Domino's Pizza 10-Q 2024-09-08

Filed 2024-10-10. 1 sections, 126K 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 September 8, 2024

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 October 3, 2024, Domino’s Pizza, Inc. had 34,531,978 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 September 8, 2024 and December 31, 20233
Condensed Consolidated Statements of Income (Unaudited) – Fiscal quarters and three fiscal quarters ended September 8, 2024 and September 10, 20234
Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Fiscal quarters and three fiscal quarters ended September 8, 2024 and September 10, 20235
Condensed Consolidated Statements of Cash Flows (Unaudited) – Three fiscal quarters ended September 8, 2024 and September 10, 20236
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 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 Information28
Item 6.Exhibits29
SIGNATURES30

PA****RT I. FINANCIAL INFORMATION

Ite****m 1. Financial Statements.

Domino’s Pizza, Inc. and Subsidiaries

Conden****sed Consolidated Balance Sheets

(Unaudited)

(In thousands)September 8, 2024December 31, 2023 (1)
Assets
Current assets:
Cash and cash equivalents$189,084$114,098
Restricted cash and cash equivalents185,439200,870
Accounts receivable, net278,707282,809
Inventories69,16882,964
Prepaid expenses and other38,72530,215
Advertising fund assets, restricted111,134106,335
Total current assets872,257817,291
Property, plant and equipment:
Land and buildings105,018108,791
Leasehold and other improvements185,915176,817
Equipment389,488364,620
Construction in progress13,58824,505
694,009674,733
Accumulated depreciation and amortization(400,602)(370,368)
Property, plant and equipment, net293,407304,365
Other assets:
Operating lease right-of-use assets215,040207,323
Goodwill11,57811,688
Capitalized software, net151,947134,105
Investment in DPC Dash162,424143,553
Deferred income tax assets, net21,21613,680
Other assets47,19742,894
Total other assets609,402553,243
Total assets$1,775,066$1,674,899
Liabilities and stockholders’ deficit
Current liabilities:
Current portion of long-term debt$4,946$56,366
Accounts payable97,847106,267
Operating lease liabilities40,80639,330
Insurance reserves27,13728,135
Dividends payable54,0631,514
Advertising fund liabilities109,219104,246
Other accrued liabilities176,

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