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Domino’s 1Q15 Earnings See Double-Digit Surge

Adam Jones

Domino's 1Q15 Earnings Deliver Tasty Treat to Investors (Part 1 of 5)

Earnings per share

Domino’s Pizza Inc. (DPZ) released its first quarter earnings on April 23, 2015. The company reported adjusted earnings per share (or EPS) of $0.81, a 17% growth compared to an adjusted EPS of $0.69 in the corresponding quarter in 2014.

The company reported an operating income of $94 million, which increased by 12% from $84.2 million in the corresponding quarter a year ago. Consolidated operating profit margins declined to 18.8% as a percentage of sales. We’ll look at Domino’s financial performance in more detail later in this series.

Company overview

Domino’s Pizza operates pizza delivery fast food concept restaurants in the United States and 70 markets around the world. Domino’s primarily sells all varieties  of pizza,  including thin crust, stuffed crust, regular crust, handmade pan crust, Cinna Stix, and Chocolate Lava Cake.

Domino’s Pizza operates more than 10,800 restaurants under a combination of company-owned and franchised business models. The company also has dough manufacturing and supply chain centers, a vegetable processing center, and a thin crust manufacturing center.

Domino’s competes with famous pizza chain Pizza Hut under the umbrella of Yum! Brands (YUM) ,  which makes up about 1.4% of the Consumer Discretionary Select Sector SPDR Fund (XLY ),  and Papa John’s (PZZA). It also faces competition from local pizzerias and ready-to-make pizzas at home sold by grocers such as Wal-Mart (WMT). According to Pizza Marketplace’s “Your Guide to Pizza,” there were 70,000 pizzerias in the  United States  as of June 2013.

Topics in this quarterly overview

In this quarterly overview series on Domino’s, we’ll take a deeper look into the earnings and key valuation metrics such as same-store sales and unit growth. We’ll also look at management’s strategic initiatives and the market’s reaction to the earnings.

Continue to Part 2

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