from global retail sales growth (excluding foreign currency impact) of4.9% , as well as higher supply chain gross margin, each as discussed above. These increases in income from operations were partially offset by the fourth quarter of 2022 pre-tax refranchising gain of$21.2 million
- Net income decreased
$1.0 million 0.6% , in the fourth quarter of 2023 as compared to the fourth quarter of 2022 primarily due to an increase in the Company's provision for income taxes. Provision for income taxes increased in the fourth quarter of 2023 due to a higher effective tax rate. The effective tax rate increased to23.5% during the fourth quarter of 2023 as compared to16.6% in the fourth quarter of 2022, primarily as a result of the release of certain unrecognized tax benefits related to one of the Company's foreign subsidiaries in the fourth quarter of 2022 that did not recur in the fourth quarter of 2023 and a higher proportion of non-deductible expenses associated with covered officer compensation in the fourth quarter of 2023 as compared to the fourth quarter of 2022. These pressures on net income were partially offset by higher income from operations, as discussed above.
- Diluted EPS was
$4.48 $4.43 $0.05 1.1% , increase. This$0.05 $0.64 $0.10 $0.07 $0.07 $0.46 $0.37
- Net cash provided by operating activities was
$590.9 million $475.3 million $105.4 million $87.2 million $485.5 million $388.1 million
Quarterly Dividend
Subsequent to the end of the fourth quarter of 2023, on February 21, 2024, the Company's Board of Directors approved a
Share Repurchases
During the fourth quarter of 2023, the Company repurchased and retired 167,572 shares of common stock for a total of
Long-Term Guidance (2024 – 2028)
The Company hosted its Investor Day on December 7, 2023, and announced the following long-term guidance metrics that the Company continues to expect to achieve. Annual global retail sales growth and annual income from operations growth exclude the impact of foreign currency.
7% + Annual global retail sales growth;- 1,100+ Annual global net store growth;
8% + Annual income from operations growth.
Comments on Regulation G
In addition to the GAAP financial measures set forth in this press release, the Company has included non-GAAP financial measures within the meaning of Regulation G, including free cash flow and income from operations, excluding foreign currency impact. The Company has also included metrics such as global retail sales, global retail sales growth (excluding foreign currency impact), same store sales growth, the market basket pricing change, the impact of changes in foreign currency exchange rates on international franchise royalty revenues and the leverage ratio, which are commonly used statistical measures in the quick-service restaurant industry that are important to understanding Company performance.
The Company uses "Global retail sales," a statistical measure, to refer to total worldwide retail sales at Company-owned and franchise stores. The Company believes global retail sales information is useful in analyzing revenues because franchisees pay royalties and advertising fees that are based on a percentage of franchise retail sales. The Company reviews comparable industry global retail sales information to assess business trends and to track the growth of the Domino's Pizza brand and are indicative of the financial health of the franchisee base. In addition, supply chain revenues are directly impacted by changes in franchise retail sales in the
The Company uses "Same store sales growth," a statistical measure, which is calculated by including only retail sales from stores that also had sales in the comparable weeks of both periods. International same store sales growth is calculated similarly to
The Company uses "Net store growth," a statistical measure, which is calculated by netting gross store openings with gross store closures during the period. Transfers between Company-owned stores and franchised stores are excluded from the calculation of net store growth.
The Company uses "Market basket pricing change," a statistical measure, which is calculated as the percentage change of the market basket purchased by an average
The Company uses "Free cash flow," which is calculated as net cash provided by operating activities, less capital expenditures, both as reported under GAAP. The most directly comparable financial measure calculated and presented in accordance with GAAP is net cash provided by operating activities. The Company believes that the free cash flow measure is important to investors and other interested persons, and that such persons benefit from having a measure which communicates how much cash flow is available for working capital needs or to be used for repurchasing debt, making acquisitions, repurchasing common stock or paying dividends.
The Company uses "Income from operations, excluding foreign currency impact," which is calculated as income from operations as reported under GAAP, less the "impact of changes in foreign currency exchange rates on international franchise royalty revenues", a statistical measure. The most directly comparable financial measure calculated and presented in accordance with GAAP is income from operations. The impact of changes in foreign currency exchange rates on international franchise royalty revenues is calculated as the difference in international franchise royalty revenues resulting from translating current period local currency results to
The "Leverage ratio1," is calculated as the Company's securitized debt related to its fixed-rate notes from the recapitalizations completed in 2021, 2019, 2018, 2017 and 2015 and borrowings under its variable funding notes, divided by Segment Income as defined by the Company under Accounting Standards Codification 280, Segment Reporting on a trailing four quarters basis. The Company has historically operated with a leverage ratio between four and six times. The Company reviews its leverage ratio on at least a quarterly basis and believes its leverage ratio is important to investors and other interested persons to understand the capital structure of the Company, and to assess the ability of the Company to meet its financial obligations.
The reconciliation of the leverage ratio for the fourth quarter of 2023 and 2022 is as follows:
December 31, | January 1, | |||||||
2015 Ten-Year Notes | $ | 744,000 | $ | 752,000 | ||||
2017 Ten-Year Notes | 942,500 | 952,500 | ||||||
2018 7.5-Year Notes | 403,750 | 408,000 | ||||||
2018 9.25-Year Notes | 380,000 | 384,000 | ||||||
2019 Ten-Year Notes | 649,688 | 656,438 | ||||||
2021 7.5-Year Notes | 828,750 | 837,250 | ||||||
2021 Ten-Year Notes | 975,000 | 985,000 | ||||||
Total fixed-rate notes | $ | 4,923,688 | $ | 4,975,188 | ||||
Segment Income - fourth quarter of 2023 and 2022 | $ | 294,600 | $ | 260,328 | ||||
Segment Income - third quarter of 2023 and 2022 | 217,287 | 201,264 | ||||||
Segment Income - second quarter of 2023 and 2022 | 223,619 | 204,956 | ||||||
Segment Income - first quarter of 2023 and 2022 | 203,615 | 190,977 | ||||||
Trailing four quarters Segment Income | $ | 939,121 | $ | 857,525 | ||||
Leverage ratio | 5.2 | x | 5.8 | x | ||||
(1) | The Company also calculates and reviews its senior leverage ratio and Holdco leverage ratio as defined in the indenture governing the Company's securitized debt. The senior leverage ratio and Holdco leverage ratio are furnished on a quarterly basis in the respective quarterly noteholders' statements. |
Russia Market
On August 21, 2023, the Company's master franchisee that owned and operated Domino's Pizza stores in
Conference call information
The Company will file its Annual Report on Form 10-K today. As previously announced, Domino's Pizza, Inc. will hold a conference call today at 8:30 a.m. (Eastern) to review its fourth quarter and fiscal 2023 financial results. The webcast is available at ir.dominos.com and will be archived for one year.
About Domino's Pizza®
Founded in 1960, Domino's Pizza is the largest pizza company in the world, with a significant business in both delivery and carryout pizza. It ranks among the world's top public restaurant brands with a global enterprise of more than 20,500 stores in over 90 markets. Domino's had global retail sales of nearly
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Please visit our Investor Relations website at ir.dominos.com to view news, announcements, earnings releases, investor presentations and conference webcasts.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
This press release contains various forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") that are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. The following cautionary statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the "safe harbor" provisions of the Act. You can identify forward-looking statements by the use of words such as "anticipates," "believes," "could," "should," "estimates," "expects," "intends," "may," "will," "plans," "predicts," "projects," "seeks," "approximately," "potential," "outlook" and similar terms and phrases that concern our strategy, plans or intentions, including references to assumptions. These forward-looking statements address various matters including information concerning future results of operations and business strategy, our anticipated profitability, estimates in same store sales growth, store growth and the growth of our
TABLES TO FOLLOW
Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
Fourth Quarter Ended | ||||||||||||||||
December 31, | % of | January 1, | % of | |||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
$ | 117,298 | $ | 117,025 | |||||||||||||
194,443 | 177,008 | |||||||||||||||
Supply chain | 856,986 | 852,527 | ||||||||||||||
International franchise royalties and fees | 96,769 | 92,204 | ||||||||||||||
137,476 | 153,467 | |||||||||||||||
Total revenues | 1,402,972 | 100.0 | % | 1,392,231 | 100.0 | % | ||||||||||
Cost of sales: | ||||||||||||||||
100,064 | 97,989 | |||||||||||||||
Supply chain | 763,863 | 782,375 | ||||||||||||||
Total cost of sales | 863,927 | 61.6 | % | 880,364 | 63.2 | % | ||||||||||
Gross margin | 539,045 | 38.4 | % | 511,867 | 36.8 | % | ||||||||||
General and administrative | 144,368 | 10.3 | % | 130,755 | 9.4 | % | ||||||||||
137,476 | 9.8 | % | 153,467 | 11.0 | % | |||||||||||
Refranchising gain | — | — | (21,173) | (1.5) | % | |||||||||||
Income from operations | 257,201 | 18.3 | % | 248,818 | 17.9 | % | ||||||||||
Other income | 4,446 | 0.3 | % | — | 0.0 | % | ||||||||||
Interest expense, net | (56,152) | (4.0) | % | (59,033) | (4.3) | % | ||||||||||
Income before provision for income taxes | 205,495 | 14.6 | % | 189,785 | 13.6 | % | ||||||||||
Provision for income taxes | 48,203 | 3.4 | % | 31,483 | 2.2 | % | ||||||||||
Net income | $ | 157,292 | 11.2 | % | $ | 158,302 | 11.4 | % | ||||||||
Earnings per share: | ||||||||||||||||
Common stock – diluted | $ | 4.48 | $ | 4.43 | ||||||||||||
Weighted average diluted shares | 35,141,199 | 35,715,408 | ||||||||||||||
Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
December 31, | % of | January 1, | % of | |||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
$ | 376,180 | $ | 445,810 | |||||||||||||
604,897 | 556,269 | |||||||||||||||
Supply chain | 2,715,009 | 2,754,742 | ||||||||||||||
International franchise royalties and fees | 310,077 | 295,007 | ||||||||||||||
473,195 | 485,330 | |||||||||||||||
Total revenues | 4,479,358 | 100.0 | % | 4,537,158 | 100.0 | % | ||||||||||
Cost of sales: | ||||||||||||||||
314,673 | 378,018 | |||||||||||||||
Supply chain | 2,437,268 | 2,510,534 | ||||||||||||||
Total cost of sales | 2,751,941 | 61.4 | % | 2,888,552 | 63.7 | % | ||||||||||
Gross margin | 1,727,417 | 38.6 | % | 1,648,606 | 36.3 | % | ||||||||||
General and administrative | 434,554 | 9.7 | % | 416,524 | 9.2 | % | ||||||||||
473,195 | 10.6 | % | 485,330 | 10.7 | % | |||||||||||
Refranchising loss (gain) | 149 | 0.0 | % | (21,173) | (0.5) | % | ||||||||||
Income from operations | 819,519 | 18.3 | % | 767,925 | 16.9 | % | ||||||||||
Other income | 17,713 | 0.4 | % | — | 0.0 | % | ||||||||||
Interest expense, net | (184,792) | (4.1) | % | (195,092) | (4.3) | % | ||||||||||
Income before provision for income taxes | 652,440 | 14.6 | % | 572,833 | 12.6 | % | ||||||||||
Provision for income taxes | 133,322 | 3.0 | % | 120,570 | 2.6 | % | ||||||||||
Net income | $ | 519,118 | 11.6 | % | $ | 452,263 | 10.0 | % | ||||||||
Earnings per share: | ||||||||||||||||
Common stock – diluted | $ | 14.66 | $ | 12.53 | ||||||||||||
Weighted average diluted shares | 35,401,313 | 36,093,754 | ||||||||||||||
Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
December 31, | January 1, | |||||||
(In thousands) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 114,098 | $ | 60,356 | ||||
Restricted cash and cash equivalents | 200,870 | 191,289 | ||||||
Accounts receivable, net | 282,809 | 257,492 | ||||||
Inventories | 82,964 | 81,570 | ||||||
Prepaid expenses and other | 30,215 | 37,287 | ||||||
Advertising fund assets, restricted | 106,335 | 162,660 | ||||||
Total current assets | 817,291 | 790,654 | ||||||
Property, plant and equipment, net | 304,365 | 302,235 | ||||||
Operating lease right-of-use assets | 207,323 | 219,202 | ||||||
Investment in DPC Dash | 143,553 | 125,840 | ||||||
Other assets | 202,367 | 164,290 | ||||||
Total assets | $ | 1,674,899 | $ | 1,602,221 | ||||
Liabilities and stockholders' deficit | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 56,366 | $ | 54,813 | ||||
Accounts payable | 106,267 | 89,715 | ||||||
Operating lease liabilities | 39,330 | 34,877 | ||||||
Advertising fund liabilities | 104,246 | 157,909 | ||||||
Other accrued liabilities | 241,141 | 199,307 | ||||||
Total current liabilities | 547,350 | 536,621 | ||||||
Long-term liabilities: | ||||||||
Long-term debt, less current portion | 4,934,062 | 4,967,420 | ||||||
Operating lease liabilities | 179,548 | 195,244 | ||||||
Other accrued liabilities | 84,306 | 92,001 | ||||||
Total long-term liabilities | 5,197,916 | 5,254,665 | ||||||
Total stockholders' deficit | (4,070,367) | (4,189,065) | ||||||
Total liabilities and stockholders' deficit | $ | 1,674,899 | $ | 1,602,221 | ||||
Domino's Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Fiscal Year Ended | ||||||||
December 31, | January 1, | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 519,118 | $ | 452,263 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 80,640 | 80,251 | ||||||
Refranchising loss (gain) | 149 | (21,173) | ||||||
Loss on sale/disposal of assets | 1,299 | 1,813 | ||||||
Amortization of debt issuance costs | 5,535 | 5,645 | ||||||
(Benefit) provision for deferred income taxes | (19,509) | 253 | ||||||
Non-cash equity-based compensation expense | 37,514 | 28,709 | ||||||
Excess tax benefits from equity-based compensation | (3,397) | (2,169) | ||||||
Provision for losses on accounts and notes receivable | 1,472 | 3,536 | ||||||
Unrealized gain on investments | (17,713) | — | ||||||
Changes in operating assets and liabilities | 38,487 | (56,316) | ||||||
Changes in advertising fund assets and liabilities, restricted | (52,731) | (17,495) | ||||||
Net cash provided by operating activities | 590,864 | 475,317 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (105,396) | (87,234) | ||||||
Proceeds from sale of assets | 161 | 41,089 | ||||||
Purchase of franchise operations and other assets | — | (6,814) | ||||||
Other | (1,682) | (722) | ||||||
Net cash used in investing activities | (106,917) | (53,681) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | 14,898 | 120,000 | ||||||
Repayments of long-term debt and finance lease obligations | (55,705) | (175,676) | ||||||
Proceeds from exercise of stock options | 8,656 | 3,312 | ||||||
Purchases of common stock | (269,025) | (293,740) | ||||||
Tax payments for restricted stock upon vesting | (5,410) | (10,720) | ||||||
Payments of common stock dividends and equivalents | (169,772) | (157,531) | ||||||
Cash paid for financing costs | — | (1,594) | ||||||
Net cash used in financing activities | (476,358) | (515,949) | ||||||
Effect of exchange rate changes on cash | 340 | (963) | ||||||
Change in cash and cash equivalents, restricted cash and cash equivalents | 7,929 | (95,276) | ||||||
Cash and cash equivalents, beginning of period | 60,356 | 148,160 | ||||||
Restricted cash and cash equivalents, beginning of period | 191,289 | 180,579 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, | 143,559 | 161,741 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and | 395,204 | 490,480 | ||||||
Cash and cash equivalents, end of period | 114,098 | 60,356 | ||||||
Restricted cash and cash equivalents, end of period | 200,870 | 191,289 | ||||||
Cash and cash equivalents included in advertising fund assets, restricted, | 88,165 | 143,559 | ||||||
Cash and cash equivalents, restricted cash and cash equivalents and cash and | $ | 403,133 | $ | 395,204 | ||||
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SOURCE Domino's Pizza, Inc.
FAQ
What was Domino's Pizza's global retail sales growth for the fourth quarter and fiscal 2023?
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