Dominos Pizza Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.49%.
Did DPZ Beat Earnings? Q2 2025 Results
Domino's Pizza delivered a split verdict in Q2 2025, beating on revenue but falling short on the bottom line, as a tangle of non-operational headwinds overshadowed what was otherwise a strong operating quarter. Total revenues climbed 4.3% year-over-year to $1.15 billion, edging past the $1.14 billion consensus estimate, driven by supply chain volume growth, higher U.S. franchise royalties, and global retail sales reaching $4.67 billion. Yet diluted EPS of $3.81 missed the $3.96 consensus by 3.75%, with net income falling 7.7% to $131.09 million, the culprit being a $27.40 million unfavorable swing in unrealized losses on the company's investment in DPC Dash Ltd, compounded by an effective tax rate that jumped to 22.1% from 15.0% a year ago. Beneath the headline miss, operational fundamentals held firm, with U.S. same-store sales growing 3.4%, 178 net new global store openings, and income from operations surging 14.8% to $225.04 million. Insider selling activity in recent months has drawn some investor scrutiny, adding a cautious undercurrent to an otherwise operationally solid print.
- U.S. same store sales growth of 3.4% driven by both delivery and carryout
- International same store sales growth of 2.4% excluding foreign currency impact
- Supply chain revenue growth from 4.8% food basket pricing increase and higher order volumes
- Supply chain gross margin expanded 0.5 percentage points from procurement productivity
- Lower G&A expenses due to absence of biennial Worldwide Rally held in Q2 2024
- $3.9 million pre-tax refranchising gain from sale of 36 Maryland stores
- Global net store growth of 178 in the quarter
“Our team delivered strong Q2 results. Internationally, we continued to grow despite macro challenges. In the U.S., both delivery and carryout grew, driving meaningful market share gains within the U.S. pizza QSR category. We are now fully rolled out on the two largest aggregators and offer all the major crust types, including stuffed crust. With what we believe are best-in-class unit economics, the largest advertising budget, a robust supply chain, and a rewards program that is bigger than ever, our business is well-positioned. We've never had more tools to drive long-term value creation for our franchisees and shareholders.”
Domino's Pizza CEO, on the earnings call
DPZ YoY Financials
DPZ Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.