Good morning. My name is Kelly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter Year-End 2014 Earnings Conference 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. Thank you. Mr. Hall, you may begin your conference.

Thanks, Kelly. On behalf of Lynn Liddle and Investor Relations, I'd like to welcome everyone to Domino's Pizza's fourth quarter earnings call. As usual, we have on the call, Patrick Doyle, our President and CEO; and Mike Lawton, our Chief Financial Officer. After their prepared remarks, we'll open the call up for Q&A. We are asking, since this is an investor call, that members of the media remain in listen-only mode. Also regarding any forward-looking statements that may be made today, I will direct everybody to the Safe Harbor statement on page seven of today's earnings release. And now, I'll turn it over to Mike Lawton. Michael T. Lawton - Chief Financial Officer & Executive Vice President: Thank you, Mitch and good morning, everyone. We are pleased to report our results this morning for the fourth quarter and fiscal 2014. During the quarter, we continued to build on a positive result we posted during the first three quarters of the year, and we delivered solid results for our shareholders. Our international and domestic divisions posted strong same-store sales growth. We opened a significant number of new stores, both domestically and internationally, and adjusted EPS grew 16.7% over the prior-year quarter. Global retail sales, which are the total retail sales at franchise and company-owned stores worldwide, grew 10.6%. When we exclude the negative impact of foreign currency, global retail sales grew by 13.7%. The drivers of this growth included domestic same-store sales, which rose sharply by 11.1% in the quarter. The increase this quarter was comprised of franchisees same-store sales which were up 11.0% and company-owned stores, which were up 11.9%, due primarily to strong order growth. We also saw ticket growth during the quarter. We are pleased to report that we opened 51 net domestic stores in the fourth quarter,…

Your first question will come from the line of John Glass with Morgan Stanley. John Glass - Morgan Stanley & Co. LLC: Thanks very much. First, Mike, just a question on the G&A. I want to make sure I understand it. For the year for 2014, it seemed like it came in higher than we had expected. I think you talked about an increase of $3 million to $6 million, and ex the point (19:01), I think it was like $8 million. So was there an overrun in G&A relative to our expectations? Or do I have maybe that wrong somehow? Michael T. Lawton - Chief Financial Officer & Executive Vice President: Yeah. We came out a little bit higher. We've been both – the variable comp that's certainly compared for the year is higher than we would have originally expected because we had a really strong year. John Glass - Morgan Stanley & Co. LLC: Okay. So that's where – if there's a source from it, that is what it is, it was the bonus accrual, it's not technology or other spending in the business, is that correct? Michael T. Lawton - Chief Financial Officer & Executive Vice President: Most of it was pretty much in line. I mean, certainly as you've seen, I mean over the last two years, we've continually said that we were going to be increasing G&A and sometimes it's a function of when you can get the hiring done as you're trying to add people. And we're a lot closer to where we wanted to be staffed at the end of the year than where we were in the first part of the year. John Glass - Morgan Stanley & Co. LLC: Okay. J. Patrick Doyle - President, Chief Executive Officer & Director: If you look at the whole year, the overage from what we had said at our Investor Day, at the beginning of 2014, the overage was entirely around kind of variable comp and incentives out to franchisees based on performance. John Glass - Morgan Stanley & Co. LLC: Yeah. That makes sense. And then, just the reorg of the distribution businesses, is that just an accounting exercise or are there actually efficiencies you think you're going to gain now in the distribution business? Is there more of a business reason for that combination? Michael T. Lawton - Chief Financial Officer & Executive Vice President: Well, it's certainly partly a business reason of getting the Canadian subsidiaries underneath. But it isn't something that you're necessarily going to see a big number on because some of our efficiencies also affect the whole – the system and how that affects franchisee pricing. So, I wouldn't count on a lot out of that. But I think it's the right thing to do for the business. John Glass - Morgan Stanley & Co. LLC: Got you. Thank you.

Your next question will come from the line of Karen Holthouse with Goldman Sachs. Karen, your line is open. Karen Holthouse - Goldman Sachs & Co.: Sorry. I was on mute. Congratulations on a great quarter. So, there's been press even in the U.S. about a promotion that's been running in Australia, Pizza Mogul, and I'm curious just the thought process around sharing that particular promotion in other markets, and any reasons why it wouldn't work in the U.S. the way that it has in Australia? Thanks. J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah. Karen, I think what I'd say is, we've got fabulous kind of innovation coming with technology around the world. We're trying things out in lots of different places. And we all kind of learn from the other markets as they do things. And so, we've certainly been watching the success of that in Australia. It's something that they've certainly been very excited about. And we'll look at it and make the determination of whether it makes sense in other markets based on kind of the results that we see from it. But overall, what it shows, I think, once again is that innovation does not only have to be about products. It can be about ways that we're taking technology to consumer. And clearly, they've been very happy with it in Australia. Karen Holthouse - Goldman Sachs & Co.: Okay. Thank you.

Thanks, Karen.

Your next question will come from the line of Brian Bittner with Oppenheimer. Brian J. Bittner - Oppenheimer & Co., Inc. (Broker): Thanks. Good morning, guys. Two questions. The first is on the same-store sales. As you saw your comps really accelerate here into the double-digit range from the third quarter levels, was the majority of that traffic or did you also see a lot of people checking out at a higher average? J. Patrick Doyle - President, Chief Executive Officer & Director: No, majority of that is traffic. Brian J. Bittner - Oppenheimer & Co., Inc. (Broker): Okay. And the second question, in the U.S., you saw almost 100 net new stores opened in 2014, and looking back at my model, that's the most since 2004. I guess it makes sense, obviously, with the improving economics. But you're around 5,000-ish stores today in the U.S. Can you remind us where you think that can go? And on top of where you think that can go, where is it that you're most under-penetrated, where will these stores be built? J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah. I mean, I think we've still got 1,000-plus stores that we can build in the U.S. There are some geographies that have a little bit more room for penetration than others, but it's largely everywhere. There is fill-in opportunities in a lot of markets. And so, while there are some areas in the Midwest and there was some opportunities in Northern California and some other places, really, it's filling in new areas or existing areas around the country. So, I don't know that it's going to be particularly geographically concentrated, but we definitely think there's kind of 1,000-plus that we can build over time. Brian J. Bittner - Oppenheimer &…

Your next question will come from the line of Jeffrey Bernstein with Barclays.

Great. Thank you very much. Two questions. Just one from a comp perspective. With the double – with the ramp-up to, I guess, double-digit type comps at least in the U.S., I'm just wondering if there's any maybe underlying trends in terms of what type of store were seeing the outsized growth. We often hear that some of the higher-volume stores are actually seeing the greatest lifts. So, I'm just wondering, as you look at the system, where is the greatest strength coming from? And then maybe is the reimaging providing an outside lift, or is it more delivery versus take-out shift going or pizza is (26:54)? J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah. Jeff, it really is fundamental across-the-board growth. Is it not geographically-based, it is not about higher-volume versus lower-volume stores. It is – and as you know, we were out with kind of the same price point we've run before. And the advertising for the quarter was mostly around Dom and new ways that people could access the brand through voice ordering. So, it is really about fundamental strength. It was – the vast majority of the growth was order count versus tickets. And it is just the broad strength of the brand and where we are with consumers now. We clearly feel very, very good about where we are and about the results that we put up.

Got it. And then just from a menu pricing perspective, one, I'm just wondering as you assess it, where it currently sits and maybe what you're suggesting to franchisees. I mean, with the commodity basket now going to be down in 2015, I'm just wondering whether there's maybe an uptick in discounting with the inflation easing, whether it's by yourself or by peers of yours that might do something along those lines? J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah. I think our system has been remarkably disciplined. And last year, in the face of record high cheese costs, they held the line and their profits continued to increase despite being pretty modest about kind of price increases through the system last year. So – and now as cheese costs come down, obviously, that's good news for store-level profitability, but I don't think you're going to see material pricing changes from the system. They've just been very, very disciplined about doing what is best for the customer, and that's clearly played into very, very strong results.

Would you think the industry might get more aggressive or you think everyone kind of has that same discipline as the prices ease? J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah, I can't predict what our competition is going to do. I guess what I'd say is everybody has to address margins in their own way. While food costs are off, there are probably some labor pressures out there. So I don't know – I don't know that you're going to see a dramatic change, really, from the industry. But obviously, those are decisions they're going to make.

Understood. Thanks. J. Patrick Doyle - President, Chief Executive Officer & Director: Thanks, Jeff.

Your next question will come from the line of Chris O'Cull with KeyBanc.

Thanks. Good morning, guys. J. Patrick Doyle - President, Chief Executive Officer & Director: Morning, Chris.

Patrick, independents appear to be have had net closures for two consecutive years. What do you think are the primary factors driving the wedge in performance between you guys and independents? J. Patrick Doyle - President, Chief Executive Officer & Director: There have been three factors over time that I've always looked at in kind of the scale advantage that somebody like a Domino's has versus the independents. It's the efficiency of our food cost, it's the know-how around the brand and how to efficiently run a unit. And it's the advertising and kind of the brand strength that you have. And for many, many years, those three did not drive consolidation in the category. And you started to see now the last few years, some real consolidation. And I think the different has been technology. Our technological advantage, the ability for customers to access the brand that way, the ability for us to build a platform that we think is absolutely second to none in terms of giving the consumer a great experience with Domino's is just something that the smaller players are either not able to do or not able to do anywhere near as well and as efficiently as we do it. And I think that alone, we're doing a lot of other things right. I mean, our advertising and branding and the efficiency of our market spend and all of those things are clearly working. We think that getting the stores reimaged is going to be a positive. And we've got fabulous franchisees who are excited and motivated about where we are. They're driving the brand. It's a lot of things playing into it, but I think the big new factor has really been technology and our ability to drive business through that. And it's just something they haven't been able to match, and so it's put real pressure on their sales and ultimately their profitability. And that's why we've been taking pretty consistent share.

Very helpful. And then, one other question, Mike, since the Analyst Day, we've seen a large refinancing by Dunkin in the ABS market, and another company looks to be entering that market. Are there any reasons you would not refi the callable portion of that debt in October this year? Michael T. Lawton - Chief Financial Officer & Executive Vice President: Well, we'll have to assess at that point in time based on market conditions and also recognizing that the whole thing becomes callable, not too many years down the road and it'll just be part of what it looks like at that point in time.

Does refiing the callable portion cause you any difficulties in refiing the remaining portion in July 2017? Michael T. Lawton - Chief Financial Officer & Executive Vice President: It depends on the duration of the debt and what you decide to – kind of what your plans could be going forward. So, not necessarily. It's just as we get to that point in time, we will certainly look hard at it.

Okay. Great. Thanks, guys.

Your next question will come from the line of Alex Slagle with Jefferies.

Hey. Thanks. Just wanted to follow up on Jeff's question and get your perspective on historically, when you look back, I mean, what were the biggest drivers behind the price point battles in the industry? And like, what are the things we should really watch out for as red flags? J. Patrick Doyle - President, Chief Executive Officer & Director: Well, we're obviously pretty happy with where we are in the profits that we're generating at the store level for the franchisees. Our pricing has been working. It's interesting. I've always had a very different perspective about pricing in the category than even some of comments I've heard from the investor community and some of my competitors. I think it's always been viewed as this highly promotional category. And my view is if it were that aggressive on pricing, you'd have seen more consolidation in the category over time than you've seen. This has been the least consolidated category within the restaurant industry for a very long time. And so, you're now starting to see some consolidation. And it's been pretty consistent over the last few years. So, I go back to the pricing overall, it's generating good growth for us. It's generating good growth and profits for our franchisees. Overall, I'm happy with where it is. I'm obviously very happy with the overall performance of the business. And we can generate good sales growth and good profit growth with kind of the approach that we brought to pricing, then I'm very happy with where we are. And as you know, our national price point has been the same now for a number of years. And it's clearly been working.

Okay. Thank you.

Your next question will come from the line of Mark Smith with Feltl & Company.

Hi, guys. I just want to look at the traffic or order count a little bit deeper. Can you talk at all about frequency from current customers versus kind of new customers to Domino's? J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah. It's been a pretty good mix of both of those from order count. And I guess what I'd say is the customer base, certainly new customers coming in, but I think what's maybe even more important is retention of existing customers as we're giving them a better experience. And within that retention is also improved frequency. So, I think it's – those are really the three factors that will drive higher order counts, and it's been a pretty good combination of those. But I think the retention and the experience and the customer satisfaction that our existing customers have has been really the primary driver of it.

Okay. Second, at the Investor Day, you talked a bit about expanding company-operated restaurants. Any more insight on kind of your thoughts behind that and when maybe we see more of a ramp in build-out from here? J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah. I mean, I don't think you're going to see a big ramp. We just feel like we should be doing our part. The unit economics are good. You're certainly going to see us building some, but you're not going to see a notable increase in the mix of corporate stores. We feel pretty good about where we are in terms of the number of corporate stores. We think we definitely need to be doing our fair share of the building, but you're not going to see a material increase in the mix of corporate stores. You're probably going to see more it staying kind of line with where it is and basically are doing our part of the growth of the overall system.

Okay. Great. Thank you.

Your next question will come from the line of John Ivankoe with JPMorgan.

Hi. Great. You mentioned in your prepared comments, and I think you've mentioned it before about your point-of-sale enhancements. Could you talk about maybe what kind of functionality that you would like that you don't have and how they may influence the sales and profitability of your business overall? J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah. I mean, the point-of-sale system, obviously, it gives us something that's having one system and I think this is maybe most important, there are lots of great functionality around it and kind of what we have there. But I think what's most important is that we have one. And it gives us efficiency as we tie online ordering to it and all the rest of it. But it is just a point-of-sale system at the end of the day. There is reporting behind it and some analytics that the franchisees can look at and kind of analyze their business and how it's doing and we think that's important for them. But I think the most important thing – I think it's a great system. I think it's the best out there for managing our business. But I think what's even more important is that we've got this one system that gives us consistency. It allows us to tie these online ordering platforms to it more efficiently. And you're now at not only 100% of the U.S. But as we mentioned, about 70% of our international stores are now either on it or have signed up and will be moving on to it. And we think it just brings great efficiencies. At the end of the day, it's a tool that the franchise use in different ways – the franchisees use in different ways to manage their business. But we think having that one platform has been a really powerful tool for us as we've been driving e-commerce.

And that is, I guess, the question. So, 100% of the system is currently on PULSE, correct? J. Patrick Doyle - President, Chief Executive Officer & Director: In the U.S.

In the U.S. Is there any kind of major enhancement that you can do or would like to do to the existing U.S. PULSE system? J. Patrick Doyle - President, Chief Executive Officer & Director: No. I don't know that there are kind of big specific things that we're working on. We were always coming up with new ways to make it a little bit better and a little bit easier. And can you speed up the order-taking process or the accuracy or all of that? But at the end of the day, it's working well. Where we're spending a lot of our time and effort are on kind of the e-commerce platforms that are tying to it. And we think that's ultimately the big win.

Thank you.

Your next question will come from the line of Peter Saleh with Telsey Advisory.

Hey. Thanks. Congrats on a great year. I know we always talk about the 50% of the orders that are digital, but what about the other, call it, 50% of the orders that are coming in? What's the biggest hurdle to converting those orders to digital and maybe accelerating that beyond that, call it, 5% or 6% growth rate every year? J. Patrick Doyle - President, Chief Executive Officer & Director: Yes. So, I think there are a couple things. So, first of all, a little under 10% of our overall orders are people walking into the store and placing the order right there. So, roughly, today, if you talk about 50% digital, what you're really looking at is 50% digital, a little over 40% over the phone and about 10% walk-in. And so, the walk-in customers, there may be some things we can do that they're using a kiosk or whatever. But the bigger opportunity is kind of around the 40% that are still calling in. And the answer is, we want our customers to be able to access the brands however they want to access the brands. And there are still people who would rather call in and place that order and do it over the phone, using their voice as opposed to one of our apps or digitally ordering, and we want to make sure that's a great experience for them as well. And so, what we're seeing is I think we're doing things to make our digital platforms better and better, and more and more efficient. But some of this is just about people kind of adopting technology, and when do they decide that they want to shift from ordering over the phone to ordering digitally. I think the one area that I would say that…

Great. And then just on labor turnover, anything to talk about there, as the labor market's tightening, ability to hold on to your labor and hire new drivers? J. Patrick Doyle - President, Chief Executive Officer & Director: It's interesting. I've said often that the number one thing that correlates to strength in our sales is people who are employed. Employed people buy more pizza than unemployed people. And the labor market strengthening is clearly one of the contributing factors to the strength of our business overall. We think it's a good thing. So, the first thing I'd say is, I love the fact that the labor market is strengthening. I love the fact that more people are employed. And to the extent to which that means the labor market tightens up a little bit, that's a great thing. I mean, that's an overall positive for the economy and for our business. And there are some areas where we are certainly feeling it, and it gets a little bit tougher. I don't know that our turnover has gone up. In fact, it has not gone up. But certainly, there are franchisees who are more focused on staffing their stores and making sure that we're giving great service. And if that puts a little bit of pressure on wages as well, that's an okay thing because there's a big offset in terms of a healthier economy and top line as well. So, certainly, something we look at. We got to make sure that the franchisees are treating people right, that they're training them correctly, that they're doing everything they can to make it a good experience for them. And they do that in a variety of ways and is part of why having an entrepreneurial system is great because they address those needs market by market.

Great. Thank you very much.

Your next question will come from the line of Joseph Buckley with Bank of America.

Thank you. Just a couple of questions. The same-store sales in the U.S. were phenomenal, but looked like the company store margins were actually down year-over-year. I know you mentioned food cost inflation. Is there anything else behind that? I guess, I would have thought the comp might have overcome the food costs? J. Patrick Doyle - President, Chief Executive Officer & Director: Yeah. Well, their absolute profits were up. But the percentage margin was off a little bit because of – food was still high in the fourth quarter. Food's now down. And so, clearly, that's going to help. But the traffic growth and the sales growth more than offset kind of the food cost pressure that we had. And so, ultimately, it drove more dollar profits. But that was mostly a result of food cost in the fourth quarter.

Okay. And then the CapEx number for the full year and for the fourth quarter came in a little higher than I thought even with the airplane shift. So, was some of that just spending against the things that you've talked about as the overall CapEx numbers moved higher or was there anything unusual in that? Michael T. Lawton - Chief Financial Officer & Executive Vice President: The key thing is when you look at our software and what we're doing on the e-commerce and the point-of-sale and everything else that we do, we're pretty – we're really good at estimating how much cash is going to go out the door for the year. It's a little bit tougher to get exactly which piece is going to get capitalized as internally-developed software versus what part is going to hit the expense lines and then what people are working on, and that's really about the only difference that's in there.

Okay. And then just last one – yeah, so the increase in the dividend obviously – but didn't look back there's any share buyback in the quarter and just curious why that was the case. Michael T. Lawton - Chief Financial Officer & Executive Vice President: We've spent over $80 million in the first three quarters. And you saw a pretty rapid runoff in the price. And the fact is since I had a good chunk of the money spent, I was kind of watching to see what happened. That's all.

Okay. Okay. Thank you.

And we have no further questions in queue at this time. Presenters, are there any closing remarks? J. Patrick Doyle - President, Chief Executive Officer & Director: No. Just like to thank everybody for being on the call and I look forward to talking to you again as we report our first quarter earnings on April 23. Thanks, everybody.