Domino's Pizza 10-Q 2022-06-19

Filed 2022-07-21. 1 sections, 118K characters. Original on sec.gov · Markdown · JSON

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 19, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-32242

Domino’s Pizza, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware38-2511577
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
30 Frank Lloyd Wright Drive Ann Arbor**,** Michigan48105
(Address of Principal Executive Offices)(Zip Code)

(734) 930-3030

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Domino’s Pizza, Inc. Common Stock, $0.01 par valueDPZNew York Stock Exchange

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 14, 2022, Domino’s Pizza, Inc. had 35,885,105 shares of common stock, par value $0.01 per share, outstanding.

Domino’s Pizza, Inc.

TABLE OF CONTENTS

Page No.
PART I.FINANCIAL INFORMATION
Item 1.Financial Statements3
Condensed Consolidated Balance Sheets (Unaudited) – As of June 19, 2022 and January 2, 20223
Condensed Consolidated Statements of Income (Unaudited) – Fiscal quarters and two fiscal quarters ended June 19, 2022 and June 20, 20214
Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Fiscal quarters and two fiscal quarters ended June 19, 2022 and June 20, 20215
Condensed Consolidated Statements of Cash Flows (Unaudited) – Two fiscal quarters ended June 19, 2022 and June 20, 20216
Notes to Condensed Consolidated Financial Statements (Unaudited)7
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations14
Item 3.Quantitative and Qualitative Disclosures About Market Risk25
Item 4.Controls and Procedures25
PART II.OTHER INFORMATION
Item 1.Legal Proceedings26
Item 1A.Risk Factors26
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds26
Item 3.Defaults Upon Senior Securities26
Item 4.Mine Safety Disclosures26
Item 5.Other Information26
Item 6.Exhibits27
SIGNATURES28

PA****RT I. FINANCIAL INFORMATION

Ite****m 1. Financial Statements.

Domino’s Pizza, Inc. and Subsidiaries

Conden****sed Consolidated Balance Sheets

(Unaudited)

(In thousands)June 19, 2022January 2, 2022 (1)
Assets
Current assets:
Cash and cash equivalents$114,353$148,160
Restricted cash and cash equivalents158,215180,579
Accounts receivable, net274,957255,327
Inventories70,20168,328
Prepaid expenses and other45,64527,242
Advertising fund assets, restricted182,499180,904
Total current assets845,870860,540
Property, plant and equipment:
Land and buildings108,245108,372
Leasehold and other improvements195,834193,572
Equipment322,079312,772
Construction in progress27,16127,815
653,319642,531
Accumulated depreciation and amortization(339,507)(318,466)
Property, plant and equipment, net313,812324,065
Other assets:
Operating lease right-of-use assets222,780210,702
Goodwill16,15315,034
Capitalized software, net103,13795,558
Investments125,840125,840
Other assets40,65237,968
Deferred income taxes2,3862,109
Total other assets510,948487,211
Total assets$1,670,630$1,671,816
Liabilities and stockholders' deficit
Current liabilities:
Current portion of long-term debt$55,654$55,588
Accounts payable99,46591,547
Operating lease liabilities41,68237,155
Insurance reserves32,15732,588
Dividends payable40,624918
Advertising fund liabilities175,069173,737
Other accrued liabilities130,798199,208
Total current liabilities575,449590,741
Long-term liabilities:

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