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What: Shares of Domino’s Pizza (NYSE: DPZ ) rallied more than 10% after announcing strong second-quarter results and a plan to refinance $1.45 billion in debt.
So what: Revenue rose 6% to $384.9 million while profit rose 8% to $0.40 a share. Same-store sales increased 4.8% in the U.S. and 7.4% in other parts of the world. Analysts had been calling for $376.8 million and $0.36 a share, respectively.
Now what: Domino's made plenty of dough, taking in $789 million in cash from operations through the first six months of the year. Even so, CEO Patrick Doyle is tapping the capital markets to refinance securitized debt owed by Domino's subsidiaries. The offering is expected to close during Q3. Rates weren't disclosed, but with the Fed in inflation-fighting mode it's a good bet that Domino's is paying far less than the 50%-plus it tends to earn on its invested capital. Do you agree? Disagree? Let us know what you think about Domino’s business using the comments box below.
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