Domino’s Pizza Raises Dividend By 25%

Domino’s Pizza (DPZ) has raised its quarterly dividend by 25% as it reported better-than-expected financial results for the fourth quarter of 2023.

Going forward, Domino’s will pay its shareholders a quarterly dividend of $1.51 U.S. per share, up from $1.21 U.S. currently.

Domino’s board of directors also approved a new stock buyback of up to $1 billion U.S., which is in addition to the $141.3 million U.S. that’s remaining on a current share repurchase program.

The dividend increase and stock buyback were announced along with strong Q4 2023 results from Domino’s Pizza.

The company announced earnings per share (EPS) of $4.48 U.S., which topped analyst expectations of $4.38 U.S.

Revenue in the final quarter of last year came in at $1.40 billion U.S., which was slightly below the $1.42 billion U.S. forecast on Wall Street.

Despite the positive results, Domino’s reported that its operating margins declined 1.6 percentage points in Q4 from a year ago due to higher labour and insurance costs.

However, same-store sales in the U.S. grew by 2.8% from a year earlier. Same-store sales in overseas markets were largely flat in the quarter.

Domino’s Pizza opened more than 300 overseas locations in Q4, and about 100 new stores in America.

Last December, Domino’s announced a new growth strategy that aims to open 1,100 stores through 2028 and increase its retail sales by 7% per year.

The pizza chain also began working with Uber (UBER) last year as it tries to reach wealthier households and improve sales in its delivery channel.

The stock of Domino’s Pizza has risen 47% over the last 12 months and currently trades at $433.65 U.S. per share.

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