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Domino's Pizza, Inc.(DPZ) announced its financial results for the second fiscal quarter ended June 18, 2023. The pizza giant reported strong revenues, reaching $1.02 billion, and a net income of $109.4 million during the quarter. Let's take a closer look at the financial statements to understand the company's performance.
Net Income
Domino's Pizza posted a net income of $109.4 million for the second fiscal quarter of 2023. This represents an increase compared to the same period last year, when the company recorded a net income of $102.5 million. The growth in net income indicates the company's ability to efficiently manage its operations and control costs, resulting in improved profitability.
During the second fiscal quarter of 2023, Domino's Pizza generated total revenues of $1.02 billion. The revenue figure includes various sources, such as sales from U.S. company-owned stores, U.S. franchise royalties and fees, supply chain revenues, and international franchise royalties and fees. Despite economic challenges and competitive pressures, the company managed to maintain its revenue levels, signifying a strong demand for its products and services.
The breakdown of revenues for the quarter is as follows:
U.S. Company-owned stores: $87.7 million
U.S. franchise royalties and fees: $139.3 million
Supply chain: $615.7 million
International franchise royalties and fees: $70.5 million
U.S. franchise advertising: $111.5 million
The condensed consolidated balance sheets of Domino's Pizza, Inc. and its subsidiaries as of June 18, 2023, and January 1, 2023, show the company's assets and liabilities.
Assets
Current assets, including cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, net, inventories, and prepaid expenses, totaled $799.6 million.
Other assets, including operating lease right-of-use assets, goodwill, capitalized software, net, investment in DPC Dash, deferred income tax assets, net, and other assets, amounted to $500.6 million.
The total assets of the company stood at $1,596.2 million as of June 18, 2023.
Current liabilities, such as current portion of long-term debt, accounts payable, operating lease liabilities, insurance reserves, dividends payable, advertising fund liabilities, and other accrued liabilities, amounted to $547.5 million.
Long-term liabilities, including long-term debt (less current portion), operating lease liabilities, insurance reserves, deferred income tax liabilities, and other accrued liabilities, were $5,215.2 million.
The stockholders' deficit was $4,166.6 million, which includes common stock, additional paid-in capital, retained deficit, and accumulated other comprehensive loss.
The total liabilities and stockholders' deficit were reported at $1,596.2 million.
The company's condensed consolidated statements of income revealed that Domino's Pizza generated $404.7 million in gross margin and $195.4 million in income from operations during the quarter.
Overall, the financial statements indicate that Domino's Pizza, Inc. had a solid second fiscal quarter, with strong revenues and improved net income, demonstrating its resilience and competitiveness in the pizza industry.