ANN ARBOR Mich. Domino's Pizza Inc. posted a 67.9-percent decline in first-quarter profit, versus a year ago, on increased costs related to the company's recent recapitalization and soft same-store sales in the United States, the company said Wednesday.
For the quarter ended March 25, net income dropped to $8.4 million, or 13 cents per share, from $26.2 million, or 39 cents per share, in the year-ago first quarter. Corporate revenues for the latest quarter declined 2.4 percent to $339.3 million.
The company said its earnings included charges totaling 25 cents per share from its recapitalization, which began in February and included a $1.85 billion securitized debt facility to fund a special dividend and share repurchases. Domino's interest expense more than doubled in the first quarter because of the transactions.
Domestic systemwide same-store sales fell 2.9 percent, the company reported, and international same-store sales increased 3.8 percent.
"We are competing in an environment where consumers are more demanding and more value conscious," chairman and chief executive, David A. Brandon, said in a statement. "Traditional media channels are not as effective as they have been in the past. We are addressing these environmental issues aggressively."
Domino's, which operates or franchises a system of 8,394 restaurants, said it expects to return to positive same-store sales results "very soon."
