Domino’s Pizza (NYSE:DPZ) Q3 2025 Earnings Call October 14, 2025 08:30 AM ET Speaker0Good day and thank you for standing by. Welcome to the third quarter 2025 Domino's Pizza Inc. Earnings Conference Call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised to draw your qu ...

Domino’s Pizza Inc (NASDAQ:DPZ) shares are trading higher in the premarket session on Tuesday.The company reported third-quarter earnings per share of $4.08, beating the analyst consensus estimate of $3.96. Quarterly sales of $1.147 billion (+6.2% year over year) outpaced the Street view of $1.137 billion.Sales grew on the back of higher supply chain revenues and higher U.S. franchise royalties and fees and advertising revenues.Also Read: Stock Market Today: S&P 500, Nasdaq Futures Tumble Ahead Of Big Bank ...

Domino's Pizza (DPZ) came out with quarterly earnings of $4.08 per share, beating the Zacks Consensus Estimate of $3.96 per share. This compares to earnings of $4.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.03%. A quarter ago, it was expected that this pizza chain would post earnings of $3.93 per share when it actually produced earnings of $3.81, delivering a surprise of -3.05%.Over the last four quarters, the compan ...

The pizza chain's U.S. same-store sales growth accelerates to the highest rate since early 2024. ...

达美乐比萨(DPZ.US)盘前直线拉升，一度涨超2%。消息面上，达美乐披萨第三季度营收11.5亿美元， 同比增长6.2%，市场预期为11.4亿美元；全美国门店同店销售增长5.2%，市场预期为增长4.28%； EPS4.08美元，去年同期为4.19美元；净新增门店数214家，环比增长20%，市场预期为214.8家。(格隆 汇) ...

格隆汇10月14日｜达美乐比萨第三季度营收11.5亿美元，预估11.4亿美元。 ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the reported periods [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements and notes, covering financial position, performance, and cash flows [Condensed Consolidated Balance Sheets (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 7, 2025 | Dec 29, 2024 | Change | Change (%) | | :-------------------------------- | :---------- | :----------- | :------- | :--------- | | Total Assets | $1,660,277 | $1,737,013 | $(76,736) | -4.4% | | Current portion of long-term debt | $5,521 | $1,149,679 | $(1,144,158) | -99.5% | | Long-term debt, less current portion | $4,810,274 | $3,825,659 | $984,615 | +25.7% | | Total Liabilities | $5,622,236 | $5,699,304 | $(77,068) | -1.4% | | Total Stockholders' Deficit | $(3,961,959) | $(3,962,291) | $332 | +0.0% | [Condensed Consolidated Statements of Income (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Unaudited)) Details the company's revenues, expenses, and net income over specific fiscal periods Condensed Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | Fiscal Quarter Ended Sep 7, 2025 | Fiscal Quarter Ended Sep 8, 2024 | Change (%) | Three Fiscal Quarters Ended Sep 7, 2025 | Three Fiscal Quarters Ended Sep 8, 2024 | Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Total Revenues | $1,147,054 | $1,080,119 | +6.2% | $3,404,254 | $3,262,502 | +4.3% | | Income from operations | $223,168 | $198,831 | +12.2% | $658,307 | $605,347 | +8.7% | | Net income | $139,319 | $146,924 | -5.2% | $420,061 | $414,726 | +1.3% | | Earnings per share - diluted | $4.08 | $4.19 | -2.6% | $12.22 | $11.80 | +3.6% | [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Presents net income and other comprehensive income components, reflecting total non-owner changes in equity Condensed Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | Fiscal Quarter Ended Sep 7, 2025 | Fiscal Quarter Ended Sep 8, 2024 | Change (%) | Three Fiscal Quarters Ended Sep 7, 2025 | Three Fiscal Quarters Ended Sep 8, 2024 | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Net income | $139,319 | $146,924 | -5.2% | $420,061 | $414,726 | +1.3% | | Currency translation adjustment | $(618) | $598 | -203.7% | $2,187 | $(1,010) | +316.5% | | Comprehensive income | $138,701 | $147,522 | -6.0% | $422,248 | $413,716 | +2.1% | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (Three Fiscal Quarters Ended, in thousands) | Metric | Sep 7, 2025 | Sep 8, 2024 | Change | Change (%) | | :--------------------------------------- | :---------- | :---------- | :------- | :--------- | | Net cash provided by operating activities | $552,256 | $446,879 | $105,377 | +23.6% | | Net cash used in investing activities | $(6,063) | $(71,895) | $65,832 | -91.6% | | Net cash used in financing activities | $(558,241) | $(312,998) | $(245,243) | +78.3% | | Change in cash and cash equivalents, restricted cash and cash equivalents | $(10,561) | $61,397 | $(71,958) | -117.2% | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Provides detailed explanations and additional information supporting the condensed consolidated financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information, not including all footnotes required for complete statements[17](index=17&type=chunk) - The company operates in three reportable segments: U.S. stores, supply chain, and international franchise, with performance evaluated based on Segment Income[19](index=19&type=chunk)[20](index=20&type=chunk) - Domino's completed a **$1.00 billion** asset-backed securitization on September 5, 2025, issuing new 2025 Five-Year and Seven-Year Notes to repay existing debt[45](index=45&type=chunk)[46](index=46&type=chunk) - The company adopted ASU 2023-07 (Segment Reporting) retrospectively in Q4 2024 and is evaluating ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation) for future impact[64](index=64&type=chunk)[66](index=66&type=chunk)[68](index=68&type=chunk) [1. Basis of Presentation](index=8&type=section&id=1.%20Basis%20of%20Presentation) Outlines the accounting principles and periods covered for the unaudited condensed consolidated financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States for interim financial information[17](index=17&type=chunk) - The 2025 and 2024 third quarters represent the twelve-week periods ended September 7, 2025, and September 8, 2024, respectively[18](index=18&type=chunk) - The 2025 and 2024 three fiscal quarters represent the thirty-six-week periods ended September 7, 2025, and September 8, 2024, respectively[18](index=18&type=chunk) [2. Segment Information](index=8&type=section&id=2.%20Segment%20Information) Details the company's reportable segments, performance evaluation metrics, and recent accounting standard adoption - The Company has three reportable segments: (i) U.S. stores; (ii) supply chain; and (iii) international franchise[19](index=19&type=chunk) - The Company's chief operating decision maker evaluates segment performance and allocates resources based on Segment Income (EBITDA and other)[20](index=20&type=chunk) - The Company adopted ASU 2023-07, Segment Reporting, in the fourth quarter of 2024, including relevant interim disclosures retrospectively[22](index=22&type=chunk) Segment Income (Three Fiscal Quarters Ended, in thousands) | Segment | Sep 7, 2025 | Sep 8, 2024 | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | | U.S. Stores | $402,112 | $394,167 | +2.0% | | Supply Chain | $217,193 | $190,736 | +13.9% | | International Franchise | $196,640 | $180,796 | +8.7% | | Total Segment Income | $815,945 | $765,699 | +6.6% | [3. Earnings Per Share](index=12&type=section&id=3.%20Earnings%20Per%20Share) Presents basic and diluted earnings per share, along with the weighted average number of shares outstanding Earnings Per Share (Three Fiscal Quarters Ended) | Metric | Sep 7, 2025 | Sep 8, 2024 | Change (%) | | :-------------------------- | :---------- | :---------- | :--------- | | Earnings per share – basic | $12.31 | $11.91 | +3.4% | | Earnings per share – diluted | $12.22 | $11.80 | +3.6% | | Basic weighted average number of shares | 34,122,385 | 34,835,394 | -2.1% | | Diluted weighted average number of shares | 34,366,396 | 35,145,732 | -2.2% | [4. Stockholders' Deficit](index=12&type=section&id=4.%20Stockholders'%20Deficit) Details changes in stockholders' deficit, including common stock, net income, dividends, and share repurchases Stockholders' Deficit Highlights (Three Fiscal Quarters Ended Sep 7, 2025) | Metric | Dec 29, 2024 | Sep 7, 2025 | | :-------------------------------- | :----------- | :---------- | | Common Stock Shares | 34,281,927 | 33,785,145 | | Net income | — | $420,061 | | Dividends declared on common stock and equivalents | — | $(178,441) | | Purchases of common stock | — | $(242,817) | | Balance at September 7, 2025 | $(3,962,291) | $(3,957,671) | - Subsequent to the end of Q3 2025, on October 7, 2025, the Board declared a **$1.74 per share** quarterly dividend[34](index=34&type=chunk) [5. Fair Value Measurements](index=14&type=section&id=5.%20Fair%20Value%20Measurements) Explains the classification of fair value measurements and details the valuation of investments and fixed rate notes - Fair value measurements are classified into Level 1 (quoted market prices), Level 2 (observable market-based inputs), and Level 3 (unobservable inputs)[37](index=37&type=chunk)[38](index=38&type=chunk) - The Company's investment in DPC Dash is accounted for as a trading security at fair value (Level 1)[40](index=40&type=chunk) - The Company sold **4,200,000** ordinary shares of DPC Dash in Q2 2025 for net proceeds of **$44.1 million**[40](index=40&type=chunk) - The fair values of the Company's fixed rate notes are classified as Level 2 measurements[43](index=43&type=chunk) [6. Refinancing](index=15&type=section&id=6.%20Refinancing) Details the $1.00 billion asset-backed securitization completed in September 2025, covering new debt issuance and repayment - On September 5, 2025, the Company completed a **$1.00 billion** refinancing transaction through an asset-backed securitization[45](index=45&type=chunk) - Issued **$500.0 million** Series 2025-1 **4.930%** Fixed Rate Senior Secured Notes (Five-Year) and **$500.0 million** Series 2025-1 **5.217%** Fixed Rate Senior Secured Notes (Seven-Year)[45](index=45&type=chunk) - Proceeds, along with **$160.0 million** cash, were used to repay **$742.0 million** of 2015 Ten-Year Notes and **$402.7 million** of 2018 7.5-Year Notes[46](index=46&type=chunk) - Established a new **$320.0 million** variable funding note facility (2025 Variable Funding Notes), replacing previous facilities, with **$263.6 million** available borrowing capacity as of September 7, 2025[49](index=49&type=chunk) [7. Revenue Disclosures](index=17&type=section&id=7.%20Revenue%20Disclosures) Provides details on deferred franchise and development fees, and advertising fund assets Deferred Franchise Fees and Development Fees (Three Fiscal Quarters Ended, in thousands) | Metric | Sep 7, 2025 | Sep 8, 2024 | | :------------------------------------------------ | :---------- | :---------- | | Beginning of period | $20,946 | $25,195 | | Revenue recognized during the period | $(4,316) | $(4,292) | | New deferrals due to cash received and other | $3,297 | $2,281 | | End of period | $19,927 | $23,184 | Advertising Fund Assets, Restricted (in thousands) | Metric | Sep 7, 2025 | Dec 29, 2024 | | :-------------------------------- | :---------- | :----------- | | Advertising fund assets, restricted | $135,826 | $103,396 | | Cash and cash equivalents | $109,634 | $80,928 | | Accounts receivable | $17,900 | $14,300 | | Prepaid expenses | $8,300 | $8,200 | [8. Leases](index=18&type=section&id=8.%20Leases) Details lease costs, uncommenced lease commitments, and maximum potential future payments under franchisee lease guarantees Lease Costs (Three Fiscal Quarters Ended, in thousands) | Metric | Sep 7, 2025 | Sep 8, 2024 | Change (%) | | :-------------------------- | :---------- | :---------- | :--------- | | Rent expense | $65,900 | $63,200 | +4.3% | | Operating lease cost | $36,213 | $34,260 | +5.7% | | Total finance lease cost | $6,308 | $6,849 | -7.8% | - The Company had additional uncommenced leases with estimated future minimum rental commitments of **$161.9 million**, expected to commence in 2025 and 2026[57](index=57&type=chunk) - Maximum potential future payments under franchisee lease guarantees were **$14.1 million** as of September 7, 2025[58](index=58&type=chunk) [9. Supplemental Disclosures of Cash Flow Information](index=18&type=section&id=9.%20Supplemental%20Disclosures%20of%20Cash%20Flow%20Information) Provides additional details on non-cash investing and financing activities - Non-cash investing activities related to accruals for capital expenditures were **$4.8 million** at September 7, 2025[59](index=59&type=chunk) - Non-cash financing activity related to accruals for excise taxes on share repurchases was **$2.5 million** as of September 7, 2025[59](index=59&type=chunk) [10. Company-owned Store Transactions](index=19&type=section&id=10.%20Company-owned%20Store%20Transactions) Details refranchising and purchasing activities of company-owned and franchised stores - During Q2 2025, the Company refranchised **36** U.S. Company-owned stores in Maryland for **$8.5 million**, resulting in a **$3.9 million** pre-tax refranchising gain[60](index=60&type=chunk) - During Q1 2025, the Company purchased **two** U.S. franchised stores for **$0.9 million**[61](index=61&type=chunk) - In Q1 and Q2 2024, the Company refranchised one U.S. Company-owned store each, resulting in approximately **$0.1 million** pre-tax refranchising losses each[62](index=62&type=chunk) [11. New Accounting Pronouncements](index=19&type=section&id=11.%20New%20Accounting%20Pronouncements) Discusses the adoption of new accounting standards and the evaluation of upcoming pronouncements - The Company adopted ASU 2023-07, Segment Reporting, in Q4 2024, applying it retrospectively[64](index=64&type=chunk)[65](index=65&type=chunk) - The Company is evaluating ASU 2023-09 (Income Taxes), effective for fiscal years beginning after December 15, 2024[66](index=66&type=chunk)[67](index=67&type=chunk) - The Company is evaluating ASU 2024-03 (Expense Disaggregation), effective for annual fiscal years beginning after December 15, 2026[68](index=68&type=chunk)[69](index=69&type=chunk) - The Company is evaluating ASU 2025-06 (Internal-Use Software), issued September 2025, effective for annual periods beginning after December 15, 2027[70](index=70&type=chunk)[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition and results of operations, including business overview, performance highlights, and financial analysis [Overview](index=21&type=section&id=Overview) Introduces Domino's as the largest global pizza company, highlighting its franchise model and 'Hungry for MORE' strategy - Domino's is the largest pizza company globally, with over **21,700** locations in more than **90** markets[73](index=73&type=chunk) - Approximately **99%** of Domino's global stores are owned and operated by independent franchisees[74](index=74&type=chunk) - The 'Hungry for MORE' strategy aims to generate MORE sales, MORE stores, and MORE profits through delicious food, operational excellence, renowned value, and best-in-class franchisees[78](index=78&type=chunk)[79](index=79&type=chunk) [Third Quarter of 2025 Highlights](index=22&type=section&id=Third%20Quarter%20of%202025%20Highlights) Summarizes key financial and operational achievements for the third fiscal quarter of 2025 - Global retail sales, excluding foreign currency impact, increased **6.3%** in Q3 2025 compared to Q3 2024[85](index=85&type=chunk) - U.S. retail sales increased **7.0%** and international retail sales (excluding foreign currency impact) increased **5.7%** in Q3 2025[85](index=85&type=chunk) - Income from operations increased **12.2%** in Q3 2025[85](index=85&type=chunk) [Three Fiscal Quarters of 2025 Highlights](index=22&type=section&id=Three%20Fiscal%20Quarters%20of%202025%20Highlights) Summarizes key financial and operational achievements for the first three fiscal quarters of 2025 - Global retail sales, excluding foreign currency impact, increased **5.5%** for the three fiscal quarters of 2025 compared to 2024[85](index=85&type=chunk) - U.S. retail sales increased **4.5%** and international retail sales (excluding foreign currency impact) increased **6.6%** for the three fiscal quarters of 2025[85](index=85&type=chunk) - Income from operations increased **8.7%** for the three fiscal quarters of 2025[85](index=85&type=chunk) [Statistical Measures](index=22&type=section&id=Statistical%20Measures) Presents key performance indicators including global retail sales, same store sales growth, and store growth activity - Global retail sales, same store sales growth, and net store growth are key statistical measures used to analyze performance[83](index=83&type=chunk)[88](index=88&type=chunk)[91](index=91&type=chunk) [Global Retail Sales](index=22&type=section&id=Global%20Retail%20Sales) Details retail sales performance across U.S. and international stores for the reported periods Global Retail Sales (in millions of U.S. dollars) | Segment | Third Quarter of 2025 | Third Quarter of 2024 | Change (%) | Three Fiscal Quarters of 2025 | Three Fiscal Quarters of 2024 | Change (%) | | :---------------- | :-------------------- | :-------------------- | :--------- | :---------------------------- | :---------------------------- | :--------- | | U.S. stores | $2,320.4 | $2,168.4 | +7.0% | $6,896.8 | $6,602.5 | +4.5% | | International stores | $2,375.8 | $2,223.6 | +6.8% | $6,933.5 | $6,581.9 | +5.3% | | Total | $4,696.2 | $4,392.0 | +6.9% | $13,830.3 | $13,184.4 | +4.9% | [Global Retail Sales Growth, Excluding Foreign Currency Impact](index=23&type=section&id=Global%20Retail%20Sales%20Growth,%20Excluding%20Foreign%20Currency%20Impact) Shows retail sales growth adjusted for foreign currency fluctuations across U.S. and international segments Global Retail Sales Growth, Excluding Foreign Currency Impact | Segment | Third Quarter of 2025 | Third Quarter of 2024 | Three Fiscal Quarters of 2025 | Three Fiscal Quarters of 2024 | | :------------------------------------------ | :-------------------- | :-------------------- | :---------------------------- | :---------------------------- | | U.S. stores | +7.0% | +5.1% | +4.5% | +6.6% | | International stores (excluding foreign currency impact) | +5.7% | +5.1% | +6.6% | +6.5% | | Total (excluding foreign currency impact) | +6.3% | +5.1% | +5.5% | +6.5% | [Same Store Sales Growth](index=23&type=section&id=Same%20Store%20Sales%20Growth) Reports comparable store sales growth for U.S. company-owned, U.S. franchise, and international stores Same Store Sales Growth | Segment | Third Quarter of 2025 | Third Quarter of 2024 | Three Fiscal Quarters of 2025 | Three Fiscal Quarters of 2024 | | :------------------------------------------ | :-------------------- | :-------------------- | :---------------------------- | :---------------------------- | | U.S. Company-owned stores | +3.4% | +3.1% | +1.0% | +5.4% | | U.S. franchise stores | +5.3% | +3.0% | +2.7% | +4.4% | | U.S. stores | +5.2% | +3.0% | +2.7% | +4.5% | | International stores (excluding foreign currency impact) | +1.7% | +0.8% | +2.5% | +1.1% | - Increase in U.S. same store sales in Q3 2025 was primarily due to higher customer transaction counts, driven in part by the 'Best Deal Ever' promotion[89](index=89&type=chunk) - Increases in international same store sales in both Q3 and three fiscal quarters of 2025 were driven by higher customer transaction counts[90](index=90&type=chunk) [Store Growth Activity](index=23&type=section&id=Store%20Growth%20Activity) Provides store count, openings, closings, and net store growth for U.S. and international segments Store Count and Net Store Growth | Metric | U.S. Company-owned Stores | U.S. Franchise Stores | Total U.S. Stores | International Stores | Total | | :-------------------------- | :------------------------ | :-------------------- | :------------------ | :------------------- | :---- | | Store count at June 15, 2025 | 258 | 6,803 | 7,061 | 14,475 | 21,536 | | Openings (Q3 2025) | 2 | 28 | 30 | 220 | 250 | | Closings (Q3 2025) | — | (1) | (1) | (35) | (36) | | Store count at Sep 7, 2025 | 260 | 6,830 | 7,090 | 14,660 | 21,750 | | Third quarter 2025 net store growth | 2 | 27 | 29 | 185 | 214 | | Trailing four quarters net store growth | 3 | 157 | 160 | 588 | 748 | [Income Statement Data](index=25&type=section&id=Income%20Statement%20Data) Analyzes key components of the income statement, including revenues, cost of sales, and operating expenses Income Statement Data Highlights (in millions) | Metric | Q3 2025 | Q3 2024 | Change (%) | 3FQ 2025 | 3FQ 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | :------- | :------- | :--------- | | Total revenues | $1,147.1 | $1,080.1 | +6.2% | $3,404.3 | $3,262.5 | +4.3% | | Gross margin | $459.9 | $423.7 | +8.5% | $1,364.0 | $1,282.6 | +6.3% | | Income from operations | $223.2 | $198.8 | +12.3% | $658.3 | $605.3 | +8.7% | | Net income | $139.3 | $146.9 | -5.2% | $420.1 | $414.7 | +1.3% | - Consolidated gross margin as a percentage of revenues increased to **40.1%** in Q3 2025 (from 39.2% in Q3 2024) and to **40.1%** in the three fiscal quarters of 2025 (from 39.3% in 3FQ 2024)[106](index=106&type=chunk) [Revenues](index=25&type=section&id=Revenues) Examines revenue performance across U.S. company-owned stores, franchise royalties, advertising, supply chain, and international segments - Consolidated revenues increased **$66.9 million (6.2%)** in Q3 2025 and **$141.8 million (4.3%)** in the three fiscal quarters of 2025[95](index=95&type=chunk) - Primary drivers were higher supply chain revenues and increased U.S. franchise royalties and fees and advertising revenues[95](index=95&type=chunk) [U.S. Company-owned Stores](index=26&type=section&id=U.S.%20Company-owned%20Stores) Analyzes revenue changes for U.S. company-owned stores, considering refranchising and same store sales impacts - Revenues decreased **$6.5 million (7.2%)** in Q3 2025 and **$7.3 million (2.7%)** in the three fiscal quarters of 2025, primarily due to the refranchising of **36** stores[97](index=97&type=chunk) - Decreases were partially offset by higher same store sales (**+3.4%** in Q3 2025, **+1.0%** in three fiscal quarters 2025)[97](index=97&type=chunk)[98](index=98&type=chunk) [U.S. Franchise Royalties and Fees](index=26&type=section&id=U.S.%20Franchise%20Royalties%20and%20Fees) Examines revenue growth from U.S. franchise royalties and fees, driven by same store sales and store count increases - Revenues increased **$13.1 million (9.1%)** in Q3 2025 and **$22.2 million (5.0%)** in the three fiscal quarters of 2025[99](index=99&type=chunk) - Driven by higher same store sales (**+5.3%** in Q3 2025, **+2.7%** in three fiscal quarters 2025) and an increase in the average number of U.S. franchised stores[99](index=99&type=chunk)[100](index=100&type=chunk) [U.S. Franchise Advertising](index=26&type=section&id=U.S.%20Franchise%20Advertising) Details revenue growth in U.S. franchise advertising, influenced by sales, store growth, and contribution rates - Revenues increased **$10.7 million (8.9%)** in Q3 2025 and **$31.6 million (8.9%)** in the three fiscal quarters of 2025[101](index=101&type=chunk) - Growth was due to higher same store sales, net store growth, decreased advertising incentives, and the return to the standard **6.0%** advertising contribution rate[101](index=101&type=chunk) [Supply Chain](index=26&type=section&id=Supply%20Chain) Analyzes revenue changes in the supply chain segment, driven by order volumes, pricing, and product mix shifts - Revenues increased **$45.6 million (7.0%)** in Q3 2025 and **$84.2 million (4.3%)** in the three fiscal quarters of 2025[102](index=102&type=chunk) - Driven by higher order volumes and a **3.3%** (Q3) / **4.3%** (3FQ) increase in food basket pricing to stores[102](index=102&type=chunk) - Partially offset by a shift in product mix and the transition of the equipment and supplies business to a third-party supplier[102](index=102&type=chunk) [International Franchise Royalties and Fee Revenues](index=27&type=section&id=International%20Franchise%20Royalties%20and%20Fee%20Revenues) Examines revenue growth from international franchise royalties and fees, influenced by store growth and currency impacts - Revenues increased **$3.9 million (5.2%)** in Q3 2025 and **$11.0 million (5.0%)** in the three fiscal quarters of 2025[103](index=103&type=chunk) - Driven by net store growth and same store sales growth (excluding foreign currency impact)[103](index=103&type=chunk) - Foreign currency exchange rates had a positive impact of **$0.8 million** in Q3 2025 but a negative impact of **$2.6 million** in the three fiscal quarters of 2025[103](index=103&type=chunk) [Cost of Sales / Gross Margin](index=27&type=section&id=Cost%20of%20Sales%20/%20Gross%20Margin) Analyzes changes in cost of sales and gross margin for U.S. company-owned stores and the supply chain segment - Consolidated gross margin increased **$36.2 million (8.5%)** in Q3 2025 and **$81.4 million (6.3%)** in the three fiscal quarters of 2025[105](index=105&type=chunk) - Gross margin as a percentage of revenues increased **0.9 percentage points** to **40.1%** in Q3 2025 and **0.8 percentage points** to **40.1%** in the three fiscal quarters of 2025[106](index=106&type=chunk) [U.S. Company-Owned Store Gross Margin](index=28&type=section&id=U.S.%20Company-Owned%20Store%20Gross%20Margin) Examines the decrease in U.S. company-owned store gross margin, influenced by food and labor costs - U.S. Company-owned store gross margin decreased **$1.5 million (9.9%)** in Q3 2025 and **$4.8 million (10.1%)** in the three fiscal quarters of 2025[108](index=108&type=chunk) - As a percentage of store revenues, it decreased **0.5 percentage points** in Q3 2025 and **1.3 percentage points** in the three fiscal quarters of 2025[108](index=108&type=chunk) - Food costs increased **0.7-0.8 percentage points**, driven by food basket pricing, while labor costs decreased **0.2-0.4 percentage points** due to sales leverage[112](index=112&type=chunk) [Supply Chain Gross Margin](index=28&type=section&id=Supply%20Chain%20Gross%20Margin) Analyzes the increase in supply chain gross margin, driven by procurement productivity and sales leverage - Supply chain gross margin increased **$10.0 million (14.3%)** in Q3 2025 and **$21.4 million (9.8%)** in the three fiscal quarters of 2025[109](index=109&type=chunk) - As a percentage of supply chain revenues, it increased **0.7 percentage points** in Q3 2025 and **0.6 percentage points** in the three fiscal quarters of 2025[109](index=109&type=chunk) - Food costs decreased **0.3-0.5 percentage points** due to procurement productivity, and labor costs decreased **0.3-0.4 percentage points** due to sales leverage and efficiency[113](index=113&type=chunk) [General and Administrative Expenses](index=28&type=section&id=General%20and%20Administrative%20Expenses) Details the changes in general and administrative expenses, including severance and non-recurring event costs - General and administrative expenses increased **$1.1 million (1.1%)** in Q3 2025 and **$0.8 million (0.3%)** in the three fiscal quarters of 2025[110](index=110&type=chunk) - The increase for the three fiscal quarters was primarily due to **$5 million** in severance expenses, offset by the non-recurrence of Worldwide Rally expenses from 2024[110](index=110&type=chunk) [U.S. Franchise Advertising Expenses](index=28&type=section&id=U.S.%20Franchise%20Advertising%20Expenses) Explains the increase in U.S. franchise advertising expenses, consistent with revenue growth and brand promotion obligations - U.S. franchise advertising expenses increased **$10.7 million (8.9%)** in Q3 2025 and **$31.6 million (8.9%)** in the three fiscal quarters of 2025, consistent with revenue increases[111](index=111&type=chunk) - These costs are expensed when related revenues are recognized, as the not-for-profit advertising fund is obligated to expend them on brand promotion[111](index=111&type=chunk) [Refranchising (Gain) Loss](index=30&type=section&id=Refranchising%20(Gain)%20Loss) Reports gains and losses from the refranchising of company-owned stores - A **$3.9 million** pre-tax refranchising gain was recorded in Q2 2025 from selling **36** U.S. Company-owned stores for **$8.5 million**[114](index=114&type=chunk) - In Q1 and Q2 2024, pre-tax refranchising losses of approximately **$0.1 million** each were recorded from selling single stores[115](index=115&type=chunk) [Other (Expense) Income](index=30&type=section&id=Other%20(Expense)%20Income) Details unrealized gains and losses on the DPC Dash investment - A net **$3.0 million** pre-tax unrealized loss on DPC Dash investment was recorded in Q3 2025, compared to a net **$5.0 million** pre-tax realized and unrealized gain for the three fiscal quarters of 2025[116](index=116&type=chunk) - In 2024, significant pre-tax unrealized gains of **$26.2 million** (Q3) and **$18.9 million** (3FQ) were recorded on the DPC Dash investment[116](index=116&type=chunk) [Interest Expense, Net](index=30&type=section&id=Interest%20Expense,%20Net) Analyzes changes in net interest expense and the weighted average borrowing rate - Interest expense, net increased **$0.6 million (1.4%)** in Q3 2025 and **$0.4 million (0.3%)** in the three fiscal quarters of 2025[117](index=117&type=chunk) - The weighted average borrowing rate remained stable at **3.8%** for both periods[117](index=117&type=chunk) [Provision for Income Taxes](index=30&type=section&id=Provision%20for%20Income%20Taxes) Details changes in income tax provision and effective tax rates, including impacts from equity-based compensation - Provision for income taxes increased **$2.2 million (5.8%)** in Q3 2025 due to a higher effective tax rate of **22.3%** (vs. 20.4% in Q3 2024)[118](index=118&type=chunk) - For the three fiscal quarters of 2025, it increased **$33.4 million (38.6%)** due to a higher effective tax rate of **22.2%** (vs. 17.3% in 3FQ 2024) and higher income before taxes[119](index=119&type=chunk) - The effective tax rate increase for the three fiscal quarters was primarily driven by a **3.8 percentage point** unfavorable change from excess tax benefits from equity-based compensation[119](index=119&type=chunk) [Segment Income](index=31&type=section&id=Segment%20Income) Analyzes the income performance of the U.S. stores, supply chain, and international franchise segments Segment Income (in millions) | Segment | Q3 2025 | Q3 2024 | Change (%) | 3FQ 2025 | 3FQ 2024 | Change (%) | | :-------------------- | :------ | :------ | :--------- | :------- | :------- | :--------- | | U.S. stores | $136.3 | $128.6 | +6.0% | $402.1 | $394.2 | +2.0% | | Supply chain | $70.2 | $61.2 | +14.7% | $217.2 | $190.7 | +13.9% | | International franchise | $67.3 | $62.4 | +7.9% | $196.6 | $180.8 | +8.7% | [U.S. Stores](index=31&type=section&id=U.S.%20Stores) Details the increase in U.S. stores Segment Income, driven by franchise royalties and fees - U.S. stores Segment Income increased **$7.7 million (6.0%)** in Q3 2025 and **$7.9 million (2.0%)** in the three fiscal quarters of 2025[124](index=124&type=chunk) - Primarily driven by higher U.S. franchise royalties and fees revenues, partially offset by a decrease in U.S. Company-owned store gross margin[124](index=124&type=chunk) [Supply Chain](index=31&type=section&id=Supply%20Chain) Analyzes the increase in supply chain Segment Income, primarily due to gross margin improvements - Supply chain Segment Income increased **$9.0 million (14.7%)** in Q3 2025 and **$26.5 million (13.9%)** in the three fiscal quarters of 2025[126](index=126&type=chunk) - Primarily due to the **$10.0 million** increase in supply chain gross margin in Q3 and **$21.4 million** increase in the three fiscal quarters[126](index=126&type=chunk) [International Franchise](index=31&type=section&id=International%20Franchise) Details the increase in international franchise Segment Income, driven by royalties and lower G&A expenses - International franchise Segment Income increased **$4.9 million (7.9%)** in Q3 2025 and **$15.8 million (8.7%)** in the three fiscal quarters of 2025[127](index=127&type=chunk) - Mainly due to higher international franchise royalties and fees revenues and lower general and administrative expenses (due to non-recurrence of Worldwide Rally)[127](index=127&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's working capital, sources and uses of cash, debt, share repurchases, and dividends - As of September 7, 2025, working capital was **$123.0 million** (excluding restricted cash and advertising fund items)[129](index=129&type=chunk) - Primary sources of liquidity are cash flows from operations and availability of borrowings under the **$320.0 million** variable funding notes facility, with **$263.6 million** available capacity[130](index=130&type=chunk) - Expected uses of cash include funding working capital, investing in the core business, repaying debt, paying dividends, and repurchasing shares[131](index=131&type=chunk) [Restricted Cash](index=32&type=section&id=Restricted%20Cash) Details the composition of restricted cash and cash equivalents, including amounts for debt payments and advertising - Total restricted cash and cash equivalents were **$202.5 million** as of September 7, 2025, including **$151.9 million** for debt payments and working capital, and **$50.4 million** in an interest reserve[133](index=133&type=chunk) - An additional **$109.6 million** of advertising fund restricted cash and cash equivalents is held for brand promotion activities[133](index=133&type=chunk) [Long-Term Debt](index=33&type=section&id=Long-Term%20Debt) Reports the company's long-term debt, its classification, and debt covenant requirements - As of September 7, 2025, the Company had approximately **$4.82 billion** of long-term debt[135](index=135&type=chunk) - The Company satisfied non-amortization tests for its fixed rate notes, classifying outstanding principal as long-term debt[135](index=135&type=chunk) - Debt covenants require a minimum debt service coverage ratio of **1.75x**[136](index=136&type=chunk) [Share Repurchase Programs](index=33&type=section&id=Share%20Repurchase%20Programs) Details share repurchases during the quarter and fiscal quarters, and remaining authorization - During Q3 2025, the Company repurchased and retired **165,778** shares for **$74.7 million**[138](index=138&type=chunk) - For the three fiscal quarters of 2025, **596,754** shares were repurchased for approximately **$274.7 million**[138](index=138&type=chunk) - As of September 7, 2025, approximately **$539.7 million** remained authorized for future share repurchases[138](index=138&type=chunk) [Dividends](index=33&type=section&id=Dividends) Reports quarterly dividends declared by the Board of Directors - On July 15, 2025, the Board declared a **$1.74 per share** quarterly dividend, paid on September 30, 2025[139](index=139&type=chunk) - A subsequent **$1.74 per share** quarterly dividend was declared on October 7, 2025, payable on December 26, 2025[139](index=139&type=chunk) [Sources and Uses of Cash](index=34&type=section&id=Sources%20and%20Uses%20of%20Cash) Summarizes cash flow activities from operations, investing, and financing, and their primary drivers Sources and Uses of Cash (Three Fiscal Quarters, in millions) | Cash Flow Activity | 2025 | 2024 | Change | | :--------------------------------------- | :--- | :--- | :----- | | Net cash provided by operating activities | $552.3 | $446.9 | +$105.4 | | Net cash used in investing activities | $(6.1) | $(71.9) | +$65.8 | | Net cash used in financing activities | $(558.2) | $(313.0) | $(245.2) | | Change in cash and cash equivalents, restricted cash and cash equivalents | $(10.6) | $61.4 | $(72.0) | - Operating cash flow increase driven by changes in operating assets/liabilities, higher net income (excluding non-cash), and positive change in restricted advertising fund assets/liabilities[142](index=142&type=chunk) - Investing cash flow decrease due to **$44.1 million** from DPC Dash share sale and **$8.5 million** from refranchising stores, offsetting **$56.7 million** in capital expenditures[143](index=143&type=chunk) - Financing cash flow increase due to **$1.00 billion** new debt issuance, **$1.14 billion** debt repayment, **$274.7 million** share repurchases, and **$119.5 million** dividend payments[144](index=144&type=chunk) [Critical Accounting Estimates](index=34&type=section&id=Critical%20Accounting%20Estimates) Identifies the company's most significant accounting policies and estimates, noting no material changes - The Company's most significant accounting policies and estimates include long-lived assets, casualty insurance reserves, and income taxes[145](index=145&type=chunk) - There have been no material changes to the Company's critical accounting estimates since December 29, 2024[145](index=145&type=chunk) [Forward-Looking Statements](index=35&type=section&id=Forward-Looking%20Statements) Highlights that the filing contains forward-looking statements subject to risks and uncertainties detailed in the 2024 Form 10-K - This filing contains forward-looking statements based on current management expectations, subject to substantial risks and uncertainties[146](index=146&type=chunk) - Important factors that could cause actual results to differ materially are described in the 'Risk Factors' section of the 2024 Form 10-K[146](index=146&type=chunk) - Risks include substantial indebtedness, competitive industry, labor shortages, commodity costs, economic conditions, and regulatory changes[146](index=146&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Outlines exposure to market risks, including interest rate fluctuations on variable funding notes, commodity price changes, and foreign currency exchange risk [Market Risk](index=36&type=section&id=Market%20Risk) Discusses exposure to interest rate risk on variable and fixed-rate debt, and commodity price fluctuations - The Company is exposed to interest rate risk on borrowings under its 2025 Variable Funding Notes, which bear interest at fluctuating rates based on Term SOFR[147](index=147&type=chunk)[148](index=148&type=chunk) - Fixed-rate debt exposes the Company to changes in market interest rates reflected in the fair value of the debt and the risk of refinancing at higher rates[149](index=149&type=chunk) - The Company is exposed to market risks from changes in food and commodity prices (e.g., cheese) but does not engage in speculative transactions or use financial instruments for trading purposes to manage this risk[150](index=150&type=chunk) [Foreign Currency Exchange Risk](index=36&type=section&id=Foreign%20Currency%20Exchange%20Risk) Addresses exposure to foreign currency exchange rate fluctuations from international operations and its potential impact - The Company has exposure to foreign currency exchange rate fluctuations for revenues generated by operations outside the U.S., primarily from its international franchise segment and Canadian supply chain[151](index=151&type=chunk) - International franchise revenues constituted approximately **6.8%** of total revenues in Q3 and three fiscal quarters of 2025[151](index=151&type=chunk) - A hypothetical **10%** adverse change in foreign currency rates would result in an estimated negative impact of **$20.4 million** on royalty revenues for the three fiscal quarters of 2025[151](index=151&type=chunk) - The Company does not enter into financial instruments to manage foreign currency exchange risk[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 7, 2025, with no material changes in internal control over financial reporting - The Company's disclosure controls and procedures were evaluated by management, including the CEO and CFO, and concluded to be effective as of September 7, 2025[152](index=152&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the quarterly period ended September 7, 2025[153](index=153&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) Presents additional information including legal proceedings, risk factors, equity sales, defaults, and exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Details the company's involvement in ordinary course legal and administrative proceedings, with no expected material adverse effect - The Company is a party to lawsuits, revenue agent reviews, and administrative proceedings in the ordinary course of business[155](index=155&type=chunk) - The Company does not believe these matters, individually or in the aggregate, will have a material adverse effect on its business or financial condition[156](index=156&type=chunk) - Established accruals are expected to adequately provide for the estimated resolution of such claims[156](index=156&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to the risk factors previously disclosed in the 2024 Form 10-K - No material changes with respect to those risk factors previously disclosed in Item 1A 'Risk Factors' in Part I of the 2024 Form 10-K[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases during Q3 2025 and the remaining authorization under the share repurchase program Purchases of Equity Securities by the Issuer | Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (2) (in thousands) | | :----------------------------------- | :----------------------------------- | :--------------------------- | :----------------------------------------------------------------------- | :------------------------------------------------------------------------------------------------- | | Period 7 (June 16, 2025 to July 13, 2025) | 1,185 | $454.44 | — | $614,338 | | Period 8 (July 14, 2025 to August 10, 2025) | 1,784 | $464.70 | — | $614,338 | | Period 9 (August 11, 2025 to September 7, 2025) | 167,061 | $450.47 | 165,778 | $539,681 | | Total | 170,030 | $450.64 | 165,778 | $539,681 | - As of September 7, 2025, **$539.7 million** remained available for future purchases of the Company's common stock under its share repurchase program[160](index=160&type=chunk) [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Confirms no defaults occurred on senior securities during the reporting period - None[162](index=162&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) States that this item is not applicable to the company's operations - Not applicable[163](index=163&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) Details Rule 10b5-1 trading plans adopted by certain Section 16 officers during the fiscal quarter [Rule 10b5-1 Trading Plans](index=38&type=section&id=Rule%2010b5-1%20Trading%20Plans) Outlines new Rule 10b5-1 trading arrangements adopted by key executives, in compliance with company policy - Cynthia A. Headen, EVP, Chief Supply Chain Officer, adopted a new Rule 10b5-1 trading arrangement on August 18, 2025, for up to **3,525** shares and **7,453** stock options[167](index=167&type=chunk) - Jessica L. Parrish, VP, Chief Accounting Officer and Treasurer, adopted a new Rule 10b5-1 trading arrangement on August 27, 2025, for up to **1,845** shares[167](index=167&type=chunk) - These trading arrangements were adopted and precleared in accordance with Domino's Insider Trading Policy[166](index=166&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including debt agreements, CEO/CFO certifications, and XBRL documents - Includes debt agreements related to the 2025 refinancing, such as the Ninth Supplement to the Amended and Restated Base Indenture and Series 2025-1 Supplement[168](index=168&type=chunk) - Contains certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002[168](index=168&type=chunk) - Includes XBRL Instance Document and Taxonomy Extension documents for interactive data filing[168](index=168&type=chunk) [SIGNATURES](index=41&type=section&id=SIGNATURES) The report was signed by Sandeep Reddy, EVP and CFO, on October 14, 2025, on behalf of Domino's Pizza, Inc - The report was signed by Sandeep Reddy, Executive Vice President, Chief Financial Officer, on October 14, 2025[170](index=170&type=chunk)

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) This section provides an overview of Domino's strong third-quarter 2025 financial performance and strategic achievements, highlighting key operational and financial metrics [Third Quarter 2025 Overview](index=1&type=section&id=Third%20Quarter%202025%20Overview) Domino's Pizza announced strong financial results for the third quarter of 2025, with significant global retail sales growth, positive U.S. same-store sales, and an increase in income from operations Third Quarter 2025 Key Highlights | Metric | Value | | :------------------------------------------------ | :------ | | Global retail sales growth (excluding foreign currency impact) | 6.3% | | U.S. same store sales growth | 5.2% | | International same store sales growth (excluding foreign currency impact) | 1.7% | | Global net store growth | 214 | | Income from operations increase | 12.2% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Russell Weiner highlighted the successful execution of the 'Hungry for MORE' strategy, driving positive order counts in the U.S. and strong growth in both delivery and carryout, expressing confidence in continued market share gains - The 'Hungry for MORE' strategy is successfully driving **positive order counts in the U.S.** through promotions like 'Best Deal Ever' and product innovation such as stuffed crust pizza[2](index=2&type=chunk) - The company achieved **strong growth in both delivery and carryout businesses** in the U.S. during the third quarter[2](index=2&type=chunk) - Management is confident in continuing to **gain QSR pizza market share globally** in 2025 and beyond, leveraging tools for long-term value creation for franchisees and shareholders[2](index=2&type=chunk) [Operational Performance](index=1&type=section&id=Operational%20Performance) This section details Domino's global retail sales, same-store sales growth, and net store expansion, showcasing robust performance across U.S. and international markets [Global Retail Sales and Same Store Sales Growth](index=1&type=section&id=Global%20Retail%20Sales%20and%20Same%20Store%20Sales%20Growth) Domino's reported robust global retail sales and same-store sales growth for both the third quarter and the three fiscal quarters of 2025, with U.S. performance notably strong Global Retail Sales (in millions of U.S. dollars) | Metric | Third Quarter 2025 | Third Quarter 2024 | Three Fiscal Quarters 2025 | Three Fiscal Quarters 2024 | | :------------------ | :----------------- | :----------------- | :------------------------- | :------------------------- | | U.S. stores | $2,320.4 | $2,168.4 | $6,896.8 | $6,602.5 | | International stores | $2,375.8 | $2,223.6 | $6,933.5 | $6,581.9 | | Total | $4,696.2 | $4,392.0 | $13,830.3 | $13,184.4 | Global Retail Sales Growth (versus prior year period, excluding foreign currency impact) | Metric | Third Quarter 2025 | Third Quarter 2024 | Three Fiscal Quarters 2025 | Three Fiscal Quarters 2024 | | :------------------ | :----------------- | :----------------- | :------------------------- | :------------------------- | | U.S. stores | +7.0% | +5.1% | +4.5% | +6.6% | | International stores | +5.7% | +5.1% | +6.6% | +6.5% | | Total | +6.3% | +5.1% | +5.5% | +6.5% | Same Store Sales Growth (versus prior year period) | Metric | Third Quarter 2025 | Third Quarter 2024 | Three Fiscal Quarters 2025 | Three Fiscal Quarters 2024 | | :------------------------------------------ | :----------------- | :----------------- | :------------------------- | :------------------------- | | U.S. Company-owned stores | +3.4% | +3.1% | +1.0% | +5.4% | | U.S. franchise stores | +5.3% | +3.0% | +2.7% | +4.4% | | U.S. stores | +5.2% | +3.0% | +2.7% | +4.5% | | International stores (excluding foreign currency impact) | +1.7% | +0.8% | +2.5% | +1.1% | [Store Growth](index=2&type=section&id=Store%20Growth) Domino's achieved significant global net store growth in Q3 2025, adding 214 stores worldwide, with a substantial portion from international markets Third Quarter 2025 Store Counts | Metric | U.S. Company-owned Stores | U.S. Franchise Stores | Total U.S. Stores | International Stores | Total | | :-------------------------- | :------------------------ | :-------------------- | :---------------- | :------------------- | :------ | | Store count at June 15, 2025 | 258 | 6,803 | 7,061 | 14,475 | 21,536 | | Openings | 2 | 28 | 30 | 220 | 250 | | Closings | — | (1) | (1) | (35) | (36) | | Store count at September 7, 2025 | 260 | 6,830 | 7,090 | 14,660 | 21,750 | | Third quarter 2025 net store growth | 2 | 27 | 29 | 185 | 214 | | Trailing four quarters net store growth | 3 | 157 | 160 | 588 | 748 | [Financial Performance](index=2&type=section&id=Financial%20Performance) This section analyzes Domino's consolidated revenues, gross margins, income from operations, net income, earnings per share, and cash flow, detailing key financial drivers and capital allocation strategies [Consolidated Revenues and Gross Margins](index=2&type=section&id=Consolidated%20Revenues%20and%20Gross%20Margins) Total revenues increased by 6.2% in Q3 2025, driven by higher supply chain revenues and U.S. franchise royalties. Supply chain gross margin improved due to procurement productivity, while U.S. Company-owned store gross margin slightly decreased Total Revenues and Gross Margins | Metric | Third Quarter 2025 | Third Quarter 2024 | Change (%) | Three Fiscal Quarters 2025 | Three Fiscal Quarters 2024 | Change (%) | | :-------------------------- | :----------------- | :----------------- | :--------- | :------------------------- | :------------------------- | :--------- | | Total revenues | $1,147.1M | $1,080.1M | +6.2% | $3,404.3M | $3,262.5M | +4.3% | | U.S. Company-owned store gross margin | 16.3% | 16.8% | (0.5) pp | 16.0% | 17.3% | (1.3) pp | | Supply chain gross margin | 11.3% | 10.6% | +0.7 pp | 11.6% | 11.0% | +0.6 pp | - The increase in supply chain revenues was primarily due to **higher order volumes** and a **3.3% increase in food basket pricing** to stores[5](index=5&type=chunk) - U.S. Company-owned store gross margin decreased due to **increased food basket pricing and higher wage rates**, partially offset by higher sales leverage[5](index=5&type=chunk) [Income from Operations and Net Income](index=2&type=section&id=Income%20from%20Operations%20and%20Net%20Income) Income from operations increased significantly in Q3 2025, primarily driven by higher U.S. franchise royalties and supply chain gross margin. However, net income decreased due to an unfavorable change in unrealized losses on DPC Dash Ltd. investment and a higher effective tax rate Income from Operations and Net Income | Metric | Third Quarter 2025 | Third Quarter 2024 | Change (%) | Three Fiscal Quarters 2025 | Three Fiscal Quarters 2024 | Change (%) | | :-------------------- | :----------------- | :----------------- | :--------- | :------------------------- | :------------------------- | :--------- | | Income from operations | $223.2M | $198.8M | +12.2% | $658.3M | $605.3M | +8.7% | | Net income | $139.3M | $146.9M | (5.2)% | $420.1M | $414.7M | +1.3% | - The decrease in net income was primarily due to a **$29.2 million unfavorable change in pre-tax unrealized losses and gains** associated with the investment in DPC Dash Ltd[10](index=10&type=chunk) - The effective tax rate increased to **22.3% in Q3 2025 from 20.4% in Q3 2024**, contributing to a $2.2 million increase in the provision for income taxes[10](index=10&type=chunk) [Earnings Per Share (EPS)](index=2&type=section&id=Earnings%20Per%20Share%20%28EPS%29) Diluted EPS decreased in Q3 2025 compared to the prior year, primarily due to lower net income, partially offset by a reduced weighted average diluted share count from share repurchases Diluted Earnings Per Share | Metric | Third Quarter 2025 | Third Quarter 2024 | Change (%) | Three Fiscal Quarters 2025 | Three Fiscal Quarters 2024 | Change (%) | | :------------------ | :----------------- | :----------------- | :--------- | :------------------------- | :------------------------- | :--------- | | Diluted earnings per share | $4.08 | $4.19 | (2.6)% | $12.22 | $11.80 | +3.6% | - The decrease in diluted EPS for Q3 2025 was driven by **lower net income**, partially mitigated by a **lower weighted average diluted share count** due to share repurchases[10](index=10&type=chunk) [Cash Flow and Capital Allocation](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) Domino's demonstrated strong cash flow generation, with significant increases in operating and free cash flow, alongside continued capital returns to shareholders through dividends and share repurchases [Operating and Free Cash Flow](index=2&type=section&id=Operating%20and%20Free%20Cash%20Flow) Net cash provided by operating activities and free cash flow saw substantial increases for the three fiscal quarters of 2025, driven by positive changes in operating assets and liabilities, higher net income, and lower capital expenditures Cash Flow Summary (Three Fiscal Quarters) | Metric | 2025 | 2024 | Change (%) | | :-------------------------------- | :--------- | :--------- | :--------- | | Net cash provided by operating activities | $552.3M | $446.9M | +23.6% | | Capital expenditures | ($56.7M) | ($70.8M) | (19.9)% | | Free cash flow | $495.6M | $376.1M | +31.8% | - The increase in free cash flow was a result of the **positive impact of changes in operating assets and liabilities**, higher net income excluding non-cash operating activities, timing of advertising activities, and **lower investments in capital expenditures**[10](index=10&type=chunk) [Quarterly Dividend](index=3&type=section&id=Quarterly%20Dividend) The Board of Directors declared a quarterly dividend of $1.74 per share subsequent to the third quarter - A quarterly dividend of **$1.74 per share** was declared on October 7, 2025, for shareholders of record as of December 15, 2025, to be paid on December 26, 2025[6](index=6&type=chunk) [Share Repurchases](index=3&type=section&id=Share%20Repurchases) The company continued its share repurchase program, buying back shares in Q3 and year-to-date, with a substantial amount remaining authorized Share Repurchase Activity | Period | Shares Repurchased | Total Value | | :---------------------- | :----------------- | :------------ | | Third Quarter 2025 | 165,778 | $74.7 million | | Three Fiscal Quarters 2025 | 596,754 | $274.7 million | - As of September 7, 2025, the Company had a remaining authorized amount for share repurchases of **$539.7 million**[7](index=7&type=chunk) [Debt and Capital Structure](index=3&type=section&id=Debt%20and%20Capital%20Structure) This section outlines Domino's recent refinancing activities and leverage ratio, demonstrating its approach to managing debt and maintaining a stable capital structure [2025 Refinancing](index=3&type=section&id=2025%20Refinancing) Domino's completed a $1.00 billion refinancing transaction in September 2025, issuing new fixed-rate senior secured notes to repay existing debt and prefund interest, along with establishing a new variable funding note facility - On September 5, 2025, the Company completed a **$1.00 billion refinancing**, issuing $500.0 million of 4.930% fixed rate senior secured notes (five-year term) and $500.0 million of 5.217% fixed rate senior secured notes (seven-year term)[8](index=8&type=chunk) - Proceeds from the new notes and **$160.0 million of unrestricted cash** were used to repay $742.0 million of 2015 notes and $402.7 million of 2018 notes, prefund interest, and capitalize financing costs[9](index=9&type=chunk) - A new **$320.0 million variable funding note facility** was issued, replacing previous facilities, and was undrawn at closing[9](index=9&type=chunk) [Leverage Ratio](index=2&type=section&id=Leverage%20Ratio) The company's leverage ratio improved to 4.5x in Q3 2025 from 4.9x in Q3 2024, falling within its historical operating range of four to six times Leverage Ratio | Metric | September 7, 2025 | September 8, 2024 | | :------------ | :------------------ | :------------------ | | Leverage ratio | 4.5x | 4.9x | - The leverage ratio is calculated as securitized debt related to fixed-rate notes and variable funding notes, divided by Consolidated Adjusted EBITDA on a trailing four quarters basis[19](index=19&type=chunk) - Domino's historically operates with a leverage ratio between **four and six times**[19](index=19&type=chunk) [Non-GAAP Financial Measures and Statistical Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Statistical%20Definitions) This section defines key non-GAAP financial measures and statistical metrics used by Domino's to analyze performance and communicate with investors [Definitions of Key Metrics](index=4&type=section&id=Definitions%20of%20Key%20Metrics) This section provides definitions for various non-GAAP financial measures and statistical metrics used by Domino's to analyze performance and communicate with investors, including global retail sales, same store sales growth, net store growth, food basket pricing change, free cash flow, income from operations excluding foreign currency impact, Consolidated Adjusted EBITDA, and leverage ratio - Global retail sales refer to total worldwide retail sales at Company-owned and franchise stores, used to **analyze revenues and assess business trends**[12](index=12&type=chunk) - Same store sales growth is calculated by including retail sales from stores that had sales in comparable weeks of both periods, with international growth reported **excluding foreign currency impacts**[13](index=13&type=chunk) - Free cash flow is defined as net cash provided by operating activities less capital expenditures, indicating **cash available for working capital, debt repayment, acquisitions, share repurchases, or dividends**[16](index=16&type=chunk) - Consolidated Adjusted EBITDA is calculated as Segment Income less unallocated corporate administrative costs, used for business objectives, long-range planning, and **evaluating total Company operating performance**[18](index=18&type=chunk) [Company Information & Forward-Looking Statements](index=6&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) This section provides an overview of Domino's company profile and includes a safe harbor statement regarding forward-looking information and associated risks [Conference Call and Company Profile](index=6&type=section&id=Conference%20Call%20and%20Company%20Profile) Domino's Pizza, founded in 1960, is the world's largest pizza company with over 21,700 stores globally, primarily operated by independent franchisees, and a strong digital sales presence in the U.S - Domino's Pizza is the **largest pizza company globally**, with over 21,700 stores in more than 90 markets[23](index=23&type=chunk) - The company's system is comprised of independent franchise owners, accounting for **99% of stores** as of the end of Q3 2025[23](index=23&type=chunk) - In 2024, **over 85% of U.S. retail sales were generated via digital channels**, supported by innovative ordering platforms[23](index=23&type=chunk) [Safe Harbor Statement](index=7&type=section&id=Safe%20Harbor%20Statement) This section provides a safe harbor statement for forward-looking statements, outlining inherent risks and uncertainties that could cause actual results to differ materially from expectations, advising caution against undue reliance - The press release contains forward-looking statements based on current management expectations, subject to **substantial risks and uncertainties**[25](index=25&type=chunk) - Important factors that could cause actual results to differ materially are described in SEC filings, including the **'Risk Factors' section of the Annual Report on Form 10-K**[25](index=25&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of the press release[25](index=25&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Domino's unaudited condensed consolidated statements of income, balance sheets, and cash flows for the reported periods [Condensed Consolidated Statements of Income (Quarterly)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Quarterly%29) The unaudited condensed consolidated statements of income for the fiscal quarter ended September 7, 2025, show total revenues of $1,147.1 million and net income of $139.3 million, with diluted EPS of $4.08 Condensed Consolidated Statements of Income (Fiscal Quarter Ended September 7, 2025 vs. September 8, 2024) | (In thousands) | September 7, 2025 | % of Total Revenues | September 8, 2024 | % of Total Revenues | | :---------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Total revenues | $1,147,054 | 100.0% | $1,080,119 | 100.0% | | Total cost of sales | $687,152 | 59.9% | $656,372 | 60.8% | | Gross margin | $459,902 | 40.1% | $423,747 | 39.2% | | Income from operations | $223,168 | 19.5% | $198,831 | 18.4% | | Net income | $139,319 | 12.1% | $146,924 | 13.6% | | Diluted earnings per share | $4.08 | | $4.19 | | [Condensed Consolidated Statements of Income (Year-to-Date)](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Year-to-Date%29) For the three fiscal quarters ended September 7, 2025, total revenues reached $3,404.3 million, with net income of $420.1 million and diluted EPS of $12.22 Condensed Consolidated Statements of Income (Three Fiscal Quarters Ended September 7, 2025 vs. September 8, 2024) | (In thousands) | September 7, 2025 | % of Total Revenues | September 8, 2024 | % of Total Revenues | | :---------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Total revenues | $3,404,254 | 100.0% | $3,262,502 | 100.0% | | Total cost of sales | $2,040,235 | 59.9% | $1,979,854 | 60.7% | | Gross margin | $1,364,019 | 40.1% | $1,282,648 | 39.3% | | Income from operations | $658,307 | 19.3% | $605,347 | 18.6% | | Net income | $420,061 | 12.3% | $414,726 | 12.7% | | Diluted earnings per share | $12.22 | | $11.80 | | [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheet as of September 7, 2025, shows total assets of $1,660.3 million and a total stockholders' deficit of ($3,962.0) million Condensed Consolidated Balance Sheets (as of September 7, 2025 vs. December 29, 2024) | (In thousands) | September 7, 2025 | December 29, 2024 | | :---------------------------------- | :------------------ | :------------------ | | Total current assets | $867,734 | $905,278 | | Total assets | $1,660,277 | $1,737,013 | | Total current liabilities | $539,153 | $1,612,462 | | Total long-term liabilities | $5,083,083 | $4,086,842 | | Total stockholders' deficit | ($3,961,959) | ($3,962,291) | | Total liabilities and stockholders' deficit | $1,660,277 | $1,737,013 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three fiscal quarters ended September 7, 2025, net cash provided by operating activities was $552.3 million, while net cash used in investing activities was $6.1 million and net cash used in financing activities was $558.2 million Condensed Consolidated Statements of Cash Flows (Three Fiscal Quarters Ended September 7, 2025 vs. September 8, 2024) | (In thousands) | September 7, 2025 | September 8, 2024 | | :---------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $552,256 | $446,879 | | Net cash used in investing activities | ($6,063) | ($71,895) | | Net cash used in financing activities | ($558,241) | ($312,998) | | Change in cash and cash equivalents, restricted cash and cash equivalents | ($10,561) | $61,397 | | Cash and cash equivalents, end of period | $139,728 | $189,084 |

Core Insights - Domino's Pizza, Inc. reported a global retail sales growth of 6.3% for the third quarter of 2025, with U.S. same-store sales growth at 5.2% and international same-store sales growth at 1.7% [1][4] - The company achieved a net store growth of 214, with 29 openings in the U.S. and 185 internationally [1][5] - Income from operations increased by 12.2% to $223.2 million, driven by higher franchise royalties and supply chain gross margin growth [10][5] Financial Performance - Total revenues for the third quarter of 2025 reached $1,147.1 million, a 6.2% increase compared to $1,080.1 million in the same quarter of 2024 [5][10] - Net income decreased by 5.2% to $139.3 million, primarily due to unfavorable changes in unrealized losses related to investments [10][5] - Diluted earnings per share (EPS) were $4.08, down 2.6% from $4.19 in the previous year [10][5] Operational Highlights - The company reported a gross margin of 40.1% for the third quarter, up from 39.2% in the previous year [10][5] - Supply chain gross margin improved by 0.7 percentage points, attributed to procurement productivity [10][5] - Free cash flow increased by 31.8% to $495.6 million, reflecting better operating cash flow and reduced capital expenditures [10][5] Strategic Initiatives - The CEO highlighted the success of the "Hungry for MORE" strategy, which contributed to positive order counts and strong growth in delivery and carryout businesses [2][5] - The company declared a quarterly dividend of $1.74 per share, payable on December 26, 2025 [6] - Share repurchases totaled 165,778 shares for $74.7 million during the third quarter, with a remaining authorization of $539.7 million for future buybacks [7][5] Market Position - Domino's operates over 21,700 stores globally, with a significant portion of U.S. retail sales generated through digital channels [25][5] - The company continues to focus on expanding its market share in the quick-service restaurant (QSR) pizza segment [2][5]

Market Performance - The Dow gained 587 points (+1.29%), the S&P 500 added 102 points (+1.56%), the Nasdaq rose 490 points (+2.21%), and the Russell 2000 increased by 66 points (+2.79%) following a significant sell-off on Friday [1] AI and Quantum Computing Stocks - Investors looking for entry points into AI and Big Tech drove quantum computing stocks higher, with Rigetti (RGTI) up 25% and D-Wave (QBTS) up 23% [2] - Shares of U.S. Antimony (UAMY) and Critical Metals (CRML) surged by 36.8% and 55.4%, respectively, due to ongoing discussions about rare earth minerals [2] Broadcom and OpenAI Partnership - Broadcom (AVGO) entered a deal with OpenAI to produce approximately 10 gigawatts of custom chips valued at around $10 billion, resulting in a 9.9% increase in Broadcom's shares [3] Upcoming Earnings Reports - Major banks are set to report Q3 earnings, with JPMorgan expected to see a 10.5% growth in earnings and 5.2% in revenues, Citigroup anticipated to post 21.2% earnings growth and 3.7% revenue growth, and Wells Fargo projecting 2% earnings growth and 4% revenue growth [4] - Goldman Sachs (GS) and BlackRock (BLK) will also release their quarterly earnings reports, along with Johnson & Johnson (JNJ) and Domino's Pizza (DPZ) [5]