The following are highlights of the third quarter of 2000 compared to the same period in 1999.
• Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 11.5% to $33.5 million, or 4.7% excluding 1999 restructuring charges.
• Domestic same store sales decreased 2.2%, comprised of a 2.0% decrease in franchise same store sales and a 3.7% decrease in corporate same store sales.
• International same store sales increased 3.7% on a constant dollar basis, marking the 27th consecutive quarter of international same store sales growth.
• System-wide sales increased 4.0% to $806.2 million.
• Domino's added 80 stores during the third quarter of 2000, bringing the total to 6,815 stores worldwide.
The increases in EBITDA, operating income and net income in 2000 compared to 1999 are due primarily to year-to-date system-wide same store sales growth and more than 250 new store openings system-wide during 2000, which represents a store growth rate 56% greater than in 1999. We also continue to realize savings from our corporate restructuring in late 1999 and recognize reduced covenant not-to-compete amortization expense.
"Our marketing plan for the third quarter was not strong enough to overcome the adverse effect of soft pizza delivery sales,'' commented David A. Brandon, chairman and CEO. "We are pleased with our continued strong EBITDA growth and our continued progress in new store openings. However, we are disappointed with our domestic same store sales performance during the quarter and will be making a significant effort to regain sales momentum as we enter the first quarter of 2001.''
Founded in 1960, Domino's, Inc. operates a network of 6,815 owned and franchised stores in the United States and 59 international markets.