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, ...

Core Viewpoint - Domino's Pizza reported quarterly earnings of $4.33 per share, exceeding the Zacks Consensus Estimate of $4.12 per share, and showing an increase from $3.58 per share a year ago, representing an earnings surprise of 5.10% [1][2] Financial Performance - The company posted revenues of $1.11 billion for the quarter ended March 2025, which was 0.79% below the Zacks Consensus Estimate, and an increase from $1.08 billion year-over-year [2] - Over the last four quarters, Domino's has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Performance - Domino's shares have increased by approximately 16.2% since the beginning of the year, contrasting with a decline of 6.1% in the S&P 500 [3] - The current Zacks Rank for Domino's is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.94 on revenues of $1.14 billion, and for the current fiscal year, it is $17.56 on revenues of $4.95 billion [7] - The trend of estimate revisions for Domino's is mixed, which could change following the recent earnings report [6] Industry Context - The Retail - Restaurants industry, to which Domino's belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, suggesting potential challenges ahead [8]

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].

Core Insights - Domino's Pizza reported a global retail sales growth of 4.7% in Q1 2025, with U.S. same-store sales declining by 0.5% and international same-store sales growing by 3.7% [1][4] - The company's operational income decreased by 0.2%, but increased by 1.4% when excluding the negative impact of foreign currency exchange rates [1][5] - The CEO emphasized the effectiveness of the "Hungry for MORE" strategy in driving market share growth despite a challenging macroeconomic environment [2] 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][30] - Net income rose to $149.7 million, an increase of 18.9% compared to $125.8 million in the same quarter of the previous year [5][30] - Diluted earnings per share increased to $4.33, up 20.9% from $3.58 in Q1 2024 [5][12] Store Operations - The company experienced a net store decline of 8, with 17 net openings in the U.S. and 25 closures internationally [1][5] - As of March 23, 2025, the total store count was 21,358, reflecting ongoing adjustments in the store portfolio [5][29] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased to $179.1 million from $123.5 million year-over-year [5][32] - Capital expenditures decreased to $14.7 million from $20.2 million in the previous year, contributing to a free cash flow of $164.4 million, up from $103.3 million [5][12] Strategic Initiatives - The company continues to focus on enhancing its digital ordering platforms, which accounted for over 85% of U.S. retail sales in 2024 [23] - The board declared a quarterly dividend of $1.74 per share, payable on June 30, 2025, to shareholders of record as of June 13, 2025 [7]

Group 1: Market Reaction to Tariffs - President Trump's "Liberation Day" tariffs included a 10% tax on most imported goods and reciprocal tariffs, leading to a 12% decline in the S&P 500 over the next five trading days, with the index falling 19% from its February record high [1] Group 2: Berkshire Hathaway's Investment Decisions - Berkshire Hathaway sold its entire stake in two S&P 500 index funds during the fourth quarter, which appears contradictory to Warren Buffett's previous advice to invest in the S&P 500 [4][5] - The decision to sell was driven by Buffett's goal to outperform the S&P 500, as he aims to increase per-share intrinsic value at a rate greater than the index's growth [4] - Berkshire's investment in the Vanguard S&P 500 ETF and SPDR S&P 500 ETF Trust was less than 0.02% of its portfolio, indicating the sale was not a lack of confidence in U.S. stocks [5] Group 3: Domino's Pizza Overview - Domino's is the largest pizza company globally, leveraging innovation such as AnyWare technology for ordering and Pinpoint Delivery for nontraditional delivery locations [9] - The company utilizes artificial intelligence to enhance customer experience by anticipating orders and ensuring quality through visual inspections [10] Group 4: Domino's Financial Performance and Strategy - In 2023, Domino's announced its "Hungry for More" strategy, aiming to open at least 1,100 stores annually through 2028, with sales and operating income growth targets of 7% and 8% respectively [11] - Despite a 3% revenue increase to $1.4 billion and a 9% rise in GAAP net income to $4.89 per diluted share, Domino's missed financial estimates in the fourth quarter [12] - Domino's gained market share in quick-service pizza, outperforming competitors like Papa John's and Pizza Hut in same-store sales growth [12] Group 5: Future Earnings and Valuation - Wall Street estimates that Domino's earnings will grow by 8% annually over the next two years, aligning with its performance goals [13] - The current valuation of Domino's at 29 times earnings is considered expensive, prompting a recommendation to wait for a better entry point before investing [13]