Industry News | February 24, 2009

Domino's Q4 2008 Results Salvaged by International Sales

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Domino's Pizza, Inc. (NYSE: DPZ - News), today announced results for the fourth quarter and fiscal 2008, each ended December 28, 2008. Net income in the fourth quarter was $11.0 million, with domestic same store sales down 3.0 percent and international same store sales up 4.5 percent. This marked the 60th consecutive quarter (the 15th year) of International same store sales growth. The International division has grown to comprise more than 40 percent of our global retail sales and more than 30 percent of the Company's consolidated income from operations in 2008.

Diluted EPS was $0.19 on an as reported and as adjusted basis for the fourth quarter, down $0.07 from the as reported prior year period. However, excluding items affecting comparability from the prior year period, diluted EPS declined $0.02, primarily due to lower operating income from domestic operations and the negative impact of foreign currency.

Global Retail Sales were up 2.7 percent in the fourth quarter and up 2.4 percent for the year, excluding foreign currency translation impacts. This was driven by strong International same store sales and store growth.

David A. Brandon, Domino's Chairman and Chief Executive Officer, says, "Throughout 2008, we battled many external challenges while laying the groundwork for better future results. I have mixed feelings about our overall results. I am disappointed with our domestic sales performance and the pressure this created on our short-term profits. However, I am excited about the aggressive steps we have taken to improve our franchise system, expand our menu and lunch day-part, and strengthen our marketing. And, our International business continues to expand and grow."

Brandon continued, "As it relates to the current situation, there seems to be no consensus on where the general economy is going, making forecasting riskier than ever before. Our plan is to protect and strengthen our business in 2009. We will make decisions with a long-term view, while executing a conservative 2009 budget plan. We are well positioned to protect our Company, our balance sheet and retain our talented team members as we face the challenges that will continue in our domestic economy."