Domino’s Pizza has announced an increase in total revenues by 5.1% to $1.08bn in the third quarter of 2024, compared to $1.027bn during the same period of 2023.
The growth was primarily driven by higher supply chain revenues, franchise advertising, and royalties and fees in the US.
The company’s US stores saw a 5.1% growth in global retail sales, reaching $2.168bn, while international stores contributed $2.224bn.
Total global retail sales for the quarter amounted to $4.392bn. Same-store sales growth in the US company-owned stores was up by 3.1%, and franchise stores saw a 3% increase.
During the third quarter, Domino’s opened 24 new stores in the US and 184 internationally, while closing 136 stores – a net store growth of 72. The company’s net store growth for the previous four quarters reached 805.
Income from operations saw a 5% increase to $198.8m, and excluding the negative impact of foreign currency exchange rates, the increase was 5.7%.
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By GlobalDataHowever, net income slightly decreased by 0.5% to $146.9m, primarily due to a higher provision for income taxes.
The effective tax rate witnessed a 20.4% rise, influenced by lower foreign tax credits and changes in the impact of excess tax benefits from equity-based compensation.
Despite the decrease in net income, diluted earnings per share increased marginally by 0.2% to $4.19, aided by a lower weighted average diluted share count from share repurchases.
The company’s net cash provided by operating activities for the three fiscal quarters stood at $446.9m, and capital expenditures were $70.8m.
The board of directors declared a quarterly dividend of $1.51 per share, to be paid in December 2024.
Domino’s CEO Russell Weiner said: “Our third quarter results once again demonstrated that our Hungry for MORE strategy is resonating, despite a pressured global marketplace.
“In our international business, we are on track for our 31st consecutive year of same-store sales growth, demonstrating our sustained long-term track record of success.”
Domino’s also repurchased 443,302 shares during the quarter, spending $190.0m, and had a remaining authorised amount for share repurchases of $926.3m.
The company expects approximately 6% annual global retail sales growth and 8% annual income from operations growth in 2024, with between 800 and 850 new stores net worldwide.
In June 2024, Jubilant Foodworks, the master franchise operator for Domino’s in India, announced plans to double the number of Domino’s stores in the country over the medium term.
