Domino’s Pizza increases dividend by 15% following strong results

Overview

Domino’s Pizza delivered solid financial and operational performance for the fourth quarter and full year 2024, demonstrating resilience and growth amid challenging macroeconomic conditions globally. The company reported total annual revenue of $4.71bn, marking an increase driven by robust international and domestic retail sales growth.

CEO Russell Weiner emphasized the strength of Domino’s strategic approach, stating: “Domino’s 2024 results demonstrated that our Hungry for MORE strategy can drive strong order count growth, even in the face of a challenging global macroeconomic environment. In the international business, we delivered a remarkable 31st consecutive year of same-store sales growth, improving notably in the fourth quarter. In the U.S., our commitment to Renowned Value allowed us to gain significant market share in the QSR pizza category.”

Q4 2024 vs. Q4 2023:

• Revenue rose to $1.44bn (+2.9% YoY), primarily driven by increased supply chain revenues and U.S. franchise advertising revenues.
  • U.S. same store sales saw modest growth of 0.4%, supported by a strong franchise store performance, partially offset by a slight decline (-0.7%) at company-owned stores.
  • International same store sales increased 2.7%, highlighting sustained global demand.
• Income from operations climbed to $273.7m (+6.4% YoY), benefiting from higher gross margins in supply chain operations and lower general and administrative expenses.
• Net income increased to $169.4m (+7.7% YoY), supported by operational efficiency and revenue growth despite higher income tax expenses.
• Diluted EPS grew to $4.89 (+9.2% vs. Q4 2023), reflecting higher net income and share repurchase activity.
• Domino’s board approved a 15% increase in quarterly dividend to $1.74 per share, demonstrating confidence in ongoing business performance.

Full-Year 2024 highlights:

• Total revenue reached $4.71bn (+5.1% YoY), driven by significant retail sales growth globally.
  • U.S. same store sales grew 3.2%, driven by effective promotional strategies and value offerings.
  • International same store sales achieved 1.6% growth, demonstrating continued international market strength.
• Net store growth amounted to 775 stores globally, underscoring strong franchise demand and market expansion capabilities.
• Income from operations improved to $879m (+7.3% YoY), enhanced by increased gross margin efficiency and disciplined expense management.
• Net Income rose significantly to a value of $584.2m (+12.5% YoY), fueled by strong operating results and effective management of expenses.
• Diluted EPS surged to $16.69 (+13.8% vs. 2023), supported by increased profitability and strategic share repurchases.
• Capital allocation included $112.9m (+7.1% vs. 2023) in capital expenditures and $327m in share repurchases, reflecting ongoing investments in growth and shareholder value.

Looking forward to 2025, Domino’s expects to sustain positive momentum by continuing to expand market share, enhancing operational efficiency, and leveraging strategic pricing initiatives despite anticipated ongoing macroeconomic challenges globally. The company remains dedicated to delivering long-term value creation for both franchisees and shareholders.

After the publication of the main results report, DPZ’s share price started this trading week with a decrease of more than -6%, mainly due to several results that were slightly below the estimates of Wall Street analysts. At the time of writing, DPZ’s share price is gradually recovering from the pre-market loss, trading down by approximately -2.5%.

Author: Ionuț-Adrian Lazar