Domino's Pizza 10-Q 2025-03-23

Filed 2025-04-28. 2 sections, 111K 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 March 23, 2025

☐ 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)


Delaware		38-2511577
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
30 Frank Lloyd Wright Drive Ann Arbor, Michigan		48105
(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 Class	Trading Symbol	Name of Each Exchange on Which Registered
Domino’s Pizza, Inc. Common Stock, $0.01 par value	DPZ	The Nasdaq Stock Market LLC

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 April 21, 2025, Domino’s Pizza, Inc. had 34,241,477 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 Statements	3

	Condensed Consolidated Balance Sheets (Unaudited) – As of March 23, 2025 and December 29, 2024	3

	Condensed Consolidated Statements of Income (Unaudited) – Fiscal quarters ended March 23, 2025 and March 24, 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Fiscal quarters ended March 23, 2025 and March 24, 2024	5

	Condensed Consolidated Statements of Cash Flows (Unaudited) – Fiscal quarters ended March 23, 2025 and March 24, 2024	6

	Notes to Condensed Consolidated Financial Statements (Unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27

Item 3.	Defaults Upon Senior Securities	27

Item 4.	Mine Safety Disclosures	27

Item 5.	Other Information	28

Item 6.	Exhibits	29

SIGNATURES		30

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Domino’s Pizza, Inc. and Subsidiaries

Conden****sed Consolidated Balance Sheets

(Unaudited)


(In thousands)	March 23, 2025			December 29, 2024
Assets
Current assets:
Cash and cash equivalents	$	304,320		$	186,126
Restricted cash and cash equivalents		197,412			195,370
Accounts receivable, net		302,837			309,104
Inventories		73,236			70,919
Prepaid expenses and other		38,528			40,363
Advertising fund assets, restricted		99,601			103,396
Total current assets		1,015,934			905,278
Property, plant and equipment:
Land and buildings		104,355			104,793
Leasehold and other improvements		196,227			191,718
Equipment		398,077			390,542
Construction in progress		16,336			22,717
		714,995			709,770
Accumulated depreciation and amortization		(420,069	)		(408,591	)
Property, plant and equipment, net		294,926			301,179
Other assets:
Operating lease right-of-use assets		217,097			210,302
Goodwill		12,117			11,578
Capitalized software, net		156,119			155,025
Investment in DPC Dash		106,726			82,699
Deferred income tax assets, net		25,722			23,432
Other assets		48,978			47,520
Total other assets		566,759			530,556
Total assets	$	1,877,619		$	1,737,013
Liabilities and stockholders’ deficit
Current liabilities:
Current portion of long-term debt	$	1,149,764		$	1,149,679
Accounts payable		123,086			85,898
Operating lease liabilities		42,194			39,920
Insurance reserves		24,646			25,658
Dividends payable		61,429			2,246
Advertising fund liabilities		97,403			101,567
Other accrued liabilities		198,238			207,494
Total current liabilities		1,696,760			1,612,462
Long-term liabilities:
Long-term debt, less current portion		3,825,995			3,825,659
Operating lease liabilities		188,547			181,983
Insurance reserves		32,667			33,229
Other accrued liabilities		46,338			45,971
Total long-term liabilities		4,093,547			4,086,842
Stockholders’ deficit:
Common stock		342			343
Additional paid-in capital		892			1,272
Retained deficit		(3,906,833	)		(3,956,474	)
Accumulated other comprehensive loss		(7,089	)		(7,432	)
Total stockholders’ deficit		(3,912,688	)		(3,962,291	)
Total liabilities and stockholders’ deficit	$	1,877,619		$	1,737,013

The accompanying notes are an integral part of these condensed consolidated financial statements.

Domino’s Pizza, Inc. and Subsidiaries

Condense****d Consolidated Statements of Income

(Unaudited)


	Fiscal Quarter Ended
	March 23,			March 24,
(In thousands, except per share data)	2025			2024
Revenues:
U.S. Company-owned stores	$	91,598		$	92,649
U.S. franchise royalties and fees		151,000			150,518
Supply chain		669,924			659,214
International franchise royalties and fees		75,559			71,966
U.S. franchise advertising		123,975			110,300
Total revenues		1,112,056			1,084,647
Cost of sales:
U.S. Company-owned stores		76,911			76,458
Supply chain		591,998			586,319
Total cost of sales		668,909			662,777
Gross margin		443,147			421,870
General and administrative		109,077			101,024
U.S. franchise advertising		123,975			110,300
Refranchising loss		—			133
Income from operations		210,095			210,413
Other income (expense)		24,027			(18,699	)
Interest income		3,945			3,739
Interest expense		(45,585	)		(45,846	)
Income before provision for income taxes		192,482			149,607
Provision for income taxes		42,831			23,783
Net income	$	149,651		$	125,824
Earnings per share:
Common stock - basic	$	4.37		$	3.62
Common stock - diluted	$	4.33		$	3.58

The accompanying notes are an integral part of these condensed consolidated financial statements.

Domino’s Pizza, Inc. and Subsidiaries

Condensed Consolida****ted Statements of Comprehensive Income

(Unaudited)


	Fiscal Quarter Ended
	March 23,		March 24,
(In thousands)	2025		2024
Net income	$	149,651	$	125,824
Currency translation adjustment		343		(1,125	)
Comprehensive income	$	149,994	$	124,699

The accompanying notes are an integral part of these condensed consolidated financial statements.

Domino’s Pizza, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Fiscal Quarter Ended
	March 23,			March 24,
(In thousands)	2025			2024
Cash flows from operating activities:
Net income	$	149,651		$	125,824
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,362			19,869
Refranchising loss		—			133
Loss on sale/disposal of assets		266			90
Amortization of debt issuance costs		1,210			1,266
Benefit for deferred income taxes		(2,290	)		(3,757	)
Non-cash equity-based compensation expense		10,381			11,338
Excess tax benefits from equity-based compensation		(1,569	)		(8,104	)
Benefit for losses on accounts and notes receivable		(57	)		(8	)
Unrealized (gain) loss on investments		(24,027	)		18,699
Changes in operating assets and liabilities		34,244			(9,961	)
Changes in advertising fund assets and liabilities, restricted		(9,095	)		(31,925	)
Net cash provided by operating activities		179,076			123,464
Cash flows from investing activities:
Capital expenditures		(14,745	)		(20,181	)
Other		(1,225	)		(1,305	)
Net cash used in investing activities		(

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