Cover Page
Cover Page - shares | 8 Months Ended | |
Sep. 08, 2019 | Oct. 01, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2019 | |
Document Period End Date | Sep. 8, 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001286681 | |
Entity Registrant Name | DOMINOS PIZZA INC | |
Current Fiscal Year End Date | --12-29 | |
Entity File Number | 001-32242 | |
Entity Tax Identification Number | 38-2511577 | |
Entity Incorporation, State or Country Code | DE | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 30 Frank Lloyd Wright Drive | |
Entity Address, City or Town | Ann Arbor | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48105 | |
City Area Code | 734 | |
Local Phone Number | 930-3030 | |
Trading Symbol | DPZ | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
Entity Common Stock, Shares Outstanding | 40,900,458 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 08, 2019 | Dec. 30, 2018 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 66,706 | $ 25,438 | |
Restricted cash and cash equivalents | 177,292 | 166,993 | |
Accounts receivable, net | 185,403 | 190,091 | |
Inventories | 51,010 | 45,975 | |
Prepaid expenses and other | 15,438 | 25,710 | |
Advertising fund assets, restricted | 109,490 | 112,744 | |
Total current assets | 605,339 | 566,951 | |
Property, plant and equipment: | |||
Land and buildings | 41,408 | 41,147 | |
Leasehold and other improvements | 160,850 | 170,498 | |
Equipment | 241,972 | 243,654 | |
Construction in progress | 26,649 | 31,822 | |
Property, plant and equipment, Gross | 470,879 | 487,121 | |
Accumulated depreciation and amortization | (254,669) | (252,182) | |
Property, plant and equipment, net | 216,210 | 234,939 | |
Other assets: | |||
Operating lease right-of-use assets | 227,495 | ||
Goodwill | 13,542 | 14,919 | |
Capitalized software, net | 71,055 | 63,809 | |
Other assets | 22,743 | 21,241 | |
Deferred income taxes | 3,888 | 5,526 | |
Total other assets | 338,723 | 105,495 | |
Total assets | 1,160,272 | 907,385 | |
Current liabilities: | |||
Current portion of long-term debt | 35,935 | 35,893 | |
Accounts payable | 95,657 | 92,546 | |
Operating lease liabilities | 32,203 | ||
Insurance reserves | 22,337 | 22,210 | |
Dividends payable | 27,006 | 581 | |
Advertising fund liabilities | 104,945 | 107,150 | |
Other accrued liabilities | 103,162 | 121,363 | |
Total current liabilities | 421,245 | 379,743 | |
Long-term liabilities: | |||
Long-term debt, less current portion | 3,407,101 | 3,495,691 | |
Operating lease liabilities | 202,128 | ||
Insurance reserves | 32,858 | 31,065 | |
Other accrued liabilities | 32,589 | 40,807 | |
Total long-term liabilities | 3,674,676 | 3,567,563 | |
Stockholders' deficit: | |||
Common stock | 409 | 410 | |
Additional paid-in capital | 75 | 569 | |
Retained deficit | (2,932,195) | (3,036,471) | |
Accumulated other comprehensive loss | (3,938) | (4,429) | |
Total stockholders' deficit | (2,935,649) | (3,039,921) | |
Total liabilities and stockholders' deficit | $ 1,160,272 | $ 907,385 | |
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | |
Revenues: | ||||
Revenue | $ 820,812 | $ 785,965 | $ 2,468,422 | $ 2,350,732 |
Cost of sales: | ||||
Cost of sales | 504,561 | 490,686 | 1,513,211 | 1,462,008 |
Operating margin | 316,251 | 295,279 | 955,211 | 888,724 |
General and administrative | 83,728 | 80,369 | 262,640 | 251,053 |
U.S. franchise advertising | 89,494 | 82,478 | 267,115 | 245,618 |
Income from operations | 143,029 | 132,432 | 425,456 | 392,053 |
Interest income | 968 | 792 | 2,583 | 2,451 |
Interest expense | (33,752) | (33,976) | (102,672) | (100,389) |
Income before provision for income taxes | 110,245 | 99,248 | 325,367 | 294,115 |
Provision for income taxes | 23,872 | 15,153 | 53,985 | 43,785 |
Net income | $ 86,373 | $ 84,095 | $ 271,382 | $ 250,330 |
Earnings per share: | ||||
Common stock - basic | $ 2.11 | $ 2.02 | $ 6.63 | $ 5.94 |
Common stock - diluted | $ 2.05 | $ 1.95 | $ 6.44 | $ 5.73 |
U.S. Stores [Member] | U.S. Company-owned stores [Member] | ||||
Revenues: | ||||
Revenue | $ 94,575 | $ 118,540 | $ 323,026 | $ 358,521 |
Cost of sales: | ||||
Cost of sales | 71,610 | 92,998 | 247,516 | 278,012 |
U.S. Stores [Member] | U.S. franchise royalties and fees [Member] | ||||
Revenues: | ||||
Revenue | 97,047 | 89,427 | 289,349 | 266,335 |
U.S. Stores [Member] | U.S. franchise advertising [Member] | ||||
Revenues: | ||||
Revenue | 89,494 | 82,478 | 267,115 | 245,618 |
Supply Chain [Member] | ||||
Revenues: | ||||
Revenue | 485,110 | 445,096 | 1,424,787 | 1,326,076 |
Cost of sales: | ||||
Cost of sales | 432,951 | 397,688 | 1,265,695 | 1,183,996 |
International Franchise [Member] | International franchise royalties and fees [Member] | ||||
Revenues: | ||||
Revenue | $ 54,586 | $ 50,424 | $ 164,145 | $ 154,182 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 86,373 | $ 84,095 | $ 271,382 | $ 250,330 |
Currency translation adjustment | 270 | (84) | 491 | (1,142) |
Comprehensive income | $ 86,643 | $ 84,011 | $ 271,873 | $ 249,188 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | ||
Cash flows from operating activities: | |||||
Net income | $ 86,373 | $ 84,095 | $ 271,382 | $ 250,330 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 13,132 | 12,460 | 40,982 | 35,770 | |
Loss (gain) on sale/disposal of assets | 312 | (5,706) | 3,141 | (5,187) | |
Amortization of debt issuance costs | 3,288 | 6,581 | |||
Provision for deferred income taxes | 1,627 | 1,737 | |||
Non-cash compensation expense | 4,680 | 4,217 | 13,269 | 15,660 | |
Excess tax benefits from equity-based compensation | (19,670) | (22,722) | |||
Other | 774 | 356 | |||
Changes in operating assets and liabilities | 16,214 | (25,580) | |||
Changes in advertising fund assets and liabilities, restricted | (6,411) | 5,574 | |||
Net cash provided by operating activities | 324,596 | 262,519 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (42,676) | (65,074) | |||
Proceeds from sale of assets | 9,738 | 8,213 | |||
Maturities of advertising fund investments, restricted | 30,152 | 44,007 | |||
Purchases of advertising fund investments, restricted | (50,152) | ||||
Other | (351) | (2,357) | |||
Net cash used in investing activities | (3,137) | (65,363) | |||
Cash flows from financing activities: | |||||
Proceeds from issuance of long-term debt | 905,000 | ||||
Repayments of long-term debt and finance lease obligations | (91,860) | (595,067) | |||
Proceeds from exercise of stock options | 10,122 | 8,967 | |||
Purchases of common stock | (105,149) | (429,190) | |||
Tax payments for restricted stock upon vesting | (5,820) | (6,849) | |||
Payments of common stock dividends and equivalents | (53,598) | (46,720) | |||
Cash paid for financing costs | (8,207) | ||||
Net cash used in financing activities | (246,305) | (172,066) | |||
Effect of exchange rate changes on cash | 139 | (235) | |||
Change in cash and cash equivalents, restricted cash and cash equivalents | 75,293 | 24,855 | |||
Cash and cash equivalents, beginning of period | 25,438 | [1] | 35,768 | ||
Restricted cash and cash equivalents, beginning of period | 166,993 | [1] | 191,762 | ||
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 44,988 | 27,316 | |||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 237,419 | 254,846 | |||
Cash and cash equivalents, end of period | 66,706 | 84,600 | 66,706 | 84,600 | |
Restricted cash and cash equivalents, end of period | 177,292 | 168,170 | 177,292 | 168,170 | |
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 68,714 | 26,931 | 68,714 | 26,931 | |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ 312,712 | $ 279,701 | $ 312,712 | $ 279,701 | |
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Basis of Presentation and Updat
Basis of Presentation and Updates to Significant Accounting Policies | 8 Months Ended |
Sep. 08, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Updates to Significant Accounting Policies | 1. Basis of Presentation and Updates to Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q 10-01 S-X. 10-K, 10-K”). In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair statement have been included. Operating results for the fiscal quarter ended September 8, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2019. Updates to Significant Accounting Policies The Company adopted Accounting Standards Codification 842, Leases Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters. The Company determines whether an arrangement is or contains a lease at contract inception. The majority of the Company’s leases are classified as operating leases, which are included in operating lease right-of-use Right-of-use The Company estimates its incremental borrowing rate for each lease using a portfolio approach based on the respective weighted average term of the agreements. This estimation considers the market rates of the Company’s outstanding collateralized borrowings and interpolations of rates outside of the terms of the outstanding borrowings, including comparisons to comparable borrowings of similarly-rated companies with longer term borrowings. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Amortization expense for finance leases is recognized on a straight-line basis over the lease term and is included in cost of sales, while interest expense for finance leases is recognized using the effective interest method. Variable lease payments that do not depend on a rate or index, payments associated with non-lease |
Segment Information
Segment Information | 8 Months Ended |
Sep. 08, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The following table summarizes revenues, income from operations and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Fiscal Quarters Ended September 8, 2019 and September 9, 2018 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2019 $ 281,116 $ 511,709 $ 54,586 $ (26,599 ) $ — $ 820,812 2018 290,445 478,517 50,424 (33,421 ) — 785,965 Income from operations 2019 $ 80,188 $ 40,513 $ 42,281 N/A $ (19,953 ) $ 143,029 2018 78,636 35,452 39,374 N/A (21,030 ) 132,432 Segment Income 2019 $ 82,556 $ 44,432 $ 42,337 N/A $ (8,172 ) $ 161,153 2018 75,721 38,561 39,416 N/A (10,295 ) 143,403 Three Fiscal Quarters Ended September 8, 2019 and September 9, 2018 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2019 $ 879,490 $ 1,513,380 $ 164,145 $ (88,593 ) $ — $ 2,468,422 2018 870,474 1,426,943 154,182 (100,867 ) — 2,350,732 Income from operations 2019 $ 237,852 $ 123,840 $ 126,467 N/A $ (62,703 ) $ 425,456 2018 227,117 109,319 120,002 N/A (64,385 ) 392,053 Segment Income 2019 $ 248,160 $ 135,861 $ 126,628 N/A $ (27,801 ) $ 482,848 2018 230,152 118,171 120,138 N/A (29,633 ) 438,828 The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 8, September 9, September 8, September 9, 2019 2018 2019 2018 Total Segment Income $ 161,153 $ 143,403 $ 482,848 $ 438,828 Depreciation and amortization (13,132 ) (12,460 ) (40,982 ) (35,770 ) (Loss) gain on sale/disposal of assets (312 ) 5,706 (3,141 ) 5,187 Non-cash (4,680 ) (4,217 ) (13,269 ) (15,660 ) Recapitalization-related expenses — — — (532 ) Income from operations 143,029 132,432 425,456 392,053 Interest income 968 792 2,583 2,451 Interest expense (33,752 ) (33,976 ) (102,672 ) (100,389 ) Income before provision for income taxes $ 110,245 $ 99,248 $ 325,367 $ 294,115 |
Earnings Per Share
Earnings Per Share | 8 Months Ended |
Sep. 08, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Fiscal Quarter Ended Three Fiscal Quarters Ended September 8, September 9, September 8, September 9, 2019 2018 2019 2018 Net income available to common stockholders - basic and diluted $ 86,373 $ 84,095 $ 271,382 $ 250,330 Basic weighted average number of shares 40,954,279 41,585,933 40,947,693 42,150,693 Earnings per share – basic $ 2.11 $ 2.02 $ 6.63 $ 5.94 Diluted weighted average number of shares 42,040,291 43,067,191 42,158,447 43,675,627 Earnings per share – diluted $ 2.05 $ 1.95 $ 6.44 $ 5.73 The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2019 do not include 161,670 options to purchase common stock, as the effect of including these options would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2019 each do not include 142,477 restricted performance shares, as the performance targets for these awards had not yet been met. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2018 do not include 76,130 and 137,156 options to purchase common stock, respectively, as the effect of including these options would have been anti-dilutive. The denominator used in calculating diluted earnings per share for the three fiscal quarters of 2018 does not include 28,570 shares subject to restricted stock awards, as the effect of including these shares would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter and three fiscal quarters of 2018 each do not include 160,998 restricted performance shares, as the performance targets for these awards had not yet been met. |
Changes in Stockholders' Defici
Changes in Stockholders' Deficit | 8 Months Ended |
Sep. 08, 2019 | |
Federal Home Loan Banks [Abstract] | |
Changes in Stockholders' Deficit | 4. Changes in Stockholders’ Deficit The following table summarizes changes in stockholders’ deficit for the third quarter of 2019. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 16, 2019 41,232,358 $ 412 $ 10,788 $ (2,911,278 ) $ (4,208 ) Net income — — — 86,373 — Dividends declared on common stock and equivalents ($0.65 per share) — — — (26,569 ) — Issuance and cancellation of stock awards, net 45,479 — — — — Tax payments for restricted stock upon vesting (12,603 ) — (3,253 ) — — Purchases of common stock (384,338 ) (3 ) (12,972 ) (80,721 ) — Exercise of stock options 18,100 — 832 — — Non-cash — — 4,680 — — Currency translation adjustment — — — — 270 Balance at September 8, 2019 40,898,996 $ 409 $ 75 $ (2,932,195 ) $ (3,938 ) The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2019. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 30, 2018 40,977,561 $ 410 $ 569 $ (3,036,471 ) $ (4,429 ) Net income — — — 271,382 — Dividends declared on common stock and equivalents ($1.95 per share) — — — (80,023 ) — Issuance and cancellation of stock awards, net 50,640 — — — — Tax payments for restricted stock upon vesting (22,044 ) — (5,820 ) — — Purchases of common stock (430,182 ) (4 ) (18,062 ) (87,083 ) — Exercise of stock options 323,021 3 10,119 — — Non-cash — — 13,269 — — Currency translation adjustment — — — — 491 Balance at September 8, 2019 40,898,996 $ 409 $ 75 $ (2,932,195 ) $ (3,938 ) Subsequent to the third quarter, on October 4, 2019 December 13, 2019 December 27, 2019 . This repurchase program replaces the remaining availability of approximately $53.6 million under the Company’s $750.0 million share repurchase program The following table summarizes changes in stockholders’ deficit for the third quarter of 2018. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 17, 2018 41,837,693 $ 418 $ 737 $ (2,926,921 ) $ (3,439 ) Net income — — — 84,095 — Dividends declared on common stock and equivalents ($0.55 per share) — — — (22,889 ) — Issuance and cancellation of stock awards, net 72,990 1 — — — Tax payments for restricted stock upon vesting (16,580 ) — (4,531 ) — — Purchases of common stock (397,490 ) (4 ) (2,269 ) (106,850 ) — Exercise of stock options 99,549 1 3,760 — — Non-cash — — 4,217 — — Currency translation adjustment — — — — (84 ) Balance at September 9, 2018 41,596,162 $ 416 $ 1,914 $ (2,972,565 ) $ (3,523 ) The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2018. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 31, 2017 42,898,329 $ 429 $ 5,654 $ (2,739,437 ) $ (2,030 ) Net income — — — 250,330 — Dividends declared on common stock and equivalents ($1.65 per share) — — — (69,450 ) — Issuance and cancellation of stock awards, net 80,932 1 — — — Tax payments for restricted stock upon vesting (26,893 ) — (6,849 ) — — Purchases of common stock (1,751,054 ) (18 ) (21,514 ) (407,658 ) — Exercise of stock options 394,848 4 8,963 — — Non-cash — — 15,660 — — Adoption of revenue recognition accounting standard — — — (6,701 ) — Currency translation adjustment — — — — (1,142 ) Reclassification adjustment for stranded taxes — — — 351 (351 ) Balance at September 9, 2018 41,596,162 $ 416 $ 1,914 $ (2,972,565 ) $ (3,523 ) |
Fair Value Measurements
Fair Value Measurements | 8 Months Ended |
Sep. 08, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value measurements enable the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The fair values of the Company’s cash equivalents and investments in marketable securities are based on quoted prices in active markets for identical assets. The following tables summarize the carrying amounts and fair values of certain assets at September 8, 2019 and December 30, 2018: At September 8, 2019 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 58,993 $ 58,993 $ — $ — Restricted cash equivalents 104,424 104,424 — — Investments in marketable securities 10,851 10,851 — — Advertising fund cash equivalents, restricted 57,682 57,682 — — Advertising fund investments, restricted 20,000 20,000 — — At December 30, 2018 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 11,877 $ 11,877 $ — $ — Restricted cash equivalents 112,272 112,272 — — Investments in marketable securities 8,718 8,718 — — Advertising fund cash equivalents, restricted 31,547 31,547 — — Advertising fund investments, restricted 50,152 50,152 — — Management estimated the approximate fair values of the 2015 fixed rate notes, the 2017 fixed and floating rate notes and the 2018 fixed rate notes as follows: September 8, 2019 December 30, 2018 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year $ 774,000 $ 817,344 $ 780,000 $ 783,120 2017 Five-Year Fixed Rate Notes 588,000 590,352 592,500 575,910 2017 Ten-Year 980,000 1,038,800 987,500 956,888 2017 Five-Year Floating Rate Notes 294,000 293,706 296,250 295,065 2018 7.5-Year 419,688 438,573 422,875 416,955 2018 9.25-Year 395,000 421,465 398,000 396,010 At September 8, 2019, the Company did not have any outstanding borrowings under its variable funding notes. The Company had $65.0 million outstanding under its variable funding notes at December 30, 2018. Borrowings under the variable funding notes are a variable rate loan. The fair value of this loan approximated book value based on the borrowing rates currently available for variable rate loans obtained from third party lending institutions. This fair value represents a Level 2 measurement. The fixed and floating rate notes are classified as Level 2 measurements, as the Company estimates the fair value amount by using available market information. The Company obtained quotes from two separate brokerage firms that are knowledgeable about the Company’s fixed and floating rate notes and, at times, trade these notes. The Company also performed its own internal analysis based on the information gathered from public markets, including information on notes that are similar to those of the Company. However, considerable judgment is required to interpret market data to estimate fair value. Accordingly, the fair value estimates presented are not necessarily indicative of the amount that the Company or the debtholders could realize in a current market exchange. The use of different assumptions and/or estimation methodologies may have a material effect on the estimated fair values stated above. |
Revenue Disclosures
Revenue Disclosures | 8 Months Ended |
Sep. 08, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disclosures | 6. Revenue Disclosures Contract Liabilities Contract liabilities consist of deferred franchise fees and deferred development fees. Changes in contract liabilities were as follows: Three Fiscal Quarters Ended September 8, September 9, 2019 2018 Contract liabilities at beginning of period $ 19,900 $ 19,404 Revenue recognized during the period (3,923 ) (3,540 ) New deferrals due to cash received and other 4,613 3,917 Contract liabilities at end of period $ 20,590 $ 19,781 Advertising Fund Assets As of September 8, 2019, advertising fund assets, restricted of $109.5 million consisted of $88.7 million of cash, cash equivalents and investments, $18.3 million of accounts receivable and $2.5 million of prepaid expenses. As of September 8, 2019, advertising fund cash, cash equivalents and investments included $4.6 million of cash contributed from Company-owned stores that had not yet been expended. As of December 30, 2018, advertising fund assets, restricted of $112.7 million consisted of $95.1 million of cash, cash equivalents and investments, $15.3 million of accounts receivable and $2.3 million of prepaid expenses. As of December 30, 2018, advertising fund cash, cash equivalents and investments included $5.5 million of cash contributed from Company-owned stores that had not yet been expended. |
Lease Disclosures
Lease Disclosures | 8 Months Ended |
Sep. 08, 2019 | |
Leases [Abstract] | |
Lease Disclosures | 7. Lease Disclosures The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters with expiration dates through 2037. The components of operating and finance lease cost for the third quarter and three fiscal quarters of 2019 were as follows: Fiscal Three Fiscal September 8, September 8, 2019 2019 Operating lease cost $ 9,150 $ 29,464 Finance lease cost: Amortization of right-of-use 254 763 Interest on lease liabilities 473 1,269 Total finance lease cost $ 727 $ 2,032 Rent expense totaled $16.1 million and $48.4 million in the third quarter and three fiscal quarters of 2019, respectively, and totaled $15.7 million and $46.3 million in the third quarter and three fiscal quarters of 2018, respectively. Rent expense includes operating lease cost, as well as expense for non-lease Supplemental balance sheet information related to the Company’s leases as of September 8, 2019 and December 30, 2018 was as follows: September 8, December 30, 2019 2018 Land and buildings $ 22,195 $ 22,171 Accumulated depreciation and amortization (7,441 ) (6,678 ) Finance lease assets, net $ 14,754 $ 15,493 Current portion of long-term debt $ 685 $ 643 Long-term debt, less current portion 15,922 16,363 Total principal payable on finance leases $ 16,607 $ 17,006 As of September 8, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: Operating Finance Leases Leases Weighted average remaining lease term 8 years 14 years Weighted average discount rate 3.8 % 11.4 % Supplemental cash flow information related to leases for the third quarter and three fiscal quarters of 2019 was as follows: Fiscal Quarter Three Fiscal Quarters September 8, September 8, 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,968 $ 30,056 Operating cash flows from finance leases 473 1,269 Financing cash flows from finance leases 161 422 Right-of-use Operating leases 23,434 49,802 Finance leases — — During the first quarter of 2018, the Company renewed the lease of a supply chain center building and extended the term of the lease through 2033. During the third quarter of 2018, the Company renewed the leases of two 2036 2037 non-cash Maturities of lease liabilities as of September 8, 2019 were as follows: Operating Finance Leases Leases 2019 $ 12,212 $ 791 2020 40,157 2,417 2021 37,979 2,435 2022 34,819 2,453 2023 32,245 2,477 Thereafter 116,664 23,810 Total future minimum rental commitments 274,076 34,383 Less – amounts representing interest (39,745 ) (17,776 ) Total lease liabilities $ 234,331 $ 16,607 Maturities of lease liabilities as of December 30, 2018 were as follows: Operating Finance Leases Leases 2019 $ 40,752 $ 2,396 2020 37,519 2,415 2021 34,538 2,433 2022 30,763 2,451 2023 27,388 2,474 Thereafter 100,310 23,781 Total future minimum rental commitments $ 271,270 35,950 Less – amounts representing interest (18,944 ) Total principal payable on finance leases $ 17,006 As of September 8, 2019, the Company has additional leases for two supply chain centers and certain supply chain tractors and trailers that had not yet commenced with estimated future minimum rental commitments of approximately $50.6 million. These leases are expected to commence in 2019 with lease terms of up to 15 years. These undiscounted amounts are not included in the tables above. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees is $17.9 million and $2.4 million as of September 8, 2019 and December 30, 2018, respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues or expenses, capital expenditures or liquidity. |
Legal Matters
Legal Matters | 8 Months Ended |
Sep. 08, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | 8. Legal Matters On February 14, 2011, Domino’s Pizza LLC was named as a defendant in a lawsuit along with Fischler Enterprises of C.F., Inc., a franchisee, and Jeffrey S. Kidd, the franchisee’s delivery driver, filed by Yvonne Wiederhold, the plaintiff, as Personal Representative of the Estate of Richard E. Wiederhold, deceased. The case involved a traffic accident in which the franchisee’s delivery driver is alleged to have caused an accident involving a vehicle driven by Richard Wiederhold. Mr. Wiederhold sustained spinal injuries resulting in quadriplegia and passed away several months after the accident. The case went to trial in 2016 and the Company was found liable, but the verdict was reversed by the Florida Fifth District Court of Appeals in May 2018 and was remanded to the Ninth Judicial Circuit Court of Florida for a new trial. The case was tried again in June 2019 and the jury returned a $9.0 million judgment for the plaintiff where the Company and Mr. Kidd were found to be 100% liable (after certain offsets and other deductions the final verdict was $8.0 million). The Company continues to deny liability and has filed . |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 8 Months Ended |
Sep. 08, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 9. Supplemental Disclosures of Cash Flow Information The Company had non-cash |
Sale of Company-Owned Stores
Sale of Company-Owned Stores | 8 Months Ended |
Sep. 08, 2019 | |
Restructuring and Related Activities [Abstract] | |
Sale of Company-Owned Stores | 10. Sale of Company-owned Stores During the second quarter of 2019, the Company sold 59 U.S. Company-owned stores to certain of its existing U.S. franchisees for proceeds of $9.7 million, of which $8.1 million was received in cash during the second quarter. The remaining $1.6 million was collected during the third quarter. In connection with the sale of the stores, the Company recorded a $2.4 million pre-tax |
New Accounting Pronouncements
New Accounting Pronouncements | 8 Months Ended |
Sep. 08, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 11. New Accounting Pronouncements Recently Adopted Accounting Standard Accounting Standards Update 2016-02, In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) The adoption of ASC 842 had a material impact on the Company’s assets and liabilities due to the recognition of operating lease right-of-use The effects of the changes made to the Company’s condensed consolidated balance sheet as of December 31, 2018 for the adoption of ASC 842 were as follows: Balance at Adjustments Due to ASC 842 Balance at Assets Current assets: Prepaid expenses and other $ 25,710 $ (35 ) $ 25,675 Property, plant and equipment: Construction in progress 31,822 (1,904 ) 29,918 Other assets: Operating lease right-of-use — 218,860 218,860 Liabilities and stockholders’ deficit Current liabilities: Operating lease liabilities — 32,033 32,033 Other accrued liabilities 55,001 (136 ) 54,865 Long-term liabilities: Operating lease liabilities — 194,736 194,736 Other accrued liabilities 40,807 (9,712 ) 31,095 On December 31, 2018, the Company recorded an adjustment of $226.8 million for operating lease right-of-use right-of-use build-to-suit ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Accounting Standards Not Yet Adopted The Company has considered all new accounting standards issued by the FASB. The Company has not yet completed its assessment of the following standards. ASU 2016-13, In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”). 2016-13 2016-13 |
Basis of Presentation and Upd_2
Basis of Presentation and Updates to Significant Accounting Policies (Policies) | 8 Months Ended |
Sep. 08, 2019 | |
Accounting Policies [Abstract] | |
Leases | Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters. The Company determines whether an arrangement is or contains a lease at contract inception. The majority of the Company’s leases are classified as operating leases, which are included in operating lease right-of-use Right-of-use The Company estimates its incremental borrowing rate for each lease using a portfolio approach based on the respective weighted average term of the agreements. This estimation considers the market rates of the Company’s outstanding collateralized borrowings and interpolations of rates outside of the terms of the outstanding borrowings, including comparisons to comparable borrowings of similarly-rated companies with longer term borrowings. Operating lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales or general and administrative expense. Amortization expense for finance leases is recognized on a straight-line basis over the lease term and is included in cost of sales, while interest expense for finance leases is recognized using the effective interest method. Variable lease payments that do not depend on a rate or index, payments associated with non-lease |
Segment Information (Tables)
Segment Information (Tables) | 8 Months Ended |
Sep. 08, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | The following table summarizes revenues, income from operations and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Fiscal Quarters Ended September 8, 2019 and September 9, 2018 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2019 $ 281,116 $ 511,709 $ 54,586 $ (26,599 ) $ — $ 820,812 2018 290,445 478,517 50,424 (33,421 ) — 785,965 Income from operations 2019 $ 80,188 $ 40,513 $ 42,281 N/A $ (19,953 ) $ 143,029 2018 78,636 35,452 39,374 N/A (21,030 ) 132,432 Segment Income 2019 $ 82,556 $ 44,432 $ 42,337 N/A $ (8,172 ) $ 161,153 2018 75,721 38,561 39,416 N/A (10,295 ) 143,403 Three Fiscal Quarters Ended September 8, 2019 and September 9, 2018 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2019 $ 879,490 $ 1,513,380 $ 164,145 $ (88,593 ) $ — $ 2,468,422 2018 870,474 1,426,943 154,182 (100,867 ) — 2,350,732 Income from operations 2019 $ 237,852 $ 123,840 $ 126,467 N/A $ (62,703 ) $ 425,456 2018 227,117 109,319 120,002 N/A (64,385 ) 392,053 Segment Income 2019 $ 248,160 $ 135,861 $ 126,628 N/A $ (27,801 ) $ 482,848 2018 230,152 118,171 120,138 N/A (29,633 ) 438,828 |
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes | The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 8, September 9, September 8, September 9, 2019 2018 2019 2018 Total Segment Income $ 161,153 $ 143,403 $ 482,848 $ 438,828 Depreciation and amortization (13,132 ) (12,460 ) (40,982 ) (35,770 ) (Loss) gain on sale/disposal of assets (312 ) 5,706 (3,141 ) 5,187 Non-cash (4,680 ) (4,217 ) (13,269 ) (15,660 ) Recapitalization-related expenses — — — (532 ) Income from operations 143,029 132,432 425,456 392,053 Interest income 968 792 2,583 2,451 Interest expense (33,752 ) (33,976 ) (102,672 ) (100,389 ) Income before provision for income taxes $ 110,245 $ 99,248 $ 325,367 $ 294,115 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 8 Months Ended |
Sep. 08, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Fiscal Quarter Ended Three Fiscal Quarters Ended September 8, September 9, September 8, September 9, 2019 2018 2019 2018 Net income available to common stockholders - basic and diluted $ 86,373 $ 84,095 $ 271,382 $ 250,330 Basic weighted average number of shares 40,954,279 41,585,933 40,947,693 42,150,693 Earnings per share – basic $ 2.11 $ 2.02 $ 6.63 $ 5.94 Diluted weighted average number of shares 42,040,291 43,067,191 42,158,447 43,675,627 Earnings per share – diluted $ 2.05 $ 1.95 $ 6.44 $ 5.73 |
Changes in Stockholders' Defi_2
Changes in Stockholders' Deficit (Tables) | 8 Months Ended |
Sep. 08, 2019 | |
Federal Home Loan Banks [Abstract] | |
Changes in Stockholders' Deficit | The following table summarizes changes in stockholders’ deficit for the third quarter of 2019. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 16, 2019 41,232,358 $ 412 $ 10,788 $ (2,911,278 ) $ (4,208 ) Net income — — — 86,373 — Dividends declared on common stock and equivalents ($0.65 per share) — — — (26,569 ) — Issuance and cancellation of stock awards, net 45,479 — — — — Tax payments for restricted stock upon vesting (12,603 ) — (3,253 ) — — Purchases of common stock (384,338 ) (3 ) (12,972 ) (80,721 ) — Exercise of stock options 18,100 — 832 — — Non-cash — — 4,680 — — Currency translation adjustment — — — — 270 Balance at September 8, 2019 40,898,996 $ 409 $ 75 $ (2,932,195 ) $ (3,938 ) The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2019. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 30, 2018 40,977,561 $ 410 $ 569 $ (3,036,471 ) $ (4,429 ) Net income — — — 271,382 — Dividends declared on common stock and equivalents ($1.95 per share) — — — (80,023 ) — Issuance and cancellation of stock awards, net 50,640 — — — — Tax payments for restricted stock upon vesting (22,044 ) — (5,820 ) — — Purchases of common stock (430,182 ) (4 ) (18,062 ) (87,083 ) — Exercise of stock options 323,021 3 10,119 — — Non-cash — — 13,269 — — Currency translation adjustment — — — — 491 Balance at September 8, 2019 40,898,996 $ 409 $ 75 $ (2,932,195 ) $ (3,938 ) Subsequent to the third quarter, on October 4, 2019 December 13, 2019 December 27, 2019 . This repurchase program replaces the remaining availability of approximately $53.6 million under the Company’s $750.0 million share repurchase program The following table summarizes changes in stockholders’ deficit for the third quarter of 2018. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 17, 2018 41,837,693 $ 418 $ 737 $ (2,926,921 ) $ (3,439 ) Net income — — — 84,095 — Dividends declared on common stock and equivalents ($0.55 per share) — — — (22,889 ) — Issuance and cancellation of stock awards, net 72,990 1 — — — Tax payments for restricted stock upon vesting (16,580 ) — (4,531 ) — — Purchases of common stock (397,490 ) (4 ) (2,269 ) (106,850 ) — Exercise of stock options 99,549 1 3,760 — — Non-cash — — 4,217 — — Currency translation adjustment — — — — (84 ) Balance at September 9, 2018 41,596,162 $ 416 $ 1,914 $ (2,972,565 ) $ (3,523 ) The following table summarizes changes in stockholders’ deficit for the three fiscal quarters of 2018. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 31, 2017 42,898,329 $ 429 $ 5,654 $ (2,739,437 ) $ (2,030 ) Net income — — — 250,330 — Dividends declared on common stock and equivalents ($1.65 per share) — — — (69,450 ) — Issuance and cancellation of stock awards, net 80,932 1 — — — Tax payments for restricted stock upon vesting (26,893 ) — (6,849 ) — — Purchases of common stock (1,751,054 ) (18 ) (21,514 ) (407,658 ) — Exercise of stock options 394,848 4 8,963 — — Non-cash — — 15,660 — — Adoption of revenue recognition accounting standard — — — (6,701 ) — Currency translation adjustment — — — — (1,142 ) Reclassification adjustment for stranded taxes — — — 351 (351 ) Balance at September 9, 2018 41,596,162 $ 416 $ 1,914 $ (2,972,565 ) $ (3,523 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 8 Months Ended |
Sep. 08, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | The fair values of the Company’s cash equivalents and investments in marketable securities are based on quoted prices in active markets for identical assets. The following tables summarize the carrying amounts and fair values of certain assets at September 8, 2019 and December 30, 2018: At September 8, 2019 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 58,993 $ 58,993 $ — $ — Restricted cash equivalents 104,424 104,424 — — Investments in marketable securities 10,851 10,851 — — Advertising fund cash equivalents, restricted 57,682 57,682 — — Advertising fund investments, restricted 20,000 20,000 — — At December 30, 2018 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 11,877 $ 11,877 $ — $ — Restricted cash equivalents 112,272 112,272 — — Investments in marketable securities 8,718 8,718 — — Advertising fund cash equivalents, restricted 31,547 31,547 — — Advertising fund investments, restricted 50,152 50,152 — — |
Schedule of Estimated Fair Value | Management estimated the approximate fair values of the 2015 fixed rate notes, the 2017 fixed and floating rate notes and the 2018 fixed rate notes as follows: September 8, 2019 December 30, 2018 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year $ 774,000 $ 817,344 $ 780,000 $ 783,120 2017 Five-Year Fixed Rate Notes 588,000 590,352 592,500 575,910 2017 Ten-Year 980,000 1,038,800 987,500 956,888 2017 Five-Year Floating Rate Notes 294,000 293,706 296,250 295,065 2018 7.5-Year 419,688 438,573 422,875 416,955 2018 9.25-Year 395,000 421,465 398,000 396,010 |
Revenue Disclosures (Tables)
Revenue Disclosures (Tables) | 8 Months Ended |
Sep. 08, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees | Contract liabilities consist of deferred franchise fees and deferred development fees. Changes in contract liabilities were as follows: Three Fiscal Quarters Ended September 8, September 9, 2019 2018 Contract liabilities at beginning of period $ 19,900 $ 19,404 Revenue recognized during the period (3,923 ) (3,540 ) New deferrals due to cash received and other 4,613 3,917 Contract liabilities at end of period $ 20,590 $ 19,781 |
Lease Disclosures (Tables)
Lease Disclosures (Tables) | 8 Months Ended |
Sep. 08, 2019 | |
Leases [Abstract] | |
Components Of Operating And Finance Lease Cost | The components of operating and finance lease cost for the third quarter and three fiscal quarters of 2019 were as follows: Fiscal Three Fiscal September 8, September 8, 2019 2019 Operating lease cost $ 9,150 $ 29,464 Finance lease cost: Amortization of right-of-use 254 763 Interest on lease liabilities 473 1,269 Total finance lease cost $ 727 $ 2,032 |
Schedule of Supplemental Balance Sheet Information Related To Finance Leases | Supplemental balance sheet information related to the Company’s leases as of September 8, 2019 and December 30, 2018 was as follows: September 8, December 30, 2019 2018 Land and buildings $ 22,195 $ 22,171 Accumulated depreciation and amortization (7,441 ) (6,678 ) Finance lease assets, net $ 14,754 $ 15,493 Current portion of long-term debt $ 685 $ 643 Long-term debt, less current portion 15,922 16,363 Total principal payable on finance leases $ 16,607 $ 17,006 Operating Finance Leases Leases Weighted average remaining lease term 8 years 14 years Weighted average discount rate 3.8 % 11.4 % |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the third quarter and three fiscal quarters of 2019 was as follows: Fiscal Quarter Three Fiscal Quarters September 8, September 8, 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,968 $ 30,056 Operating cash flows from finance leases 473 1,269 Financing cash flows from finance leases 161 422 Right-of-use Operating leases 23,434 49,802 Finance leases — — |
Schedule Of Maturities Of Operating And Finance Leases Liabilities | Maturities of lease liabilities as of September 8, 2019 were as follows: Operating Finance Leases Leases 2019 $ 12,212 $ 791 2020 40,157 2,417 2021 37,979 2,435 2022 34,819 2,453 2023 32,245 2,477 Thereafter 116,664 23,810 Total future minimum rental commitments 274,076 34,383 Less – amounts representing interest (39,745 ) (17,776 ) Total lease liabilities $ 234,331 $ 16,607 Maturities of lease liabilities as of December 30, 2018 were as follows: Operating Finance Leases Leases 2019 $ 40,752 $ 2,396 2020 37,519 2,415 2021 34,538 2,433 2022 30,763 2,451 2023 27,388 2,474 Thereafter 100,310 23,781 Total future minimum rental commitments $ 271,270 35,950 Less – amounts representing interest (18,944 ) Total principal payable on finance leases $ 17,006 |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 8 Months Ended |
Sep. 08, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Cumulative Effects of Changes Made to Consolidated Balance Sheet | The effects of the changes made to the Company’s condensed consolidated balance sheet as of December 31, 2018 for the adoption of ASC 842 were as follows: Balance at Adjustments Due to ASC 842 Balance at Assets Current assets: Prepaid expenses and other $ 25,710 $ (35 ) $ 25,675 Property, plant and equipment: Construction in progress 31,822 (1,904 ) 29,918 Other assets: Operating lease right-of-use — 218,860 218,860 Liabilities and stockholders’ deficit Current liabilities: Operating lease liabilities — 32,033 32,033 Other accrued liabilities 55,001 (136 ) 54,865 Long-term liabilities: Operating lease liabilities — 194,736 194,736 Other accrued liabilities 40,807 (9,712 ) 31,095 |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 820,812 | $ 785,965 | $ 2,468,422 | $ 2,350,732 |
Income from operations | 143,029 | 132,432 | 425,456 | 392,053 |
Segment Income | 161,153 | 143,403 | 482,848 | 438,828 |
Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 485,110 | 445,096 | 1,424,787 | 1,326,076 |
Operating Segments [Member] | U.S. Stores [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 281,116 | 290,445 | 879,490 | 870,474 |
Income from operations | 80,188 | 78,636 | 237,852 | 227,117 |
Segment Income | 82,556 | 75,721 | 248,160 | 230,152 |
Operating Segments [Member] | Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 511,709 | 478,517 | 1,513,380 | 1,426,943 |
Income from operations | 40,513 | 35,452 | 123,840 | 109,319 |
Segment Income | 44,432 | 38,561 | 135,861 | 118,171 |
Operating Segments [Member] | International Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 54,586 | 50,424 | 164,145 | 154,182 |
Income from operations | 42,281 | 39,374 | 126,467 | 120,002 |
Segment Income | 42,337 | 39,416 | 126,628 | 120,138 |
Intersegment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (26,599) | (33,421) | (88,593) | (100,867) |
Segment Reconciling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | (19,953) | (21,030) | (62,703) | (64,385) |
Segment Income | $ (8,172) | $ (10,295) | $ (27,801) | $ (29,633) |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | |
Segment Reconciliation [Abstract] | ||||
Total Segment Income | $ 161,153 | $ 143,403 | $ 482,848 | $ 438,828 |
Depreciation and amortization | (13,132) | (12,460) | (40,982) | (35,770) |
(Loss) gain on sale/disposal of assets | (312) | 5,706 | (3,141) | 5,187 |
Non-cash compensation expense | (4,680) | (4,217) | (13,269) | (15,660) |
Recapitalization-related expenses | (532) | |||
Income from operations | 143,029 | 132,432 | 425,456 | 392,053 |
Interest income | 968 | 792 | 2,583 | 2,451 |
Interest expense | (33,752) | (33,976) | (102,672) | (100,389) |
Income before provision for income taxes | $ 110,245 | $ 99,248 | $ 325,367 | $ 294,115 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders - basic and diluted | $ 86,373 | $ 84,095 | $ 271,382 | $ 250,330 |
Basic weighted average number of shares | 40,954,279 | 41,585,933 | 40,947,693 | 42,150,693 |
Earnings per share – basic | $ 2.11 | $ 2.02 | $ 6.63 | $ 5.94 |
Diluted weighted average number of shares | 42,040,291 | 43,067,191 | 42,158,447 | 43,675,627 |
Earnings per share – diluted | $ 2.05 | $ 1.95 | $ 6.44 | $ 5.73 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 8 Months Ended | ||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | |
Stock Option [Member] | ||||
Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 161,670 | 76,130 | 161,670 | 137,156 |
Restricted Performance Shares [Member] | ||||
Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share, amount unvested | 142,477 | 160,998 | 142,477 | 160,998 |
Restricted Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 28,570 |
Changes in Stockholders' Defi_3
Changes in Stockholders' Deficit - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Oct. 04, 2019 | Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 |
Dividends declared per share | $ 0.65 | $ 0.55 | $ 1.95 | $ 1.65 | |
Subsequent Event [Member] | |||||
Dividends declared per share | $ 0.65 | ||||
Record date of dividend | Dec. 13, 2019 | ||||
Dividend declared date | Oct. 4, 2019 | ||||
Dividend payable date | Dec. 27, 2019 | ||||
Stock repurchase remaining authorized repurchase amount | $ 53.6 | ||||
Subsequent Event [Member] | Previously Reported [Member] | |||||
Share repurchase program, approved amount | 750 | ||||
Subsequent Event [Member] | Maximum [Member] | |||||
Share repurchase program, approved amount | $ 1,000 |
Changes in Stockholders' Defi_4
Changes in Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | ||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | [1] | $ (3,039,921) | |||
Net income | $ 86,373 | $ 84,095 | 271,382 | $ 250,330 | |
Ending Balance | $ (2,935,649) | $ (2,935,649) | |||
Common Stock [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance, (in shares) | 41,232,358 | 41,837,693 | 40,977,561 | 42,898,329 | |
Beginning Balance | $ 412 | $ 418 | $ 410 | $ 429 | |
Issuance and cancellation of stock awards, net (in shares) | 45,479 | 72,990 | 50,640 | 80,932 | |
Issuance and cancellation of stock awards, net | $ 1 | $ 1 | |||
Tax payments for restricted stock upon vesting, (in shares) | (12,603) | (16,580) | (22,044) | (26,893) | |
Purchases of common stock, (in shares) | (384,338) | (397,490) | (430,182) | (1,751,054) | |
Purchases of common stock | $ (3) | $ (4) | $ (4) | $ (18) | |
Exercise of stock options, (in shares) | 18,100 | 99,549 | 323,021 | 394,848 | |
Exercise of stock options | $ 0 | $ 1 | $ 3 | $ 4 | |
Ending Balance, (in shares) | 40,898,996 | 41,596,162 | 40,898,996 | 41,596,162 | |
Ending Balance | $ 409 | $ 416 | $ 409 | $ 416 | |
Additional Paid-in Capital [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | 10,788 | 737 | 569 | 5,654 | |
Tax payments for restricted stock upon vesting | (3,253) | (4,531) | (5,820) | (6,849) | |
Purchases of common stock | (12,972) | (2,269) | (18,062) | (21,514) | |
Exercise of stock options | 832 | 3,760 | 10,119 | 8,963 | |
Non-cash compensation expense | 4,680 | 4,217 | 13,269 | 15,660 | |
Ending Balance | 75 | 1,914 | 75 | 1,914 | |
Retained Deficit [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | (2,911,278) | (2,926,921) | (3,036,471) | (2,739,437) | |
Net income | 86,373 | 84,095 | 271,382 | 250,330 | |
Dividends declared on common stock and equivalents | (26,569) | (22,889) | (80,023) | (69,450) | |
Purchases of common stock | (80,721) | (106,850) | (87,083) | (407,658) | |
Adoption of revenue recognition accounting standard | (6,701) | ||||
Reclassification adjustment for stranded taxes | 351 | ||||
Ending Balance | (2,932,195) | (2,972,565) | (2,932,195) | (2,972,565) | |
Accumulated Other Comprehensive Loss [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | (4,208) | (3,439) | (4,429) | (2,030) | |
Currency translation adjustment | 270 | (84) | 491 | (1,142) | |
Reclassification adjustment for stranded taxes | (351) | ||||
Ending Balance | $ (3,938) | $ (3,523) | $ (3,938) | $ (3,523) | |
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Changes in Stockholders' Defi_5
Changes in Stockholders' Deficit (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 8 Months Ended | ||
Sep. 08, 2019 | Sep. 09, 2018 | Sep. 08, 2019 | Sep. 09, 2018 | |
Dividends declared per share | $ 0.65 | $ 0.55 | $ 1.95 | $ 1.65 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Sep. 08, 2019 | Dec. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 58,993 | $ 11,877 |
Restricted cash equivalents, carrying amount | 104,424 | 112,272 |
Investments in marketable securities, carrying amount | 10,851 | 8,718 |
Advertising fund cash equivalents, restricted, carrying amount | 57,682 | 31,547 |
Advertising fund investments, restricted, carrying amount | 20,000 | 50,152 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 58,993 | 11,877 |
Restricted cash equivalents, carrying amount | 104,424 | 112,272 |
Investments in marketable securities, carrying amount | 10,851 | 8,718 |
Advertising fund cash equivalents, restricted, fair value | 57,682 | 31,547 |
Advertising fund investments, restricted, fair value | $ 20,000 | $ 50,152 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Sep. 08, 2019 | Dec. 30, 2018 |
2015 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 774,000 | $ 780,000 |
Fair Value | 817,344 | 783,120 |
2017 Five-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 588,000 | 592,500 |
Fair Value | 590,352 | 575,910 |
2017 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 980,000 | 987,500 |
Fair Value | 1,038,800 | 956,888 |
2017 Five-Year Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 294,000 | 296,250 |
Fair Value | 293,706 | 295,065 |
2018 7.5-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 419,688 | 422,875 |
Fair Value | 438,573 | 416,955 |
2018 9.25-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 395,000 | 398,000 |
Fair Value | $ 421,465 | $ 396,010 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended |
Sep. 08, 2019 | Dec. 30, 2018 | |
Outstanding Borrowings Amount | $ 0 | $ 65 |
Variable Funding Note [Member] | ||
Long-term Line of Credit, Noncurrent | $ 0 | $ 65 |
Schedule of Contract Liabilitie
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees (Detail) - USD ($) $ in Thousands | 8 Months Ended | |
Sep. 08, 2019 | Sep. 09, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities at beginning of period | $ 19,900 | $ 19,404 |
Revenue recognized during the period | (3,923) | (3,540) |
New deferrals due to cash received and other | 4,613 | 3,917 |
Contract liabilities at end of period | $ 20,590 | $ 19,781 |
Revenue Disclosures - Additiona
Revenue Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 08, 2019 | Dec. 30, 2018 | |
Advertising fund assets restricted | $ 109,490 | $ 112,744 | [1] |
U.S. stores [Member] | U.S. franchise stores [Member] | Cash, cash equivalents and investments [Member] | |||
Advertising fund assets restricted | 88,700 | 95,100 | |
U.S. stores [Member] | U.S. franchise stores [Member] | Prepaid expenses [Member] | |||
Advertising fund assets restricted | 2,500 | 2,300 | |
U.S. stores [Member] | U.S. franchise stores [Member] | Accounts receivable [Member] | |||
Advertising fund assets restricted | 18,300 | 15,300 | |
U.S. stores [Member] | U.S. Company-owned stores [Member] | |||
Cash contributed from Company-owned stores | $ 4,600 | $ 5,500 | |
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Components Of Operating And Fin
Components Of Operating And Finance Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended |
Sep. 08, 2019 | Sep. 08, 2019 | |
Operating lease cost | $ 9,150 | $ 29,464 |
Finance lease cost: | ||
Amortization of right-of-use assets | 254 | 763 |
Interest on lease liabilities | 473 | 1,269 |
Total finance lease cost | $ 727 | $ 2,032 |
Supplemental balance sheet info
Supplemental balance sheet information related to the Company's leases (Detail) - USD ($) $ in Thousands | Sep. 08, 2019 | Dec. 30, 2018 |
Land and buildings | $ 22,195 | $ 22,171 |
Accumulated depreciation and amortization | (7,441) | (6,678) |
Finance lease assets, net | 14,754 | 15,493 |
Current portion of long-term debt | 685 | 643 |
Long-term debt, less current portion | 15,922 | 16,363 |
Total principal payable on finance leases | $ 16,607 | $ 17,006 |
Finance Lease, Weighted Average Remaining Lease Term | 14 years | |
Finance Lease, Weighted Average Discount Rate, Percent | 11.40% | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.80% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended |
Sep. 08, 2019 | Sep. 08, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 9,968 | $ 30,056 |
Operating cash flows from finance leases | 473 | 1,269 |
Financing cash flows from finance leases | 161 | 422 |
Right-of-use assets obtained in exchange for new lease obligations: | ||
Operating leases | 23,434 | $ 49,802 |
Finance leases | $ 0 |
Maturities Of Lease Liabilities
Maturities Of Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 08, 2019 | Dec. 31, 2018 | Dec. 30, 2018 |
2019 | $ 12,212 | $ 40,752 | |
2020 | 40,157 | 37,519 | |
2021 | 37,979 | 34,538 | |
2022 | 34,819 | 30,763 | |
2023 | 32,245 | 27,388 | |
Thereafter | 116,664 | 100,310 | |
Total future minimum rental commitments | 274,076 | 271,270 | |
Less – amounts representing interest | (39,745) | ||
Total lease liabilities | 234,331 | $ 226,800 | |
2019 | 791 | 2,396 | |
2020 | 2,417 | 2,415 | |
2021 | 2,435 | 2,433 | |
2022 | 2,453 | 2,451 | |
2023 | 2,477 | 2,474 | |
Thereafter | 23,810 | 23,781 | |
Total future minimum rental commitments | 34,383 | 35,950 | |
Less – amounts representing interest | (17,776) | (18,944) | |
Total principal payable on finance leases | $ 16,607 | $ 17,006 |
Lease Disclosures - Additional
Lease Disclosures - Additional Information (Detail) $ in Millions | 3 Months Ended | 8 Months Ended | 14 Months Ended | |||
Sep. 08, 2019USD ($) | Sep. 09, 2018USD ($) | Sep. 08, 2019USD ($) | Sep. 09, 2018USD ($) | Mar. 24, 2019 | Dec. 30, 2018USD ($) | |
Rent Expenses | $ 16.1 | $ 15.7 | $ 48.4 | $ 46.3 | ||
Finance Lease | $ 11.4 | |||||
Potential future payments | 17.9 | 17.9 | $ 2.4 | |||
Number of supply chain center buildings under capital lease | 3 | 3 | ||||
Lease One [Member] | ||||||
Capital lease of supply chain center building expiration year | 2036 | |||||
Lease Two [Member] | ||||||
Capital lease of supply chain center building expiration year | 2037 | |||||
Lease Three [Member] | ||||||
Capital lease of supply chain center building expiration year | 2033 | |||||
Operating Lease [Member] | ||||||
Lessee, operating lease, lease not yet commenced, future minimum rental commitments | $ 50.6 | $ 50.6 | ||||
Lease Term | 15 years | 15 years |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) - Yvonne Wiederhold [Member] $ in Millions | Feb. 14, 2011USD ($) |
Legal Settlement By Party [Line Items] | |
Amount delivered for plaintiff | $ 9 |
Percentage liable by company for plaintiff | 100.00% |
Litigation settlement, amount | $ 8 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended |
Sep. 08, 2019 | Dec. 30, 2018 | |
Schedule of Cash Flow, Supplemental [Line Items] | ||
Capital expenditure accrual | $ 4.7 | $ 3.8 |
Sale of Company-Owned Stores -
Sale of Company-Owned Stores - Additional Information (Detail) $ in Millions | 3 Months Ended | 8 Months Ended | |
Sep. 08, 2019USD ($) | Jun. 16, 2019USD ($)Store | Sep. 08, 2019USD ($) | |
Number of company-owned stores sold | Store | 59 | ||
Consideration For Sale Of Stores | $ 9.7 | ||
Proceeds from sale of assets | $ 1.6 | $ 8.1 | |
Pre-tax loss on sale of assets, net of goodwill reduction, charged to general and administrative expenses | $ 2.4 | ||
Reduction of goodwill related to sale of stores | $ 1.4 |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 08, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 226,800 | $ 227,495 |
Operating Lease, Liability | 226,800 | 234,331 |
Derecognition of Liabilities | $ 1,900 | |
Other Accrued Liabilities And Prepaid Expenses [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of Accrued Liabilities to the Right of Use Asset | $ 7,900 |
New Accounting Pronouncements_2
New Accounting Pronouncements - Cumulative Effects of Changes Made to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 08, 2019 | Dec. 31, 2018 | Dec. 30, 2018 | |
Current assets: | ||||
Prepaid expenses and other | $ 15,438 | $ 25,710 | [1] | |
Property, plant and equipment: | ||||
Construction in progress | 26,649 | 31,822 | [1] | |
Other assets: | ||||
Operating lease right-of-use assets | 227,495 | $ 226,800 | ||
Current liabilities: | ||||
Operating lease liabilities | 32,203 | |||
Other accrued liabilities | 103,162 | 121,363 | [1] | |
Long-term liabilities: | ||||
Operating lease liabilities | 202,128 | |||
Other accrued liabilities | $ 32,589 | 40,807 | [1] | |
Scenario, Previously Reported [Member] | ||||
Current assets: | ||||
Prepaid expenses and other | 25,710 | |||
Property, plant and equipment: | ||||
Construction in progress | 31,822 | |||
Current liabilities: | ||||
Other accrued liabilities | 55,001 | |||
Long-term liabilities: | ||||
Other accrued liabilities | 40,807 | |||
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Current assets: | ||||
Prepaid expenses and other | (35) | |||
Property, plant and equipment: | ||||
Construction in progress | (1,904) | |||
Other assets: | ||||
Operating lease right-of-use assets | 218,860 | |||
Current liabilities: | ||||
Operating lease liabilities | 32,033 | |||
Other accrued liabilities | (136) | |||
Long-term liabilities: | ||||
Operating lease liabilities | 194,736 | |||
Other accrued liabilities | $ (9,712) | |||
Scenario As Restated [Member] | ||||
Current assets: | ||||
Prepaid expenses and other | 25,675 | |||
Property, plant and equipment: | ||||
Construction in progress | 29,918 | |||
Other assets: | ||||
Operating lease right-of-use assets | 218,860 | |||
Current liabilities: | ||||
Operating lease liabilities | 32,033 | |||
Other accrued liabilities | 54,865 | |||
Long-term liabilities: | ||||
Operating lease liabilities | 194,736 | |||
Other accrued liabilities | $ 31,095 | |||
[1] | The balance sheet at December 30, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |