Domino's Pizza® Announces Second Quarter 2025 Financial Results

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]