Domino's Pizza, Inc. has recently released its 10-K report, providing a detailed insight into its operations and financial performance. The company, founded in 1960 and based in Ann Arbor, Michigan, operates as a pizza company in the United States and internationally, with over 20,500 locations in more than 90 markets. Domino's operates through three segments: U.S. Stores, International Franchise, and Supply Chain, offering a variety of menu items including pizzas, oven-baked sandwiches, pasta, chicken, desserts, and soft drinks.
The fiscal year typically includes 52 weeks, comprised of three twelve-week quarters and one sixteen-week quarter. In the Management's Discussion and Analysis of Financial Condition and Results of Operations, Domino's discusses the results of its operations for the fiscal year ended December 31, 2023, compared to the fiscal year ended January 1, 2023.
In fiscal 2023, Domino's reported several highlights. Global retail sales, excluding foreign currency impact, increased by 5.4% compared to 2022. U.S. retail sales increased by 3.1%, while international retail sales, excluding foreign currency impact, increased by 7.7%. Same store sales grew by 1.6% in U.S. stores and 1.7% in international stores, excluding foreign currency impact. The company also experienced a global net store growth of 711 net stores, with 168 net store openings in the U.S. and 543 net store openings internationally.
Domino's financial results are largely driven by retail sales at its franchised and Company-owned stores. Changes in retail sales are primarily driven by same store sales growth and net store growth. The company believes its global retail sales growth, emphasis on technology, operations, and marketing initiatives have combined to strengthen its brand.
In 2023, U.S. stores reported global retail sales of $9,026.1 million, while international stores reported $9,249.7 million, resulting in total global retail sales of $18,275.8 million. The global retail sales growth, excluding foreign currency impact, was +3.1% for U.S. stores and +7.7% for international stores.
The company's critical accounting estimates include long-lived assets, casualty insurance reserves, and income taxes, all of which require management to make estimates and judgments that affect the reported financial results.
In conclusion, Domino's Pizza, Inc. has demonstrated growth in global retail sales, same store sales, and net store growth in fiscal 2023, reflecting a positive trend for the company.
