PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q2 2025 financial statements show total assets increased to $1.81 billion and YTD net income rose to $280.7 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 15, 2025, total assets increased to **$1.81 billion**, while total liabilities rose to **$5.79 billion**, widening the stockholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 15, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,007,558 | $905,278 | | **Total assets** | **$1,811,293** | **$1,737,013** | | **Total current liabilities** | $1,688,181 | $1,612,462 | | **Total liabilities** | $5,785,920 | $5,699,304 | | **Total stockholders' deficit** | **($3,974,627)** | **($3,962,291)** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 total revenues increased to $1.15 billion, with YTD net income rising to $280.7 million and diluted EPS to $8.14 Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,145,144 | $1,097,736 | $2,257,200 | $2,182,383 | | **Income from Operations** | $225,044 | $196,103 | $435,139 | $406,516 | | **Net Income** | $131,091 | $141,978 | $280,742 | $267,802 | | **Diluted EPS** | $3.81 | $4.03 | $8.14 | $7.61 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) YTD 2025 net cash from operating activities significantly increased to $366.9 million, while financing activities used $261.3 million Cash Flow Summary (in thousands) | Activity | Two Fiscal Quarters Ended June 15, 2025 | Two Fiscal Quarters Ended June 16, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $366,860 | $274,150 | | **Net cash provided by (used in) investing activities** | $14,795 | ($44,960) | | **Net cash used in financing activities** | ($261,312) | ($70,657) | - The increase in cash from financing activities was primarily due to a significant increase in purchases of common stock, which rose to **$203.0 million** from **$25.0 million** in the prior-year period[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment income, refranchising gains, DPC Dash investment sale, and a declared quarterly dividend of $1.74 per share Segment Income (YTD 2025 vs YTD 2024, in thousands) | Segment | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | U.S. Stores | $265,801 | $265,590 | | Supply Chain | $147,031 | $129,563 | | International Franchise | $129,343 | $118,429 | | **Total Segment Income** | **$542,175** | **$513,582** | - In Q2 2025, the company refranchised 36 U.S. Company-owned stores in Maryland for $8.5 million, recognizing a pre-tax gain of **$3.9 million**[54](index=54&type=chunk) - The company sold 4,200,000 ordinary shares of its investment in DPC Dash (China master franchisee) in Q2 2025 for net proceeds of **$44.1 million**[39](index=39&type=chunk) - Subsequent to the quarter end, on July 15, 2025, the Board of Directors declared a **$1.74 per share** quarterly dividend[34](index=34&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Operations) Q2 2025 global retail sales grew 5.6%, consolidated revenues rose 4.3% to $1.15 billion, and operating income increased 14.8% [Overview and Strategy](index=18&type=section&id=MD%26A_Overview) Domino's, with over 21,500 locations, primarily operates as a franchisor, guided by its 'Hungry for MORE' growth strategy - As of June 15, 2025, Domino's has **over 21,500 locations** in over 90 markets, with **approximately 99%** being franchisee-owned[66](index=66&type=chunk)[67](index=67&type=chunk) - The 'Hungry for MORE' strategy is built on four pillars: Most Delicious Food, Operational Excellence, Renowned Value, and Enhanced by Best-in-Class Franchisees[71](index=71&type=chunk)[72](index=72&type=chunk) [Performance and Statistical Measures](index=19&type=section&id=MD%26A_Statistical_Measures) Q2 2025 global retail sales grew 5.6% (ex-currency), with U.S. same-store sales up 3.4% and 178 net new stores added globally Global Retail Sales Growth (Excluding Foreign Currency) | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | U.S. stores | +5.1% | +6.8% | | International stores | +6.0% | +7.7% | | **Total** | **+5.6%** | **+7.2%** | Same Store Sales Growth | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | U.S. stores | +3.4% | +4.8% | | International stores (ex-currency) | +2.4% | +2.1% | - The company added a net of **178 stores** in Q2 2025, comprising **30 net new stores** in the U.S. and **148 internationally**[85](index=85&type=chunk) [Results of Operations](index=21&type=section&id=MD%26A_Results_of_Operations) Q2 2025 consolidated revenues increased 4.3% to $1.15 billion, driven by supply chain and franchise royalties, despite a DPC Dash investment loss - Consolidated revenues increased **$47.4 million** (**4.3%**) in Q2 2025, primarily due to higher supply chain revenues and U.S. franchise royalties and fees[88](index=88&type=chunk) - Supply chain revenues increased by **$27.8 million** (**4.2%**) in Q2 2025, driven by a **4.8%** increase in food basket pricing and higher order volumes[95](index=95&type=chunk) - Consolidated gross margin percentage increased by **0.5 points** to **40.3%** in Q2 2025, helped by higher franchise revenues which have no cost of sales component[99](index=99&type=chunk) - General and administrative expenses decreased by **$8.3 million** (**7.2%**) in Q2 2025, primarily because the 2024 Worldwide Rally did not reoccur in 2025[103](index=103&type=chunk) - The company recorded a **$16.0 million** pre-tax loss on its investment in DPC Dash in Q2 2025, compared to an **$11.4 million** gain in Q2 2024[109](index=109&type=chunk) [Segment Income](index=27&type=section&id=MD%26A_Segment_Income) All segments reported income growth in Q2 2025, with U.S. stores up 3.5%, supply chain up 14.2%, and international franchise up 11.0% Segment Income (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | U.S. stores | $134.0 | $129.5 | +3.5% | | Supply chain | $74.2 | $65.0 | +14.2% | | International franchise | $65.6 | $59.1 | +11.0% | [Liquidity and Capital Resources](index=28&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company maintains strong liquidity with $272.9 million in cash and expects to refinance $1.14 billion of current long-term debt - Primary liquidity sources are cash from operations and two variable funding note facilities totaling **$320.0 million** in capacity[121](index=121&type=chunk) - As of June 15, 2025, the company had **$263.6 million** of available borrowing capacity under its variable funding notes[121](index=121&type=chunk) - The company repurchased **$200.0 million** of its common stock in the first two quarters of 2025, with **$614.3 million** remaining under the current authorization[130](index=130&type=chunk) - Approximately **$1.14 billion** of long-term debt is classified as current, related to notes with an anticipated repayment date of October 2025, which the company expects to refinance[126](index=126&type=chunk)[127](index=127&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on variable funding notes, commodity price volatility, and foreign currency exchange risk impacting international revenues - The company faces interest rate risk on its variable funding notes and expects to refinance **$1.14 billion** of maturing debt at higher interest rates[140](index=140&type=chunk)[141](index=141&type=chunk) - The company is exposed to volatility in food costs, especially commodity prices for products like cheese[142](index=142&type=chunk) - A hypothetical **10%** adverse change in foreign currency rates would have reduced royalty revenues by an estimated **$13.4 million** in the first two fiscal quarters of 2025[143](index=143&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of **June 15, 2025**[144](index=144&type=chunk) - No material changes were made to the Company's internal control over financial reporting during the second quarter of 2025[145](index=145&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation, which management does not expect to materially adversely affect its financial condition - The company is involved in ordinary course litigation but does not expect it to have a material adverse effect on its business or financial condition[146](index=146&type=chunk)[147](index=147&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K - No material changes to risk factors were reported since the 2024 Form 10-K[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 315,696 shares for $150.0 million, with $614.3 million remaining for future repurchases Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Period 4 (Mar 24 - Apr 20) | 1,205 | $458.23 | — | | Period 5 (Apr 21 - May 18) | 112,070 | $480.42 | 110,977 | | Period 6 (May 19 - Jun 15) | 206,250 | $472.23 | 204,719 | | **Total** | **319,525** | **$475.05** | **315,696** | - As of June 15, 2025, **$614.3 million** remained available for future share repurchases under the authorized program[151](index=151&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) Three executive officers adopted new Rule 10b5-1 trading plans for future stock sales during Q2 2025 - Three Section 16 officers adopted Rule 10b5-1 trading arrangements during the quarter: **Joseph H. Jordan (COO)**, **Sandeep Reddy (CFO)**, and **Kelly E. Garcia (CTDO)**[157](index=157&type=chunk)[159](index=159&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) The report lists various exhibits filed, including corporate governance documents and CEO/CFO certifications - Filed exhibits include CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and corporate governance documents[160](index=160&type=chunk)

Exhibit 99.1 For Immediate Release Contact: Greg Lemenchick Vice President - Investor Relations investorrelations@dominos.com Domino's Pizza® Announces Second Quarter 2025 Financial Results Global retail sales growth (excluding foreign currency impact) of 5.6% U.S. same store sales growth of 3.4% International same store sales growth (excluding foreign currency impact) of 2.4% Global net store growth of 178, including 30 net store openings in the U.S. and 148 net store openings internationally Income from o ...

Core Insights - Domino's Pizza, Inc. reported a global retail sales growth of 5.6% in Q2 2025, with U.S. same-store sales growth at 3.4% and international same-store sales growth at 2.4% [1][4] - The company achieved a net store growth of 178, with 30 openings in the U.S. and 148 internationally [1][4] - Income from operations increased by 14.8%, reaching $225 million, while net income decreased by 7.7% to $131 million due to unfavorable changes in investment valuations and higher tax provisions [1][15] Financial Performance - Total revenues for Q2 2025 were $1.145 billion, a 4.3% increase from Q2 2024, driven by higher supply chain revenues and U.S. franchise royalties [4][15] - U.S. Company-owned store gross margin decreased by 2.0 percentage points to 15.6%, while supply chain gross margin increased by 0.5 percentage points to 11.8% [15] - Diluted earnings per share (EPS) fell to $3.81, a decrease of 5.5% compared to the previous year [15][25] Operational Highlights - The company had a total of 21,536 stores globally as of June 15, 2025, with 7,061 in the U.S. and 14,475 internationally [4][21] - The food basket pricing increased by 4.8% compared to the same quarter last year, impacting revenue and cost of sales [5][15] - The company declared a quarterly dividend of $1.74 per share, payable on September 30, 2025 [6] Shareholder Returns - In Q2 2025, the company repurchased 315,696 shares for $150 million, with a total of 430,976 shares repurchased for $200 million in the first two fiscal quarters [7] - As of June 15, 2025, the remaining authorized amount for share repurchases was $614.3 million [7] Market Position - Domino's continues to leverage its strong market position with a significant advertising budget and a robust supply chain, aiming for long-term value creation for franchisees and shareholders [2][21] - The company has fully rolled out on the two largest aggregators and offers all major crust types, enhancing its competitive edge in the pizza QSR category [2]

Core Viewpoint - Investors are increasingly interested in stable income streams, making Domino's Pizza's upcoming earnings report and dividend offerings particularly noteworthy [1] Earnings Report Expectations - Domino's Pizza is expected to report quarterly earnings of $3.96 per share, a decrease from $4.03 per share in the same period last year [2] - Projected quarterly revenue is $1.14 billion, up from $1.1 billion a year earlier [2] - Morgan Stanley analyst Brian Harbour has maintained an Overweight rating for Domino's Pizza and raised the price target from $510 to $514 [2] Dividend Insights - Domino's currently offers an annual dividend yield of 1.48%, translating to a quarterly dividend of $1.74 per share, or $6.96 annually [3] - To achieve a monthly dividend income of $500, an investor would need to own approximately 862 shares, equating to a total investment of about $404,019 [4] - For a more conservative monthly income goal of $100, an investor would need 172 shares, requiring an investment of around $80,616 [4] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which can fluctuate based on stock price changes [5] - For example, if the annual dividend is $2 and the stock price is $50, the yield is 4%. If the stock price rises to $60, the yield drops to 3.33% [5] - Conversely, if the stock price falls to $40, the yield increases to 5% [5] Dividend Payment Variability - The dividend payment can change over time, affecting the dividend yield. An increase in dividend payment raises the yield if the stock price remains constant, while a decrease lowers it [6] - Domino's Pizza shares rose by 0.7% to close at $468.70 on Thursday [6]

Core Insights - Domino's Pizza, Inc. (DPZ) is set to report its second-quarter 2025 results on July 21, with earnings expected to be $3.93 per share, reflecting a 2.5% decrease from the previous year [1][2][8] - The company has a history of beating earnings estimates, with an average surprise of 6.5% over the last four quarters [1] Q2 Estimates - The Zacks Consensus Estimate for revenues is $1.14 billion, indicating a 4% growth year-over-year [2] - Earnings estimates have been revised downward by 0.3% in the past 30 days [2] Factors Influencing Performance - Expansion efforts, digitalization, and menu innovation are expected to positively impact second-quarter results [2] - The launch of Parmesan Stuffed Crust Pizza is anticipated to enhance customer satisfaction and order sizes [2] - Increased revenues from the supply chain due to higher order volumes and food basket pricing are likely to support top-line growth [3] Partnerships and Customer Engagement - The partnership with DoorDash, launched in May 2025, is expected to significantly boost pizza sales, potentially doubling the size of Uber Eats in this segment [3] - The Domino's Rewards program has been crucial in enhancing U.S. performance and customer retention [4] Revenue Projections - U.S. store revenues are projected to grow 4.9% to $382.7 million, while supply-chain revenues are expected to rise 3.1% to $680 million [5] - Comparable store sales (comps) for U.S. company-owned and franchise stores are predicted to grow 5.5% and 6.8%, respectively [4] Challenges - Despite new initiatives, the company may face challenges from weak traffic, particularly among lower-income consumers, which could impact delivery business [5] - Inflationary pressures in commodity and labor costs, along with macroeconomic challenges, are likely to negatively affect the bottom line [6] Earnings Prediction - The model predicts an earnings beat for Domino's, supported by a positive Earnings ESP and a Zacks Rank of 3 [7][9]

Wall Street expects a year-over-year decline in earnings on higher revenues when Domino's Pizza (DPZ) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 21, might help the stock move higher if these key numbers are better than expectations ...

Core Viewpoint - Domino's Pizza is launching new summer products, including the Toscana Creamy Salmon Pizza and a series of 12 durian pizzas, enhancing the summer dining experience with unique flavors and promotions [1][5][6]. Product Launch - The Toscana Creamy Salmon Pizza features fresh salmon paired with creamy spinach, inspired by traditional Italian cuisine, and includes a rich flavor profile with a combination of sauces [5]. - The durian pizza series includes three types: Sudan King Durian, Cat Mountain King Durian, and Fruit Durian, each offering a unique taste experience with the combination of durian and lychee [1][5]. Promotional Activities - Domino's Pizza is collaborating with the popular IP Snoopy to offer limited edition keychain blind boxes, available for an additional cost with any online order [2][6]. - The promotion includes six different designs of Snoopy keychains, aimed at attracting both pizza lovers and collectors [8][9]. Market Presence - As of Q1 2025, Domino's Pizza operates over 21,000 restaurants in more than 90 countries, with nearly 1,200 stores in mainland China [9]. - The company emphasizes quality ingredients and efficient delivery services, promising a 30-minute delivery guarantee in most cities [9].

Group 1 - Domino's Pizza Inc. has reintroduced its "Best Deal Ever" promotion, allowing customers to order any pizza with any toppings for $9.99 each from July 7 to August 3, 2025 [1][2] - The promotion includes various crust options such as Hand Tossed, Handmade Pan, New York Style, Gluten Free, and Crunchy Thin Crust, along with a variety of sauces and toppings [1][2] - Domino's executive vice president and chief marketing officer, Kate Trumbull, highlighted the popularity of the deal, noting that customers enjoy experimenting with different crusts, sauces, and toppings, with over 34 million possible combinations for a single pizza [3] Group 2 - The promotion features secret menu pizzas recommended by Domino's pizza chefs, which customers can build for the same $9.99 price [4] - Domino's Pizza, founded in 1960, is the largest pizza company globally, operating over 21,300 stores in more than 90 markets, with global retail sales exceeding $19.2 billion in the trailing four quarters ended March 23, 2025 [5] - In the U.S., Domino's generated over 85% of its retail sales in 2024 through digital channels, showcasing its innovative ordering platforms [5]

Core Viewpoint - Domino's Pizza is experiencing a downtrend in stock price, which may not be reflective of negative business fundamentals, especially following the unexpected departure of its CEO [2][3][4]. Group 1: Company Leadership and Stability - The CEO's departure is not expected to significantly impact Domino's Pizza, as the company has established a strong market presence and brand recognition over the years [4][5]. - Domino's Pizza is in an ex-growth phase typical for mature companies, suggesting that leadership changes are more formal than essential [4][5]. Group 2: Market Position and Competition - Domino's Pizza holds a significant market capitalization of nearly $16 billion, dwarfing its closest competitor, Papa John's, which has a market cap of approximately $1.6 billion [7]. - This size advantage allows Domino's to better navigate challenges such as cost inflation and trade dynamics [8]. Group 3: Financial Performance and Forecast - Analysts project a 12-month stock price forecast for Domino's Pizza at $487.17, indicating a potential upside of 6.83% from the current price of $456.00 [9]. - The company boasts a net income margin of up to 14% and a gross margin of 28.4%, suggesting stable financial performance [9]. - Earnings per share (EPS) are expected to grow to $5.62 by Q4 2025, reflecting a 30% increase from the current EPS of $4.33 [10][11]. Group 4: Analyst Sentiment - Analysts maintain a Moderate Buy rating for Domino's Pizza, with some projecting a price target of $550 per share, indicating a potential 22% upside [13][14]. - Institutional investors, such as Marshfield Associates, have shown confidence by increasing their stake in the company, further supporting the stock's potential recovery [12].

Group 1 - Domino's Pizza, Inc. has elected Stephen H. Kramer to its Board of Directors, enhancing its leadership team [1][2] - David Brandon, Executive Chairman of Domino's, expressed confidence in Kramer's ability to provide valuable insights and contribute to the company's "Hungry for MORE" strategy [2] - Kramer has extensive experience, currently serving as President and CEO of Bright Horizons Family Solutions Inc. since 2018, and has a background in venture capital and consulting [2][3] Group 2 - Domino's Pizza is the largest pizza company globally, with over 21,300 stores in more than 90 markets [3] - The company reported global retail sales exceeding $19.2 billion for the four quarters ending March 23, 2025, with 99% of its stores operated by independent franchise owners [3] - In the U.S., over 85% of retail sales in 2024 were generated through digital channels, showcasing the company's innovative ordering platforms [3]