Domino's Q3 Earnings & Revenues Beat Estimates, Stock Up

Core Insights - Domino's Pizza, Inc. (DPZ) reported third-quarter fiscal 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, leading to a 4% increase in shares during pre-market trading [1] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $4.08, surpassing the Zacks Consensus Estimate of $3.99, although this represents a 2.6% decline from $4.19 in the same quarter last year [3][10] - Revenues reached $1,147.1 million, beating the consensus mark of $1,139 million, and reflecting a year-over-year increase of 6.2% driven by U.S. franchise royalties and higher supply-chain revenues [3][10] Operational Highlights - The company achieved positive order growth in the U.S., supported by the "Best Deal Ever" promotion and innovations in stuffed-crust pizza, enhancing momentum in both delivery and carryout channels [2] - Domino's opened 214 net new stores during the quarter, contributing to a 6.3% rise in global retail sales year-over-year [4][10] Sales Metrics - Global retail sales (excluding foreign currency impact) increased by 6.3% year-over-year, with U.S. store sales rising by 7% and international sales by 5.7% [5] - Comparable store sales (comps) in the U.S. rose by 5.2%, with domestic company-owned stores seeing a 3.4% increase and franchise stores rising by 5.3% [5][6] Margin Analysis - Gross margin expanded by 90 basis points year-over-year to 40.1%, although the gross margin for U.S. company-owned stores contracted by 50 basis points to 16.3% due to increased food costs and wage expenses [8] Balance Sheet Overview - As of September 7, 2025, cash and cash equivalents totaled $139.7 million, down from $186.1 million at the end of the previous year [11] - Long-term debt increased to $4.81 billion from $3.83 billion in the prior quarter, while inventory rose slightly to $71.2 million [11] Shareholder Returns - The company repurchased 165,778 shares for a total cost of $74.7 million and declared a cash dividend of $1.74 per share, payable on December 26, 2025 [12]