Domino's Pizza Inc. (DPZ) reports fiscal 2023 earnings with strong business growth

  • Global retail sales growth: Excluding currency effects, growth was 4.9% in the fourth quarter and 5.4% in FY2023.

  • US same-store sales growth: Growth of 2.8% in the fourth quarter and 1.6% in FY2023.

  • Growth in overseas same-store sales: Excluding the impact of exchange rates, sales will increase slightly by 0.1% in the fourth quarter and by 1.7% in FY2023.

  • Growth of online store: Added 394 stores in the fourth quarter and 711 stores in fiscal 2023, bringing the net new store count to 870, excluding Russian market closures.

  • Operating income: Increased by 3.4% in the fourth quarter and increased by 6.7% in FY2023. Excluding refranchising gains, they increased by 13.0% and 9.7%, respectively.

  • Quarterly dividends and share buybacks: The Board of Directors approved a 25% dividend increase to $1.51 per share and an additional $1 billion stock repurchase program.

On February 26, 2024, Domino's Pizza, Inc. (NYSE:DPZ) released its 8-K filing detailing its fourth quarter and fiscal year 2023 financial results. The company is known for its global presence with approximately 20,000 stores in more than 90 countries worldwide. We continue to lead the pizza industry with innovative strategies and a robust franchise model. System sales in 2022 will be his $17.7 billion, and Domino's Pizza will maintain its position as the largest player in the global pizza market.

Domino's Pizza Inc. (DPZ) reports fiscal 2023 earnings with strong business growthDomino's Pizza Inc. (DPZ) reports fiscal 2023 earnings with strong business growth

Domino's Pizza Inc. (DPZ) reports fiscal 2023 earnings with strong business growth

Performance and strategy highlights

Domino's Pizza (NYSE:DPZ) reported strong results in the fourth quarter, with global retail sales increasing 4.9% excluding foreign currency effects. This growth reflects the success of the company's “Hungry for MORE” strategy to increase sales, store count and profits. CEO Russell Weiner expressed confidence in the brand's strength and momentum, pointing to strong trading and same-store sales growth, particularly in the United States.

The company's financial results are significant in the competitive restaurant industry, where consistent growth in sales and store count are important indicators of a company's health and ability to expand. Domino's ability to increase shareholder value through dividends and stock repurchases while increasing operating income and online store growth is a testament to the company's strong operational and financial management.

Financial indicators and analysis

Domino's Pizza reported a modest 0.8% increase in revenue for the fourth quarter of 2023 compared to the same period in 2022 due to higher global franchise royalties and fees and supply chain revenues. However, franchise advertising revenue in the United States decreased. The company's U.S. company-operated store gross profit margin decreased slightly due to higher labor and insurance costs, while supply chain gross profit margin improved by 2.7 percentage points, benefiting from lower food costs and procurement productivity.

Operating income increased 3.4% in the fourth quarter due to higher global franchise royalty income and improved supply chain gross margins. Net income decreased slightly by 0.6%, mainly due to an increase in provision for income taxes. Diluted EPS for the fourth quarter of 2023 increased 1.1% to $4.48. The company's free cash flow also increased, reaching $485.5 million in 2023 from $388.1 million in 2022.

Domino's Pizza, Inc. (NYSE:DPZ) continues to effectively execute its growth strategy, as evidenced by its operational and financial results. The company's focus on expanding its global presence, optimizing its supply chain and leveraging digital platforms for distribution underscores its commitment to long-term growth and shareholder value. With his 25% increase in quarterly dividends and his new $1 billion share buyback program, Domino's Pizza is demonstrating confidence in its future performance and financial health.

For detailed financial statements and more information about Domino's Pizza, Inc. (NYSE:DPZ)'s earnings, see the full 8-K filing.

Investors and interested parties can access the company's conference calls and webcasts and review its fourth quarter and fiscal year 2023 financial results on Domino's Pizza's Investor Relations website.

Domino's Pizza (NYSE:DPZ) remains a formidable force in the global pizza market, and its latest earnings report highlights a company that is not only growing but also adapting to the changing landscape of the restaurant industry. It is reflected.

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For more information, see Domino's Pizza Inc's full 8-K earnings release here.

This article first appeared on GuruFocus.

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