Domino’s Pizza Inc. in Ann Arbor Township, which last year became the largest pizza company in the world based on global retail sales, today announced 2017 fiscal revenue of $2.8 billion, up from $2.5 billion in 2016.
During the same period, the company reported net income of $277.9 million in 2017, up from $214.7 million the year before. At the end of December, the company said it and its franchisees had 14,856 stores around the world in more than 85 markets, up from 13,811 in 2016.
The company also reported that at the end of December, it had largely completed a plan to convert all its stores to a “Pizza Theater” design where customers can watch their orders being prepared. On average, the company and its franchisees sell more than 2.5 million pizzas per day.
In turn, domestic same store sales grew 7.7 percent last year, while the international division saw its revenue increase by 3.4 percent. In fiscal 2017, the company opened 1,045 net new stores, comprised of 216 net new domestic stores and 829 net new international stores.
“Without question, we are pleased with our fourth quarter and full-year 2017 performance — with results that continued to outpace the industry,” says J. Patrick Doyle, president and CEO of Domino’s Pizza, who will retire in June.
“Our 2017 global retail sales growth and domestic comps outperformed the high-end of our stated three to five-year outlook. This, along with tremendous net store growth and an incredibly low number of closures, helps validate that our long-term fundamental strength is well intact heading into 2018.”
The company stated that the Tax Cuts and Jobs Act that became law in December was not material to its 2017 financial statements, based on preliminary estimates, but it anticipates the law will significantly lower its effective tax rate in future periods.
In January, Domino’s Pizza reaffirmed its three- to five-year outlook as follows: domestic same store sales growth (3-6 percent); international same store sales growth (3-6 percent); net unit growth (6-8 percent); and global retail sales growth (8-12 percent).
As of December 31, 2017, the Company had approximately:
- $35.8 million of unrestricted cash and cash equivalents;
- $3.15 billion in total debt; and
- $128.3 million of available borrowings under its $175.0 million variable funding notes, net of letters of credit issued of $46.7 million. The Company has collateralized $36.7 million of its letters of credit with restricted cash, and has the ability to access this cash with minimal notice.
The Company invested $90.0 million in capital expenditures during fiscal 2017, versus $58.6 million in fiscal 2016. Free cash flow, as reconciled below to net cash provided by operating activities, as determined under U.S. generally accepted accounting principles (GAAP), was approximately $249.0 million in fiscal 2017.