Domino's Pizza, Inc. announced results for the third quarter of 2016, comprised of strong growth in same store sales, global store counts, and diluted earnings per share. Domestic same store sales grew 13 percent during the quarter versus the year-ago period, which represents the 22nd consecutive quarter of positive sales in the U.S. business. The international division also posted strong results with quarterly same store sales growth of 6.6 percent, marking the 91st consecutive quarter of international same store sales growth. The company had global net store growth of 316 stores in the quarter, and 1,133 stores over the trailing four quarters.
"We continued to execute at a very high level during the third quarter, as our unprecedented momentum, steady strategy and alignment with our outstanding franchisees is helping to take the business to new heights," says J. Patrick Doyle, Domino's president and chief executive officer. "I couldn't be more pleased with the way our system continues to answer the challenge of sustained success."
Revenues were up 16.9 percent for the third quarter versus the prior year period, due primarily to higher supply chain revenues from increased volumes and store growth. Increased domestic franchise and company-owned store revenues and higher international revenues resulting from both same store sales and store count growth also contributed to this increase.
Net Income increased 24.8 percent for the third quarter versus the prior year period, due primarily to higher consolidated operating margins driven in part by the increase in sales and store growth. Higher general and administrative expenses, as well as higher interest expense as a result of the company's 2015 recapitalization partially offset this increase. Additionally, the company's consolidated operating margins and net income benefited from lower insurance expense in the quarter, due to a casualty insurance charge recorded in the third quarter of 2015.
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