Domino's Pizza, Inc. (DPZ) Bundle
A Brief History of Domino's Pizza, Inc.
Domino's Pizza, Inc. has undergone significant transformations since its inception. Founded in 1960 by Tom Monaghan and his brother James, the company originally operated as a single pizza store in Ypsilanti, Michigan. Over the decades, it expanded rapidly, becoming a leader in the pizza delivery market.
Financial Performance in 2024
As of September 8, 2024, Domino's reported total revenues of $1,080.1 million for the third quarter, up from $1,027.4 million in the same quarter of 2023. This represents a growth of approximately 5.1%.
| Financial Metric | Q3 2024 | Q3 2023 | Three Fiscal Quarters 2024 | Three Fiscal Quarters 2023 |
|---|---|---|---|---|
| Total Revenues | $1,080.1 million | $1,027.4 million | $3,262.5 million | $3,076.4 million |
| Cost of Sales | $656.4 million | $629.2 million | $1,979.9 million | $1,888.0 million |
| Gross Margin | $423.7 million (39.2%) | $398.2 million (38.8%) | $1,282.6 million (39.3%) | $1,188.4 million (38.6%) |
| Net Income | $146.9 million | $147.7 million | $414.7 million | $361.8 million |
Store Growth and Sales Performance
In the third quarter of 2024, Domino's experienced significant growth in same-store sales. U.S. Company-owned stores saw an increase of 3.1%, while U.S. franchise stores reported a 3.0% increase. Additionally, the company achieved a net store growth of 72 stores globally during the quarter.
| Store Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| U.S. Company-Owned Same Store Sales Growth | 3.1% | 2.9% |
| U.S. Franchise Same Store Sales Growth | 3.0% | -0.7% |
| Total Global Net Store Growth | 72 stores | 48 stores |
Operational Highlights
Domino's operational efficiency has been bolstered by its focus on technology and delivery innovations. The company reported a significant increase in digital transactions, which have become a crucial revenue driver. In 2024, U.S. franchise royalties and fees increased to $144.1 million, a 4.2% increase from the previous year.
Liquidity and Capital Resources
As of September 8, 2024, Domino's maintained a strong liquidity position with total unrestricted cash and cash equivalents of $189.1 million. The company also had no outstanding borrowings under its variable funding notes, indicating a solid capital structure for future investments and operational needs.
| Liquidity Metrics | Amount |
|---|---|
| Unrestricted Cash and Cash Equivalents | $189.1 million |
| Available Borrowing Capacity | $278.9 million |
Market Positioning
Domino's continues to strengthen its market position across more than 90 international markets. Global retail sales for the third quarter of 2024 reached $4.392 billion, with a reported growth of 5.1% compared to the previous year.
| Global Retail Sales | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Global Retail Sales | $4.392 billion | $4.224 billion |
A Who Owns Domino's Pizza, Inc. (DPZ)
Major Shareholders
As of 2024, the ownership of Domino's Pizza, Inc. (DPZ) is comprised of various institutional and individual investors. The largest shareholders include:
| Shareholder Name | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.75% | 3,024,153 |
| BlackRock, Inc. | 8.10% | 2,851,103 |
| State Street Corporation | 6.50% | 2,295,236 |
| Wellington Management Co. LLP | 5.25% | 1,846,207 |
| FMR LLC (Fidelity) | 4.80% | 1,689,020 |
Insider Ownership
Insider ownership also plays a significant role in the company’s equity structure. Key insiders include:
| Name | Position | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Richard E. Allison Jr. | CEO | 0.21% | 73,000 |
| David A. Brandon | Former CEO | 0.15% | 52,000 |
| G. Patrick Doyle | Former CEO | 0.10% | 35,000 |
Current Stock Performance
The stock performance of Domino's Pizza, Inc. has shown resilience and growth over the past year. As of September 2024, the stock price is approximately:
| Date | Stock Price (DPZ) | Market Capitalization |
|---|---|---|
| September 8, 2024 | $174.00 | $6.03 billion |
Financial Overview
In the third quarter of 2024, Domino's reported the following financial highlights:
| Metric | Value |
|---|---|
| Total Revenues | $1,080.1 million |
| Net Income | $146.9 million |
| Earnings Per Share (EPS) | $4.22 |
| Gross Margin | 39.2% |
Recent Developments
Domino's has continued to expand its market presence with the opening of additional stores globally. The company reported a net store growth of:
| Period | New Openings | Total Store Count |
|---|---|---|
| Q3 2024 | 72 | 20,930 |
As of 2024, the company's focus remains on enhancing its digital ordering platforms and improving delivery efficiency, which are crucial for maintaining competitive advantage in the fast-food sector.
Domino's Pizza, Inc. (DPZ) Mission Statement
Current Mission Statement
As of 2024, Domino's Pizza, Inc. emphasizes its commitment to providing exceptional pizza and service through innovation and a focus on customer satisfaction. The mission statement reflects the company's goal to be the leader in the pizza delivery and carryout industry by leveraging technology and operational excellence.
Performance Metrics
Domino's continues to measure its success through various performance metrics, including same-store sales growth and overall revenue increases. Below is a summary of key performance statistics for the third quarter and three fiscal quarters of 2024 compared to the previous year:
| Metric | Q3 2024 | Q3 2023 | Three Fiscal Quarters 2024 | Three Fiscal Quarters 2023 |
|---|---|---|---|---|
| Total Revenues | $1,080.1 million | $1,027.4 million | $3,262.5 million | $3,076.4 million |
| Net Income | $146.9 million | $147.7 million | $414.7 million | $361.8 million |
| Earnings Per Share (Diluted) | $4.19 | $4.18 | $11.80 | $10.19 |
| U.S. Same Store Sales Growth | 3.1% | 2.9% | 5.4% | 5.2% |
| International Same Store Sales Growth | 0.8% | 3.3% | 1.1% | 2.6% |
Financial Overview
Domino's financial health is illustrated by its revenue streams, which comprise sales from company-owned and franchised stores, along with supply chain revenues. The following table summarizes the revenue breakdown for Q3 2024:
| Revenue Source | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| U.S. Company-Owned Stores | $89.2 | $86.3 |
| U.S. Franchise Royalties and Fees | $144.1 | $138.3 |
| Supply Chain Revenues | $651.3 | $618.1 |
| International Franchise Royalties and Fees | $74.6 | $73.1 |
| Total Revenues | $1,080.1 | $1,027.4 |
Market Position
Domino's holds a significant position in the global pizza market. As of September 8, 2024, the total store count is as follows:
| Store Type | Count (as of September 8, 2024) |
|---|---|
| U.S. Company-Owned Stores | 291 |
| U.S. Franchise Stores | 6,639 |
| Total U.S. Stores | 6,930 |
| International Stores | 14,072 |
| Total Stores Worldwide | 21,002 |
Strategic Goals
Domino's aims to enhance its market share through technological advancements, improved delivery systems, and innovative marketing strategies. The company continues to focus on expanding its digital ordering platforms to meet the evolving needs of its customers.
Conclusion
Domino's Pizza, Inc. remains committed to its mission of delivering quality products and outstanding service while driving growth and profitability through strategic initiatives and operational efficiency.
How Domino's Pizza, Inc. (DPZ) Works
Business Model Overview
Domino's Pizza, Inc. operates a franchise-based business model with a combination of company-owned and franchised stores. As of September 8, 2024, the company has a total of 20,930 stores globally, comprising 289 company-owned stores and 6,617 U.S. franchise stores, alongside 14,024 international stores.
Financial Performance
In the third quarter of 2024, Domino's reported total revenues of $1,080.1 million, an increase of 5.1% compared to $1,027.4 million in the third quarter of 2023. For the three fiscal quarters ended September 8, 2024, total revenues reached $3,262.5 million, up 6.0% from $3,076.4 million in the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Three Fiscal Quarters 2024 | Three Fiscal Quarters 2023 |
|---|---|---|---|---|
| Total Revenues | $1,080.1 million | $1,027.4 million | $3,262.5 million | $3,076.4 million |
| Net Income | $146.9 million | $147.7 million | $414.7 million | $361.8 million |
| Operating Income | $198.8 million | $189.4 million | $605.3 million | $562.3 million |
| Gross Margin | 39.2% | 38.8% | 39.3% | 38.6% |
Cost Structure
The total cost of sales for the third quarter of 2024 was $656.4 million, which is 60.8% of total revenues. This represents a slight decrease from 61.2% in Q3 2023. For the three fiscal quarters, the total cost of sales was $1,979.9 million, or 60.7% of revenues.
Same Store Sales Growth
Same store sales in U.S. company-owned stores increased by 3.1% in Q3 2024, up from 2.9% in Q3 2023. Over the three fiscal quarters, same store sales rose by 5.4% in 2024, compared to 5.2% in 2023.
| Same Store Sales Growth | Q3 2024 | Q3 2023 | Three Fiscal Quarters 2024 | Three Fiscal Quarters 2023 |
|---|---|---|---|---|
| U.S. Company-Owned Stores | +3.1% | +2.9% | +5.4% | +5.2% |
| U.S. Franchise Stores | +3.0% | (0.7%) | +4.4% | +0.8% |
| International Stores | +0.8% | +3.3% | +1.1% | +2.6% |
Supply Chain Operations
Domino's supply chain segment generated revenues of $651.3 million in Q3 2024, an increase of 5.4% from $618.1 million in Q3 2023. For the three fiscal quarters, supply chain revenues totaled $1,969.8 million, compared to $1,858.0 million in the same period of 2023.
Franchise Operations
Revenues from U.S. franchise royalties and fees increased by $5.8 million, or 4.2%, in Q3 2024, totaling $144.1 million. This was driven by higher same store sales and net store growth.
| Franchise Revenues | Q3 2024 | Q3 2023 | Three Fiscal Quarters 2024 | Three Fiscal Quarters 2023 |
|---|---|---|---|---|
| U.S. Franchise Royalties and Fees | $144.1 million | $138.3 million | $442.2 million | $410.5 million |
| U.S. Franchise Advertising | $120.9 million | $111.5 million | $356.2 million | $335.7 million |
General and Administrative Expenses
General and administrative expenses increased by $6.8 million, or 7.0%, in Q3 2024, totaling $104.0 million.
Liquidity and Capital Resources
As of September 8, 2024, Domino's had working capital of $174.4 million, excluding restricted cash and cash equivalents of $185.4 million. The company has access to $278.9 million in borrowing capacity under its variable funding notes.
How Domino's Pizza, Inc. (DPZ) Makes Money
Revenue Streams
Domino's Pizza generates revenue through various channels, primarily including:
- U.S. Company-owned stores
- U.S. franchise royalties and fees
- International franchise royalties and fees
- Supply chain sales
- U.S. franchise advertising contributions
Financial Performance Overview
As of the third quarter of 2024, Domino's reported total revenues of $1,080.1 million, marking a 5.1% increase compared to $1,027.4 million in the same quarter of 2023. For the three fiscal quarters of 2024, total revenues reached $3,262.5 million, up 6.0% from $3,076.4 million in 2023.
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Three Fiscal Quarters 2024 ($ millions) | Three Fiscal Quarters 2023 ($ millions) |
|---|---|---|---|---|
| U.S. Company-owned stores | 89.2 | 86.3 | 274.1 | 258.9 |
| U.S. Franchise royalties and fees | 144.1 | 138.3 | 442.2 | 410.5 |
| Supply chain | 651.3 | 618.1 | 1,969.8 | 1,858.0 |
| International franchise royalties and fees | 74.6 | 73.1 | 220.3 | 213.3 |
| U.S. Franchise advertising | 120.9 | 111.5 | 356.2 | 335.7 |
U.S. Company-Owned Stores
In the third quarter of 2024, revenues from U.S. Company-owned store operations increased by $2.9 million, or 3.4%, driven mainly by higher same-store sales, which rose by 3.1% in Q3 2024 compared to 2.9% in Q3 2023.
Franchise Revenues
U.S. franchise royalties and fees increased by $5.8 million, or 4.2%, in Q3 2024. The increase was attributed to higher same-store sales and net store growth. U.S. franchise same-store sales increased by 3.0% in Q3 2024, compared to a decline of 0.7% in Q3 2023.
Supply Chain Revenues
Supply chain revenues increased by $33.2 million, or 5.4%, in Q3 2024, primarily due to higher order volumes and a 1.3% increase in food basket pricing to stores. For the three fiscal quarters of 2024, supply chain revenues totaled $1,969.8 million, up 6.0% from the previous year.
Cost of Sales and Gross Margin
For Q3 2024, the total cost of sales was $656.4 million, representing 60.8% of total revenues. The gross margin for this period was $423.7 million, or 39.2% of total revenues, an improvement from 38.8% in Q3 2023.
| Cost of Sales Breakdown | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Three Fiscal Quarters 2024 ($ millions) | Three Fiscal Quarters 2023 ($ millions) |
|---|---|---|---|---|
| Total cost of sales | 656.4 | 629.2 | 1,979.9 | 1,888.0 |
| Gross margin | 423.7 | 398.2 | 1,282.6 | 1,188.4 |
General and Administrative Expenses
General and administrative expenses increased by $6.8 million, or 7.0%, in Q3 2024, totaling $104.0 million, primarily due to higher labor costs.
Net Income
Net income for Q3 2024 was reported at $146.9 million, down slightly from $147.7 million in Q3 2023. For the three fiscal quarters, net income increased to $414.7 million from $361.8 million in 2023.
Store Growth
Domino's experienced a global net store growth of 72 stores in Q3 2024 and 411 stores over the three fiscal quarters. This growth is critical for expanding its revenue base and franchise network.
Conclusion
Domino's Pizza continues to leverage its diverse revenue streams and operational efficiencies to drive growth and profitability, reflecting a robust business model in the competitive fast-food industry.
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