Domino's Pizza Q4 Highlights: ~4% Sales Growth, Bottom-Line Beat, 10% Dividend Hike, Reduced Outlook & More

Domino's Pizza Inc DPZ reported fourth-quarter FY22 sales growth of 3.6% year-on-year to $1.39 billion, missing the consensus of $1.44 billion.
Global retail sales increased 5.2%, excluding the negative impact of foreign currency. Without adjusting for the impact of foreign currency, global retail sales declined 1.1%.
Same-store sales in the U.S. grew 0.9%, while International same-store sales (excluding foreign currency impact) increased 2.6%.
Russell Weiner, Domino's CEO said, "The Domino's system has a lot to be proud of while also having opportunities to address. We experienced significant pressure on our U.S. delivery business in 2022 and focused our efforts on creating solutions."
Gross margin for the quarter contracted 90 basis points to 36.8%. Operating margin for the quarter expanded 130 basis points to 17.9%.
EPS of $4.43 beat the analyst consensus of $3.95.
The company held $395.2 million in cash and equivalents and had a total debt of $5 billion as of Jan. 1, 2023.
Net cash provided by operating activities for the year totaled $475.3 million, with a free cash flow of $388.1 million.
On Feb. 21, 2023, the company's Board of Directors approved a 10% increase to the quarterly dividend. The $1.21 per share quarterly dividend was declared for shareholders of record as of Mar. 15, 2023, to be paid on Mar. 30, 2023.
Outlook: Domino's Pizza reduced its two-to three-year outlook for global retail sales growth, excluding foreign currency impact, to 4%-8% (prior view 6%-10%) and global net unit growth to 5%-7% (prior view 6%-8%).
The company expects results for fiscal 2023 to come in towards the low-end of the ranges for both metrics.
Also Read: Once Loved Pizza Stock Up 5,000% Is Now Torched. What's Going On? Are We Not Eating Pizza Anymore?
Price Action: DPZ shares are trading lower by 10.93% at $310.39 on the last check Thursday.

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