Domino's Sets Sales Records

"Our positive trend continues," announced David A. Brandon, Domino's chairman and chief executive officer. "I would characterize the first quarter as one where we swung for a double and hit it over the fence."

Calling same-store sales performance in the first quarter ending March 27 as "truly special," Brandon said the company's track record remains strong. "Our track record as a brand and a company is one of steady, controlled growth, as evidenced by the fact we have not had a negative annual same store sales performance in the past 11 years," he said.

Despite the rising cost of cheese, boxes and gasoline, the chain's net income increased $6.6 million to $25 million during the first quarter of 2005 compared to the same period a year earlier. Global retail sales were up 13.8% overall with sales rising 11.9% domestically and 18.8% internationally during the quarter.

For stockholders that was good news. Shareholders saw diluted per share earnings of 35 cents during the period compared to 28 cents during the first quarter of 2004. News of the company's strong performance sent Domino's stock up 96 cents to $19.27 per share by the close of business Tuesday.

"We had a very strong first quarter to start off the year," Harry J. Silverman, Domino's chief financial officer told investors Tuesday in a conference call outlining the company's performance.

Silverman said sales in the chain's domestic stores posted an 11.2% increase in consolidated comps, the best in Domino's 44-year history while international same-store sales increased for the 45th quarter in a row.

Most of the company's growth, he noted, has been in the international market where 70% of net stores were added during the last four quarters. Domino's, which operates nearly 7,800 stores worldwide, has added 42 stores during the last quarter and 326 over the last four quarters, making the company one of the fastest growing pizza delivery firms in the world.