Domino's Finishes 2014 Strong as Sales Surge
2014 was a good year to be in the pizza business.
On Tuesday, Domino's announced same-store sales grew 11 percent domestically in the quarter and 6 percent internationally, capping off the 21st straight year of international same-stores sales growth.
Additionally, the chain's revenue increased 13.5 percent to $643 million in the fourth quarter, beating the $615.2 million analysts were expecting. According to Domino's the revenue boost was due to the elevated cost of ingredients (specifically cheese and meats) sold to franchisees and increased sales of equipment to stores as part of its remodeling efforts.
"Fundamental strength, with a growing global store base, robust sales and technological innovation, continues to truly drive the business," Domino's CEO J. Patrick Doyle said in a statement. "Franchisees are both energized and financially sound, which is fueling our store reimage program, sales and store growth."
Last week, Domino's kicked off a campaign to get any less than "energized" franchisees moving on the pizza chain's program to drop the word 'pizza' from all signage, referring to the chain simply as 'Domino's.' Customers are being encouraged to upload photos of any mislabeled Domino's Pizza signs on Instagram, promising "informants" a chance to enter in a free pizza giveaway.
While the chain saw a nice sales boost in the fourth quarter, its profit came in slightly lower than expected at $48 million, or 85 cents per share. Excluding charges, the chain reported a profit of 91 cents per share. Analysts were expecting a profit of 93 cents.
The company also reported adjusted full-year earnings of $2.90 a share, a jump of 18 percent from last year.