filings.toolsItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
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Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
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As of February 18, 2016, Domino’s Pizza, Inc. had 170,000,000 authorized shares of common stock, par value $0.01 per share, of which 49,854,019 were issued and outstanding. Domino’s Pizza, Inc.’s common stock is traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “DPZ.”
The following table presents the high and low closing prices by quarter for Domino’s Pizza, Inc.’s common stock, as reported by the NYSE, and dividends declared per common share.
| 2014: | High | Low | Dividends Declared Per Share | |||||||||
| First quarter (December 30, 2013 – March 23, 2014) | $ | 80.02 | $ | 67.17 | $ | 0.25 | ||||||
| Second quarter (March 24, 2014 – June 15, 2014) | 78.62 | 71.13 | 0.25 | |||||||||
| Third quarter (June 16, 2014 – September 7, 2014) | 76.43 | 70.17 | 0.25 | |||||||||
| Fourth quarter (September 8, 2014 – December 28, 2014) | 95.93 | 75.54 | 0.25 | |||||||||
| 2015: | ||||||||||||
| First quarter (December 29, 2014 – March 22, 2015) | $ | 104.63 | $ | 94.17 | $ | 0.31 | ||||||
| Second quarter (March 23, 2015 – June 14, 2015) | 113.96 | 98.36 | 0.31 | |||||||||
| Third quarter (June 15, 2015 – September 6, 2015) | 119.43 | 101.78 | 0.31 | |||||||||
| Fourth quarter (September 7, 2015 – January 3, 2016) | 112.95 | 101.62 | 0.31 |
Our Board of Directors declared a quarterly dividend of $0.38 per common share on February 24, 2016 payable on March 30, 2016 to shareholders of record at the close of business on March 15, 2016.
We currently anticipate continuing the payment of quarterly cash dividends. The actual amount of such dividends, if any, will depend upon future earnings, results of operations, capital requirements, our financial condition and certain other factors. There can be no assurance as to the amount of free cash flow that we will generate in future years and, accordingly, dividends will be considered after reviewing returns to shareholders, profitability expectations and financing needs and will be declared at the discretion of our Board of Directors.
As of February 18, 2016, there were 1,162 registered holders of record of Domino’s Pizza, Inc.’s common stock.
We have a Board of Directors-approved share repurchase program for up to $800.0 million of our common stock, of which $200.0 million remained available at January 3, 2016 for future purchases of our common stock. Any future purchases of our common stock would be funded by current cash amounts, available borrowings or future excess cash flow. The following table summarizes our repurchase activity during the fourth quarter ended January 3, 2016:
| Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (2) | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | ||||||||||||
| Period #1 (September 7, 2015 to October 4, 2015) | — | — | — | $ | 159,367,567 | |||||||||||
| Period #2 (October 5, 2015 to November 1, 2015) | 4,860,514 | (2) | 105.53 | (3) | 4,858,994 | (2) | 200,000,000 | |||||||||
| Period #3 (November 2, 2015 to November 29, 2015) | 2,108 | 108.97 | — | 200,000,000 | ||||||||||||
| Period #4 (November 30, 2015 to January 3, 2016) | 1,348 | 109.06 | — | 200,000,000 | ||||||||||||
| Total | 4,863,970 | $ | 107.94 | 4,858,994 | $ | 200,000,000 | ||||||||||
| (1) | 4,976 shares were purchased as part of the Company’s employee stock purchase discount plan. During the fourth quarter, the shares were purchased at an average price of $107.94. |
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| (2) | As part of the 2015 Recapitalization, on October 23, 2015, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $800 million of the Company’s common stock. This share repurchase program replaced a previously existing $200 million share repurchase program. On October 27, 2015, the Company entered into a $600 million accelerated share repurchase agreement (the “ASR Agreement”) with a counterparty. Pursuant to the terms of the ASR Agreement, on October 30, 2015, the Company received and retired 4,858,994 shares of its common stock. At final settlement, which is expected to be completed by the end of the first quarter of 2016, the Company may receive additional shares of common stock, or, under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to the counterparty, based on the terms of the related ASR Agreement. The total number of shares ultimately delivered will be determined at the end of the applicable purchase period. |
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| (3) | The average price paid per share of $105.53 for Period #2 (October 5, 2015 to November 1, 2015) excludes the average price paid per share for shares purchased under the ASR Agreement. Because the total number of shares ultimately delivered will not be determined until the end of the applicable purchase period, the average purchase price per share will not be determinable until the end of such period. |
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The following comparative stock performance line graph compares the cumulative shareholder return on the common stock of Domino’s Pizza, Inc. for the five-year period between the close of trading on December 31, 2010 through the close of trading on December 31, 2015 (the last trading day during fiscal 2015), with cumulative total return on (i) the Total Return Index for the New York Stock Exchange (the “NYSE Composite Index”), (ii) the Standard & Poor’s 500 Index (the “S&P 500”) and (iii) the peer group, the Standard & Poor’s 400 Restaurant Index (the “S&P 400 Restaurant Index”). Management believes that the companies included in the S&P 400 Restaurant Index appropriately reflect the scope of the Company’s operations and match the competitive market in which the Company operates. The cumulative total return computations set forth in the performance graph assume the investment of $100 in the Company’s common stock, the NYSE Composite Index, the S&P 500 Index and the S&P 400 Restaurant Index on December 31, 2010.
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