Domino's Pizza raises dividend and unveils additional share buyback plan

investing.com:

Investing.com — Domino’s Pizza (NYSE:DPZ) has hiked its dividend and gave the green light to further share repurchases, the restaurant chain announced on Monday.

The Michigan-based group said it had seen «positive» same store sales growth in the fourth quarter thanks in part to strength at its delivery business and company-owned U.S. locations. Order volumes expanded during the period, helping offset weaker advertising revenues and a drop in market basket pricing to stores.

Total revenues climbed by 0.8% versus the year-ago period to $1.40 billion, although this mark was just below consensus forecasts of $1.42 billion.

Over the entire fiscal year, the figure dipped by 1.3% to $4.48 billion. Like many other eateries, elevated costs for items like cheese and meat led Domino's to raise prices in 2023, threatening to weigh on demand from inflation-hit customers.

But Chief Executive Russell Weiner said in a statement that the company's fourth-quarter results «underscore the strength and momentum» in the business. «These results give us confidence in our brand and the Company’s ability to win and create meaningful value for our shareholders,” Weiner said.

Domino's reiterated its guidance for 7% annual global retail sales growth, representing a faster pace than the 5.4% registered in 2023. Income from operations is also seen increasing by 8% or more in 2024, up from 6.7% last year.

Meanwhile, a 25% uptick in its per-share quarterly dividend to $1.51 was approved, along with an additional share buyback program worth up to $1 billion.