Domino's Pizza, Inc. (DPZ) has reported a 37.44 percent jump in profit for the quarter ended Mar. 26, 2017. The company has earned $62.47 million, or $1.26 a share in the quarter, compared with $45.45 million, or $0.89 a share for the same period last year.
Revenue during the quarter grew 15.77 percent to $624.22 million from $539.18 million in the previous year period. Gross margin for the quarter expanded 4 basis points over the previous year period to 31.05 percent. Total expenses were 81.41 percent of quarterly revenues, down from 81.69 percent for the same period last year. This has led to an improvement of 28 basis points in operating margin to 18.59 percent.
Operating income for the quarter was $116.03 million, compared with $98.71 million in the previous year period.
"It was a great start to 2017, as momentum continued with solid growth in our international business, and our third consecutive quarter of double-digit same store sales growth in the U.S.," said J. Patrick Doyle, Domino's president and chief executive officer. "The ultimate measure of customer satisfaction is more customers choosing to do business with you. The growth we are experiencing both in store counts and customer visits is a reflection of great commitment and execution by our franchisees and team members."
Operating cash flow improves significantly
Domino's Pizza, Inc. has generated cash of $85.69 million from operating activities during the quarter, up 399.73 percent or $68.54 million, when compared with the last year period.
The company has spent $50.29 million cash to meet investing activities during the quarter as against cash inflow of $17.49 million in the last year period. It has incurred capital expenditure of $11.67 million on net basis during the quarter, up 33.41 percent or $2.92 million from year ago period.
The company has spent $26.16 million cash to carry out financing activities during the quarter as against cash inflow of $10.42 million in the last year period.
Cash and cash equivalents stood at $52.09 million as on Mar. 26, 2017, down 70.78 percent or $126.16 million from $178.25 million on Mar. 27, 2016.
Working capital drops significantly
Domino's Pizza, Inc. has witnessed a decline in the working capital over the last year. It stood at $159.20 million as at Mar. 26, 2017, down 45.62 percent or $133.56 million from $292.76 million on Mar. 27, 2016. Current ratio was at 1.43 as on Mar. 26, 2017, down from 1.88 on Mar. 27, 2016.
Cash conversion cycle (CCC) has decreased to 2 days for the quarter from 7 days for the last year period. Days sales outstanding went down to 19 days for the quarter compared with 20 days for the same period last year.
Days inventory outstanding has decreased to 4 days for the quarter compared with 9 days for the previous year period. At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Domino's Pizza, Inc. has recorded a decline in total debt over the last one year. It stood at $2,179.56 million as on Mar. 26, 2017, down 1.60 percent or $35.44 million from $2,215 million on Mar. 27, 2016. Total debt was 293.56 percent of total assets as on Mar. 26, 2017, compared with 269.87 percent on Mar. 27, 2016.
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