Domino's Pizza 10-Q 2023-06-18

Filed 2023-07-24. 1 sections, 123K 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 18, 2023

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 17, 2023, Domino’s Pizza, Inc. had 35,094,304 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 18, 2023 and January 1, 20233
Condensed Consolidated Statements of Income (Unaudited) – Fiscal quarters and two fiscal quarters ended June 18, 2023 and June 19, 20224
Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Fiscal quarters and two fiscal quarters ended June 18, 2023 and June 19, 20225
Condensed Consolidated Statements of Cash Flows (Unaudited) – Two fiscal quarters ended June 18, 2023 and June 19, 20226
Notes to Condensed Consolidated Financial Statements (Unaudited)7
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations15
Item 3.Quantitative and Qualitative Disclosures About Market Risk26
Item 4.Controls and Procedures26
PART II.OTHER INFORMATION
Item 1.Legal Proceedings27
Item 1A.Risk Factors27
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds27
Item 3.Defaults Upon Senior Securities27
Item 4.Mine Safety Disclosures27
Item 5.Other Information27
Item 6.Exhibits28
SIGNATURES29

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 18, 2023January 1, 2023 (1)
Assets
Current assets:
Cash and cash equivalents$77,020$60,356
Restricted cash and cash equivalents189,694191,289
Accounts receivable, net260,024257,492
Inventories65,62781,570
Prepaid expenses and other53,20137,287
Advertising fund assets, restricted154,052162,660
Total current assets799,618790,654
Property, plant and equipment:
Land and buildings105,847105,659
Leasehold and other improvements175,944172,725
Equipment351,927333,787
Construction in progress15,08922,536
648,807634,707
Accumulated depreciation and amortization(352,872)(332,472)
Property, plant and equipment, net295,935302,235
Other assets:
Operating lease right-of-use assets213,817219,202
Goodwill11,68811,763
Capitalized software, net119,299108,354
Investment in DPC Dash110,876125,840
Deferred income tax assets, net2,4921,926
Other assets42,44542,247
Total other assets500,617509,332
Total assets$1,596,170$1,602,221
Liabilities and stockholders’ deficit
Current liabilities:
Current portion of long-term debt$55,745$54,813
Accounts payable90,68889,715
Operating lease liabilities37,61134,877
Insurance reserves30,19731,435
Dividends payable43,586866
Advertising fund liabilities150,365157,909
Other accrued liabilities139,336167,006
Total current liabilities547,528536,621
Long-term

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