Dominos Pizza Q2 2009 Earnings Call Transcript

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2009-07-22 13:54:18.0

Tags: Platform, Call Transcript, Quarter, Earnings, Citigroup Inc., Seeking Alpha, Dominos Pizza Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Gregory Badishkanian – Citi.

Gregory Badishkanian – Citi

A few questions on same store sales and I think you had a 1% to 2% impact from the You Tube video for the quarter, so would you say that same store sales are running in the positive range at this point?

David Brandon

Yes, if we were to take away the impact which was pretty abrupt and pretty measurable of that incident, we would have completed the quarter positive somewhere between a point to two points, a continuation of the momentum that we saw in the first quarter. So we feel very good about the quarter and the fact that we were able to collect on this insurance payment, we think although we would have loved to have had a positive number, we wish it never would have happened. It really lessened the blow in terms of any impact it had on the financial results of the quarter.

Gregory Badishkanian – Citi

Talking a little bit about initiatives, oven baked sandwiches, pasta, if you could let us know in terms of how they've been performing relative to your expectations and anything new in the horizon that you can share with us knowing that your competitors are listening to this as well.

David Brandon

Right. Thanks for referencing that. It was only a couple of years ago if you put in football vernacular, we had a playbook of one play in it, and it was pizza, and now what's really interesting and fun and exciting about where we sit is that we carefully described what we're doing as platforms.

We have a sandwich platform. We have a pasta platform. We have a brand new high end premium pizza platform. And the reason platform is appropriate is because we can build upon what we already have. It opens up a whole new realm for us in terms of flavors and varieties, line extensions, the kinds of things that give us the chance to not only expand our menu, but create more news so that new things are not one time events.

So I think what you should for from us is to continue to build upon all of these proven platforms. We've driven the mix of each one of them up well into the double digits and proved that we have a lot of people out there who are interested in these products, who enjoy them, and we can build upon that as we move forward. So we couldn't be more pleased.

 

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