Global retail sales growth (excluding foreign currency impact) of 7.3% U.S. same store sales growth of 5.6%  International same store sales growth (excluding foreign currency impact) of 0.9% Global net store growth of 164 Income from operations increased 18.6%; excluding the negative impact of foreign currency exchange rates on international franchise royalty revenues of $1.4 million, income from operations increased 19.4% ANN ARBOR, Mich., April 29, 2024 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE:DPZ), the largest pizza company in the world, announced results for the first quarter of 2024. "Our first quarter results demonstrated that our Hungry for MORE strategy is off to a strong start: delivering MORE sales, MORE stores, and MORE profits," said Russell Weiner, Domino's Chief Executive Officer. "The Renowned Value we created through our new and improved Domino's Rewards loyalty program drove outsized comp performance, which flowed through to the bottom line with double-digit profit growth. Importantly, our growth in the U.S. came through positive order counts in both our carryout and delivery businesses for the second quarter in a row. Further, this order growth was across all income cohorts. In Q1 we also went live with marketing on Uber Eats, and we remain on track to exit the year at 3% or MORE of sales coming through this new channel. We are laser focused on driving franchisee profitability and store growth, which will fuel the Company's ability to win and create meaningful long-term value for our shareholders." First Quarter 2024 Operational and Financial Highlights (Unaudited): The tables below outline certain statistical measures utilized by the Company to analyze its performance, as well as key financial results. This historical data is not necessarily indicative of results to be expected for any future period. Refer to Comments on Regulation G below for additional details, including definitions of these statistical measures and certain reconciliations. First Quarter 2024 2023 Global retail sales: (in millions of U.S. dollars) U.S. stores $ 2,212.0 $ 2,051.0 International stores 2,152.1 2,062.7 Total $ 4,364.1 $ 4,113.7   First Quarter 2024 2023 Global retail sales growth: (versus prior year period,    excluding foreign currency impact) U.S. stores + 7.8 % + 5.1 % International stores (1) + 6.8 % + 6.5 % Total (2) + 7.3 % + 5.9 % Same store sales growth: (versus prior year period) U.S. Company-owned stores + 8.5 % + 7.3 % U.S. franchise stores + 5.5 % + 3.4 % U.S. stores + 5.6 % + 3.6 % International stores (excluding foreign currency impact) + 0.9 % + 1.2 % (1) 2024 first quarter figure excludes the impact of the Russia market. Including the impact of the Russia market, international stores retail sales growth, excluding foreign currency impact, was 6.1%. (2) 2024 first quarter figure excludes the impact of the Russia market. Including the impact of the Russia market, total global retail sales growth, excluding foreign currency impact, was 7.0%.   U.S. Company-owned Stores U.S. FranchiseStores TotalU.S. Stores InternationalStores Total First quarter of 2024 store counts: Store count at December 31, 2023 288 6,566 6,854 13,737 20,591 Openings 3 19 22 181 203 Closings (1) (1) (2) (37) (39) Transfers (1) 1 — — — Store count at March 24, 2024 289 6,585 6,874 13,881 20,755 First quarter 2024 net store growth 2 18 20 144 164 Trailing four quarters net store growth 5 161 166 581 747 Trailing four quarters net store growth, excludingRussia (1) 5 161 166 734 900 (1) As previously announced, the remaining 143 net stores in Russia were reflected as closed in the third quarter of 2023. Including those remaining closures, 153 net stores in Russia were closed in the trailing four quarters ended March 24, 2024. Refer to Comments on Regulation G and Russia Market discussion below for additional details.   First Quarter (In millions, except percentages, percentage points, per share data and leverage ratio) 2024 2023 Increase/(Decrease) Total revenues $1,084.6 $1,024.4 + 5.9 % U.S. Company-owned store gross margin 17.5 % 16.9 % + 0.6 pp Supply chain gross margin 11.1 % 9.0 % + 2.1 pp Income from operations $210.4 $177.5 + 18.6 % Net income $125.8 $104.8 + 20.1 % Diluted earnings per share $3.58 $2.93 + 22.2 % Leverage ratio 5.0x 5.7x (0.7)x Net cash provided by operating activities $123.5 $114.7 + 7.7 % Capital expenditures (20.2) (19.0) + 6.0 % Free cash flow $103.3 $95.7 + 8.0 %   Revenues increased $60.2 million, or 5.9%, in the first quarter of 2024 as compared to the first quarter of 2023, primarily due to higher supply chain revenues and U.S. franchise royalties and fees, as well as higher U.S. Company-owned store revenues. The increase in supply chain revenues was attributable to higher order volumes, partially offset by a shift in the relative mix of the products sold by the Company and a decrease in the Company's food basket pricing to stores. The Company's food basket pricing to stores decreased 1.9% during the first quarter of 2024 as compared to the first quarter of 2023. U.S. franchise royalties and fees benefited from an increase in fees paid by U.S. franchisees for the use of the Company's technology platforms, in addition to higher same store sales and net store growth. U.S. Company-owned store revenues increased due to higher same store sales.  U.S. Company-owned store gross margin increased 0.6 percentage points in the first quarter of 2024 as compared to the first quarter of 2023. This increase was primarily driven by a decrease in the Company's food basket pricing to stores which drove lower food costs, as well as sales leverage which was primarily driven by higher customer transaction counts. These improvements were partially offset by increased labor costs as a result of higher wage rates.  Supply chain gross margin increased 2.1 percentage points in the first quarter of 2024 as compared to the first quarter of 2023, due to lower food costs resulting from procurement productivity and a decrease in the cost of the Company's food basket, as well as slightly lower delivery costs.  Income from operations increased $32.9 million, or 18.6%, in the first quarter of 2024 as compared to the first quarter of 2023. Excluding the negative impact of foreign currency exchange rates on international franchise royalty revenues of $1.4 million, income from operations increased $34.3 million, or 19.4%, in the first quarter of 2024 as compared to the first quarter of 2023. These increases were due primarily to higher U.S. franchise royalties and fees, as well as gross margin improvement within supply chain, each as discussed above.  Net income increased $21.1 million, or 20.1%, in the first quarter of 2024 as compared to the first quarter of 2023, due primarily to higher income from operations, as discussed above. Additionally, the Company's provision for income taxes decreased $4.8 million in the first quarter of 2024 due to a lower effective tax rate, partially offset by higher income before provision for income taxes. The effective tax rate decreased to 15.9% during the first quarter of 2024 as compared to 21.4% in the first quarter of 2023, driven by a 5.6 percentage point change in the impact of excess tax benefits from equity-based compensation, which is recorded as a reduction to the provision for income taxes. These increases in net income were partially offset by an $18.7 million pre-tax unrealized loss associated with the remeasurement of the Company's investment in DPC Dash Ltd which was recorded in other expense in the Company's condensed consolidated statements of income.  Diluted EPS was $3.58 in the first quarter of 2024 as compared to $2.93 in the first quarter of 2023, representing a $0.65, or 22.2%, increase. This increase was driven by higher net income, as well as a lower weighted average diluted share count, resulting from the Company's share repurchases during the trailing four quarters.  Net cash provided by operating activities was $123.5 million in 2024 as compared to $114.7 million in 2023. The Company spent $20.2 million on capital expenditures during 2024, as compared to $19.0 million during 2023, resulting in free cash flow of $103.3 million in 2024 as compared to $95.7 million in 2023. The increase in free cash flow was a result of higher net income, excluding non-cash operating activities, partially offset by the negative impact of changes in operating assets and liabilities, payments for advertising activities outpacing receipts from advertising contributions and higher investments in capital expenditures. Quarterly Dividend Subsequent to the end of the first quarter of 2024, on April 25, 2024, the Company's Board of Directors declared a $1.51 per share quarterly dividend on its outstanding common stock for shareholders of record as of June 14, 2024, to be paid on June 28, 2024. Share Repurchases During the first quarter of 2024, the Company repurchased and retired 56,372 shares of common stock for a total of $25.0 million. As of March 24, 2024, the Company had a total remaining authorized amount for share repurchases of $1.12 billion. Change in Advertising Fund Contributions and Technology Fees As previously announced, as of March 27, 2023, Domino's National Advertising Fund Inc., the Company's consolidated not-for-profit advertising subsidiary, effectuated a temporary reduction of 0.25% to its standard 6.0% advertising contribution rate, which expired at the beginning of the second quarter of 2024, on March 25, 2024. Additionally, as of March 25, 2024, the Company decreased the U.S. digital per-transaction technology fees that are recognized as the related U.S. franchise retail sales occur by $0.04 to $0.355. Long-Term Guidance (2024 – 2028) The Company continues to expect to achieve the following long-term guidance metrics previously announced. Annual global retail sales growth and annual income from operations growth exclude the impact of foreign currency. 7%+ Annual global retail sales growth;  1,100+ Annual global net store growth; and  8%+ Annual income from operations growth. Comments on Regulation G In addition to the GAAP financial measures set forth in this press release, the Company has included non-GAAP financial measures within the meaning of Regulation G, including free cash flow and income from operations, excluding foreign currency impact. The Company has also included metrics such as global retail sales, global retail sales growth (excluding foreign currency impact), same store sales growth, net store growth, food basket pricing change, impact of changes in foreign currency exchange rates on international franchise royalty revenues and the leverage ratio, which are ...