Domino's Pizza, Inc. (NYSE:DPZ) Q4 2017 Earnings Conference Call Transcript
Feb 20, 2018 • 10:00 am ET
Good morning. My name is Amy and I will be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter 2017 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.
Tim McIntyre, you may begin your conference.
Timothy P. McIntyre
Thank you, Amy, and hello, everyone. Thank you for joining us on the call today about the results of our fourth quarter and full-year 2017.
As you know, this call is primarily for our investor audience, so I kindly ask that all members of the media and others be in a listen-only mode throughout the call. In the unlikely event that any forward-looking statements are made, I refer you to the Safe Harbor statement you can find in this morning's release and the 10-K.
As always, we will start with prepared comments from Domino's Chief Financial Officer, Jeff Lawrence and from our Chief Executive Officer, Patrick Doyle, followed by your questions.
With that, I'd like to turn the call over to CFO, Jeff Lawrence.
Jeffrey D. Lawrence
Thank you, Tim, and good morning, everyone. We are thrilled to report our results for the fourth quarter and full-year fiscal 2017. During the quarter, we continued to build on the positive results we posted during the first three quarters of the year and delivered strong results for our shareholders. We continue to lead the broader restaurant industry, with 27 straight quarters of positive US comparable sales and 96 consecutive quarters of positive international comps. We also continued to increase our store count at a healthy pace as we opened more than 400 net new stores in the fourth quarter. Our diluted earnings per share was $2.09, which is an increase of more than 41% over the prior year quarter. This increase primarily resulted from strong operational results and a lower effective tax rate.
With that, let's take a closer look at the financial results for Q4. Global retail sales, which are the total retail sales at franchise and the Company-owned stores worldwide, grew 11.7% in the quarter. When excluding the impact of foreign currency, global retail sales grew by 9.9%. This global retail sales growth was driven by an increase in the average number of stores opened during the quarter and same-store sales growth. Same-store sales for our domestic division grew 4.2% lapping a prior year increase of 12.2%. Same-store sales for our international division grew 2.5% lapping a prior year increase of 4.3%.
Breaking down the domestic comp, our US franchise business was up 4.2%, while our Company-owned stores were up 3.8%. These comp increases were driven by ticket and to a lesser extent continued order count growth. The ticket growth in the quarter resulted primarily from a higher number of average items per order in Q4 as compared to the prior year.
On the international front, all four of our geographic regions were again positive in the quarter with Europe and