Domino's Pizza Q22009 Financial Results, impact of option modifications

ANN ARBOR, Mich. /PRNewswire-FirstCall/
-- Domino's Pizza, Inc. (NYSE: DPZ), the recognized world leader in
pizza delivery, today announced results for the second quarter ended
June 14, 2009. Domestic same store sales were down 0.7% and
international same store sales grew 4.1%. The international division
continued its strong performance, posting its 62nd consecutive quarter
of same store sales growth. Net income as-reported was down 22.4%
versus the prior year, due primarily to the negative impacts of foreign
currency, gains on the sale of Company-owned stores in 2008 and
expenses incurred in connection with changes made to the Company's
stock option plans, offset in part by gains on the extinguishment of
debt.

    Second Quarter Highlights:



    (dollars in millions,       Second      Second     First Two     First Two

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Stock Option Plan Changes



As previously announced, the Company's shareholders approved a stock
option exchange program at the 2009 Annual Meeting of Shareholders,
held on April 28, 2009, and the Company executed the program during the
second quarter of 2009. The incremental value to the option holders
created as a result of the modification will be recognized as
additional compensation expense over the remaining service period. This
amount has been calculated to be approximately $1.3 million
(after-tax), of which approximately $0.6 million (after-tax) was
recognized during the second quarter of 2009.



Separately and as previously announced, the Company's Board of
Directors authorized management to amend existing stock option
agreements to allow for accelerated vesting and extended exercise
periods upon the retirement of option holders who have achieved
specified service and age requirements. The amended terms of the
relevant stock option agreements became effective in the second quarter
of 2009. The incremental value to option holders created as a result of
the modification will be recognized as additional compensation expense
over the remaining service period. This amount has been calculated to
be approximately $0.3 million (after-tax), of which approximately $0.2
million (after-tax) was recognized during the second quarter of 2009.
The Company is required to accelerate previously unrecognized
compensation expense that it would have been required to expense in
future periods for these stock options. This resulted in the
acceleration of approximately $2.1 million (after-tax) of compensation
expense in the second quarter of 2009 for certain employees who elected
to receive the aforementioned amendment and who will meet the specified
service and age requirements prior to the original vesting date. The
$2.1 million (after-tax) of compensation expense recognized in the
second quarter of 2009 was not incremental expense, but merely an
acceleration of expense that would have been recognized in future
periods.