Domino’s Pizza (DPZ 188.49, +3.07 +1.7%), serving up pies since 1960, trades to near all-time highs which the stock reached earlier this month. The company reported better than expected Q4 earnings per share (EPS) and revenues with strong same store sales growth to boot this morning, propelling the stock to just shy of the $190-level.
Specifically for Q4, DPZ reported EPS of $1.48 on revenues which grew about 10.6% compared to last year to $819.43 million. DPZ management noted that the as-reported diluted EPS for both the fourth quarter and fiscal 2015 was negatively impacted by expenses related to the company's recapitalization, and was positively impacted by the inclusion of an extra, or 53rd, week in the fourth quarter of 2015.
Getting a little more granular, domestic same store sales were up about 12.2% during Q4 versus the year-ago period, and 10.5% for the full year. Breaking it down even further, domestic company-owned stores same store sales growth was 13.7% in Q4 while domestic franchise stores SSS result was 12.1%. DPZ’s international division also fared well in Q4, posting same store sales growth of 4.3% and 6.3% for the full year. Globally, DPZ reported domestic store SSS growth of 8.9% with International SSS growth of 5.3%. Excluding foreign currency impacts, international SSS growth was 10.4%. By comparison, in Yum! Brands (YUM 65.35, -0.17 -0.26%) latest quarterly report from February 9, the Pizza Hut owner reported a SSS decline of about 2% on system sales growth of 3%.
Laying out their thoughts for future growth, DPZ management also today gave their outlook for three-to-five years ahead. To that end, DPZ sees domestic same store sales growth of 3-6% versus their prior outlook of 2-5% growth in that period. The company also sees international same store sales growth unchanged from prior levels at 3-6%. For net unit growth, management upped their goals slightly for the three-to-five year period to 6-8% from 5-7% prior. Lastly, DPZ now sees global retail sales growth of 8-12% versus prior expectations in the range of 7-11%.
With that said, the stock has had a strong 2017 thus far. Shares have added more than 18% since the first of the year, with about 7.7% gains since the start of February.