The following are highlights for the first quarter of 2001 compared to the same period in 2000.
• Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 10.5% to a record $36.8 million.
• Domestic same store sales increased 4.1%, comprised of an 8.2% increase in company-owned same store sales and a 3.6% increase in domestic franchise same store sales.
• International same store sales increased 9.8% on a constant dollar basis, marking the 29th consecutive quarter of international same store sales growth.
• System-wide sales increased 8.0% to $878.2 million.
• Domino's added 69 stores during the first quarter of 2001, including our 7,000th store in Brooklyn, New York, bringing the total to 7,046 stores worldwide.
The increase in EBITDA in 2001 compared to 2000 is due primarily to strong system-wide sales growth as a result of an increase in domestic and international same store sales and the addition of 69 stores worldwide. The increase in domestic same store sales was partially due to the successful rollout of our new CinnaStix® product. We also benefited from a related increase in volumes in our distribution business as a result of the increased domestic sales. The gains resulting from the increased sales were offset in part by increased food and labor costs at our company-owned stores.
Net income was positively impacted by reductions in our interest costs due to lower debt levels and more favorable variable interest rates, while negatively impacted by an increase in provision for income taxes due to increased pre-tax income.
"We know consumers respond to 'news' and to a clear marketing message, and we had both in the first quarter,'' said David A. Brandon, chairman and chief executive officer of Domino's Pizza. "During the six-week promotion when we offered free CinnaStix, we delivered more than 20 million orders. More importantly, after the promotion ended, customers began repurchasing CinnaStix at a significant rate. That, coupled with a clear marketing message, and exceptional performance on the part of our franchisees and corporate stores, drove the increase in our same store sales.
"Customers also responded to our new advertising campaign, 'Get the Door, It's Domino's,''' Brandon continued. "This is part of our back-to-basics approach in advertising, which is to remind consumers everywhere that we are the pioneer and leader in pizza delivery.
"I'm also extremely pleased that we achieved the milestone of opening our 7,000th store worldwide. This is just one important step toward our longer term goal of having at least 10,000 Domino's Pizza stores open throughout the world,'' Brandon concluded.
Founded in 1960, Domino's, Inc. operates a network of 7,046 owned and franchised stores in the United States and 65 international markets. For more information about the company, visit our website at http://www.dominos.com.
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