Core Insights - The article discusses the investment position of Parkev Tatevosian, CFA, and his affiliation with The Motley Fool, which recommends Domino's Pizza [1] Company Analysis - Parkev Tatevosian has no position in any of the stocks mentioned, indicating a neutral stance on the stocks discussed [1] - The Motley Fool has positions in and recommends Domino's Pizza, suggesting a positive outlook on the company's performance [1] Disclosure and Compensation - Parkev Tatevosian may be compensated for promoting The Motley Fool's services, which could influence his opinions [1] - The Motley Fool has a disclosure policy that outlines its investment positions and potential conflicts of interest [1]

Financial Data and Key Metrics Changes - Income from operations increased by 1.4% in Q1, excluding foreign currency impact, primarily due to gross margin dollar growth within the supply chain and higher international franchise royalties and fees [16] - Global retail sales grew by 4.7% in Q1, driven by positive international comps and global net store growth compared to the previous year [17] - U.S. retail sales grew by 1.3%, primarily driven by net store growth, while same-store sales declined by 0.5% [17][18] - International retail sales grew by 8.2%, excluding foreign currency impact, with same-store sales at 3.7% [20] Business Line Data and Key Metrics Changes - The U.S. carryout business comps were up 1%, while delivery was down 1.5% in the quarter, indicating a shift in consumer preference [18] - The launch of the Parmesan Stuffed Crust Pizza is expected to drive future sales, although it had minimal impact in Q1 due to its late introduction [7][8] Market Data and Key Metrics Changes - The U.S. QSR pizza category was roughly flat to start the year, while Domino's outperformed with a 1.3% growth in retail sales [17][18] - International markets showed strength, particularly in Asia, driven by strong comps in India and Canada [20][21] Company Strategy and Development Direction - The "Hungry for More" strategy focuses on driving sales, store growth, and profits through innovation, operational excellence, and renowned value [5][6] - The company plans to launch at least two new products each year, with the Parmesan Stuffed Crust Pizza being a significant addition [6][7] - A partnership with DoorDash is expected to enhance delivery capabilities, with a national launch anticipated in May [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro backdrop but expressed confidence in achieving market share gains [5][16] - The company expects U.S. same-store sales to be around 3% for the year, with potential macro pressures impacting this guidance [22][75] - International same-store sales growth is expected to be between 1% to 2%, considering geopolitical and macroeconomic pressures [22][114] Other Important Information - The company repurchased approximately 115,000 shares at an average price of $434, totaling $50 million in Q1 [21] - Organizational changes were made to streamline operations, which included the elevation of key executives [13][14] Q&A Session Summary Question: Impact of geopolitical pressures on international markets - Management noted that geopolitical volatility could impact demand, which is reflected in the guidance of 1% to 2% growth for the year [26][27] Question: Incrementality expectations from DoorDash - Management expects DoorDash to contribute approximately 50% incrementally to sales, with expectations of higher performance compared to Uber Eats [30][31] Question: Performance of the stuffed crust pizza - The stuffed crust pizza has received positive customer feedback, and while it did not significantly impact Q1, it is expected to drive future sales [34][35] Question: Domestic unit growth guidance - The company maintains its guidance of adding 175 net stores in 2025, with franchisee enthusiasm remaining strong [55][56] Question: Carryout customer performance - The carryout business experienced a slight deceleration, attributed to timing and calendar shifts rather than a decline in customer interest [101][102] Question: International unit growth outlook - Management expressed optimism about international unit growth reacceleration, particularly as closures from Domino's Pizza Enterprises are mostly behind [93][96]

Core Insights - Domino's customers are increasingly opting for carryout instead of delivery to save money, reflecting a broader trend of seeking value in food orders [1][3] - The company's delivery comparable sales fell by 1.5% in the first quarter, while carryout sales rose by 1% [2] - Overall comparable sales for Domino's decreased by 0.5%, which was slightly below expectations [2] Financial Performance - In the quarter ended March 24, Domino's delivery comparable sales declined by 1.5%, while carryout comparable sales increased by 1% [2] - The overall comparable sales for the quarter fell by 0.5%, which was noted as slightly below expectations by the CFO [2] Market Trends - Customers are increasingly concerned about inflation and potential price increases due to US tariffs, leading to a greater focus on value [3] - The delivery business is being impacted by macroeconomic pressures affecting low-income consumers [3] Future Outlook - Despite current challenges, Domino's expects a 3% rise in comparable sales in the US for the entirety of 2025, although macro pressures could hinder this goal [4] - The company is continuing to invest in delivery services, including a new partnership with DoorDash and ongoing collaboration with Uber Eats [6]

Market Overview - The stock market began positively on Monday but experienced a decline due to increasing tariff risks [1] - As of noon ET, the market is slightly down as investors are becoming more cautious about the impact of tariffs [1] Company Performance - Earnings from Domino's (DPZ) have contributed to the market's downturn, indicating a pullback in consumer spending on pizza [1] - Domino's stock is down by 0.92% [1]

View all Key Company Metrics for Domino's Pizza here>>> While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps inve ...

Domino's Pizza, Inc. (DPZ) reported first-quarter fiscal 2025 results. Its earnings beat the Zacks Consensus Estimate, while revenues missed the same. Nonetheless, the top and bottom lines increased from the prior-year quarter’s reported numbers.Following the announcement, the company’s shares lost 4% in today’s pre-market trading session.Moreover, the company reported benefits from the Hungry for MORE strategy during the quarter, registering growth in market share across the U.S. and international segments ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Domino's Pizza (DPZ) came out with quarterly earnings of $4.33 per share, beating the Zacks Consensus Estimate of $4.12 per share. This compares to earnings of $3.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.10%. A quarter ago, it was expected that this pizza chain would post earnings of $4.93 per share when it actually produced earnings of $4.89, delivering a surprise of -0.81%. There are no easy answers to this key ...

Retail Sales Performance - Global retail sales for the first quarter of 2025 reached $4,464.3 million, a 2.3% increase compared to $4,364.1 million in the first quarter of 2024[74]. - U.S. retail sales increased by 1.3% to $2,240.8 million, while international retail sales, excluding foreign currency impact, grew by 8.2% to $2,223.5 million[76][77]. - Same store sales in U.S. stores declined by 0.5%, while international same store sales, excluding foreign currency impact, increased by 3.7%[79]. Store Count and Operations - The total number of stores decreased by 8, with 17 net store openings in the U.S. and 25 net store closures internationally[77]. - The company aims to expand its store count and enhance profitability through its "Hungry for MORE" strategy, focusing on sales growth and operational excellence[70][68]. - The franchise model continues to provide strong returns, with approximately 99% of global stores operated by independent franchisees[64]. Financial Performance - Total revenues for the first quarter of 2025 were $1,112.1 million, a 2.5% increase from $1,084.6 million in the first quarter of 2024[84]. - Income from operations decreased by 0.2% to $210.1 million in the first quarter of 2025 compared to $210.4 million in the first quarter of 2024[82]. - Net income for the first quarter of 2025 was $149.7 million, representing a 19.0% increase from $125.8 million in the first quarter of 2024[82]. Revenue Streams - Supply chain revenues increased by 1.1% to $669.9 million, driven by a 4.8% increase in food basket pricing[84]. - U.S. company-owned store revenues decreased by $1.0 million, or 1.1%, in Q1 2025, with same store sales declining by 2.9%[86]. - U.S. franchise royalties and fees revenues increased by $0.5 million, or 0.3%, in Q1 2025, with same store sales declining by 0.4%[87]. - U.S. franchise advertising revenues increased by $13.7 million, or 12.4%, in Q1 2025, due to a return to the standard advertising contribution rate[88]. - International franchise royalties and fees revenues increased by $3.6 million, or 5.0%, in Q1 2025, despite a $3.2 million negative impact from foreign currency exchange rates[90]. Margins and Expenses - Consolidated gross margin increased by $21.2 million, or 5.0%, in Q1 2025, with gross margin percentage rising to 39.8%[93][94]. - U.S. company-owned store gross margin decreased by $1.5 million, or 9.3%, in Q1 2025, with gross margin percentage declining to 16.0%[95]. - General and administrative expenses increased by $8.1 million, or 8.0%, in Q1 2025, primarily due to severance expenses[99]. Tax and Debt - Provision for income taxes increased by $19.0 million, or 80.1%, in Q1 2025, with the effective tax rate rising to 22.3%[103]. - As of March 23, 2025, the company had approximately $4.98 billion in long-term debt, with $1.15 billion classified as a current liability[116]. - The company expects to refinance the 2018 7.5-Year Notes and 2015 Ten-Year Notes prior to their anticipated repayment date in October 2025[117]. Shareholder Returns - The company repurchased and retired 115,280 shares of common stock for approximately $50.0 million in Q1 2025, with a remaining authorized amount for share repurchases of approximately $764.3 million[120]. - A quarterly dividend of $1.74 per share was declared on February 19, 2025, with approximately $61.4 million accrued for common stock dividends as of March 23, 2025[121]. Cash Flow - Net cash provided by operating activities increased by $55.6 million in Q1 2025 compared to Q1 2024, totaling $179.1 million[123]. - Cash used in investing activities was $16.0 million in Q1 2025, primarily for capital expenditures of $14.7 million[125]. - Cash used in financing activities was $51.9 million in Q1 2025, including $50.0 million for common stock repurchase and $8.2 million for tax payments related to restricted stock[126]. Currency Risks - Approximately 6.8% of total revenues in Q1 2025 were derived from international franchise operations, which are subject to foreign currency exchange risks[134]. - A hypothetical 10% adverse change in foreign currency rates could have resulted in a negative impact on royalty revenues of approximately $7.4 million in Q1 2025[134]. - The company had a Holdco Leverage Ratio of less than 5.0x as of the end of Q1 2025, allowing for the classification of certain notes as long-term debt[116].

Financial Performance - Total revenues for Q1 2025 were $1,112.1 million, a 2.5% increase from $1,084.6 million in Q1 2024[5]. - Net income rose by $23.8 million, or 18.9%, in Q1 2025, driven by a favorable change in pre-tax unrealized gains and losses[8]. - Diluted earnings per share increased to $4.33 in Q1 2025, up 21.0% from $3.58 in Q1 2024[8]. - Net income for the first quarter of 2025 was $149,651,000, compared to $125,824,000 in the same quarter of 2024, reflecting a year-over-year increase of 19.0%[26]. - Consolidated Adjusted EBITDA for the trailing four quarters was $1,010,933,000, up from $977,348,000 in the previous year, indicating a growth of 3.4%[19]. - The gross margin for the first quarter of 2025 was 39.8%, up from 38.9% in the same quarter of 2024[26]. Cash Flow and Assets - Free cash flow for Q1 2025 was $164.4 million, a 59.1% increase compared to $103.3 million in Q1 2024[8]. - Cash and cash equivalents increased to $304,320,000 as of March 23, 2025, from $186,126,000 at the end of December 2024[28]. - Total assets grew to $1,877,619,000 as of March 23, 2025, compared to $1,737,013,000 at the end of December 2024[28]. - Net cash provided by operating activities increased to $179,076,000, up from $123,464,000, reflecting a growth of approximately 45%[30]. - The total cash and cash equivalents, including restricted cash, at the end of the period was $573,934,000, up from $469,645,000, reflecting an increase of approximately 22%[30]. Store Operations - The company experienced a net store decline of 8, with 17 net openings in the U.S. and 25 closures internationally[1]. - The company operates over 21,300 stores globally, with 99% being independent franchise owners[21]. Dividends and Shareholder Returns - The company declared a quarterly dividend of $1.74 per share, payable on June 30, 2025[6]. - The company repurchased $50,000,000 in common stock during the quarter, compared to $25,000,000 in the previous year, representing a 100% increase[30]. Leverage and Financial Ratios - The leverage ratio improved to 4.9x in Q1 2025 from 5.0x in Q1 2024[5]. - The leverage ratio as of March 23, 2025, was 4.9x, slightly improved from 5.0x in the previous year[19]. Sales Performance - Global retail sales increased by $100.2 million, or 4.7%, in Q1 2025 compared to Q1 2024, with U.S. stores growing by 1.3% and international stores by 8.2%[4]. - U.S. same store sales declined by 0.5% in Q1 2025, while international same store sales grew by 3.7% excluding foreign currency impact[4]. - Global retail sales exceeded $19.2 billion in the trailing four quarters ended March 23, 2025[21]. - U.S. franchise royalties and fees for the first quarter of 2025 were $151,000,000, compared to $150,518,000 in the first quarter of 2024, showing a marginal increase[26]. Operating Performance - Income from operations decreased by 0.2% to $210.1 million in Q1 2025, but increased by 1.4% when excluding foreign currency impacts[5]. - The company experienced a net unrealized gain on investments of $24,027,000, compared to a loss of $18,699,000 in the previous year[30]. - Changes in operating assets and liabilities contributed positively with an increase of $34,244,000, compared to a decrease of $9,961,000 in the prior year[30]. - Capital expenditures decreased to $14,745,000 from $20,181,000, indicating a reduction of about 27%[30]. - The company reported a loss on the sale/disposal of assets amounting to $266,000, compared to $90,000 in the previous year[30].