Research Desk Line-up: Dunkin' Brands Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 3, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Domino's Pizza, Inc. (NYSE: DPZ), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DPZ, following the Company's announcement of its financial results on July 25, 2017, for the second quarter fiscal 2017. The Company's revenue increased 14.8% on a y-o-y basis and surpassed revenue and earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Restaurants industry. Pro-TD has currently selected Dunkin' Brands Group, Inc. (NASDAQ: DNKN) for due-diligence and potential coverage as the Company reported on July 27, 2017, its financial results for Q2 2017 which ended on July 01, 2017. Register for a free membership today, and be among the early birds that get access to our report on Dunkin' Brands when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DPZ; also brushing on DNKN. With the links below you can directly download the report of your stock of interest free of charge at:
For the three months ended June 18, 2017, Domino's Pizza's total revenue increased 14.8% on a y-o-y basis to $628.61 million from $547.34 million in Q2 FY16. The increase was mainly due to higher supply chain revenues from increased volumes. The revenue surpassed analysts' expectations of $613.4 million.
During Q2 FY17, Domino's Pizza's domestic same store sales growth was 9.5% compared to 9.7% in Q2 FY16. For the reported quarter, the Company's international same store sales growth was 2.6% compared to 7.1% in Q2 FY16. During Q2 FY17, the Company added 217 new stores worldwide.
For the reported quarter, Domino's Pizza's earnings before interests, taxes, depreciation, and amortization (EBITDA) margin decreased 33 basis points to 19.62% on a y-o-y basis from 20.95% in Q2 FY16.
During Q2 FY17, Domino's Pizza's operating margin increased 12.2% to $192.85 million from $171.84 million in the same quarter last year. The operating margin in Company-owned stores decreased 380 basis points to 20.8% of revenue compared to 24.6% of revenue in the year ago same period. The decrease was primarily due to increased insurance expense as well as higher transaction-related expenses and increased labor costs.
For the reported quarter, Domino's Pizza's general and administrative (G&A) expenses increased 17.4% to $79.98 million from $68.14 million in Q2 FY16. The increase was due to the Company's planned investment in technological initiatives, including investments in e-commerce.
During Q2 FY17, the Company's effective tax rate was 25.7% compared to 37.5% in Q1 FY17. The decrease was due to adoption of ASU 2016-09.
During Q2 FY17, Domino's Pizza's net income increased 33.5% to $65.74 million from $49.26 million in Q2 FY16. The increase was mainly due to an increase in same store sales growth and store count as well as higher supply chain volumes and lower food costs. For the reported quarter, the Company's diluted earnings per share (EPS) increased 34.7% to $1.32 from $0.98 in Q2 FY16. The diluted EPS surpassed analysts' expectations of $1.22.
As of July 01, 2017, Domino's Pizza's cash and cash equivalents increased 22% to $52.24 million from $42.82 million in Q4 FY16.
During Q2 FY17, the Company's inventories decreased 6.3% to $37.66 million from $40.18 million in Q4 FY16.
For the reported quarter, Domino's Pizza's accounts payable decreased 6.2% to $104.62 million from $111.51 million in Q4 FY16. During H1 FY17, the Company's total debt increased 1.4% to $2.18 billion from $2.15 billion in H1 FY16.
During H1 FY17, Domino's Pizza's cash provided by operating activities increased 65.7% to $115.09 million from $69.45 million in H1 FY16. During H1 FY17, the Company's capital expenditure was $25.2 million compared to $25.0 million in H1 FY16.
On July 24, 2017, Domino's Pizza completed its recapitalization with the receipt of $1.9 billion from gross proceeds. The Company borrowed $1.6 billion of fixed rate senior secured notes and $300.0 million of floating rate senior secured notes and entered into a new $175.0 million variable funding note facility, which replaced its previous $125.0 million variable funding note facility.
Domino's Pizza will use a portion of the proceeds from the recapitalization to repay the remaining $910.5 million in outstanding principal and interest under its 2012 fixed rate notes on July 27, 2017. The proceeds will also be used to pay transaction-related fees and expenses in connection with the 2017 recapitalization and to pre-fund a portion of the principal and interest payable on the 2017 notes.
For FY17, Domino's Pizza is expecting interest expenses to be $122 million. For Q3 FY17, the Company estimates interest expenses to be $33 million on a pretax basis.
On Wednesday, August 02, 2017, the stock closed the trading session at $192.35, climbing 3.16% from its previous closing price of $186.45. A total volume of 1.83 million shares have exchanged hands, which was higher than the 3-month average volume of 837.77 thousand shares. Domino's Pizza's stock price soared 2.82% in the last three months, 12.56% in the past six months, and 32.24% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 20.79%. The stock is trading at a PE ratio of 38.26 and has a dividend yield of 0.96%. At Wednesday's closing price, the stock's net capitalization stands at $9.25 billion.
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