Here’s how one company took advantage of the domino effect in real time: Trade wars and economic uncertainty triggered a consumer pullback, a consumer pullback triggered fast-food industry competition on price, competition on price is triggering an overhaul of Domino’s discounts and deals, and Domino’s discounts and deals are leading to more customers. In its third-quarter earnings report on Tuesday, Domino’s Pizza announced stellar results, with revenue rising more than 6% year-over-year and same-store s ...

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Domino’s Pizza is pulling multiple value levers in a tough macroeconomic environment, and it appears to be working. The Ann Arbor, Mich.-based pizza chain cited its “Best Deal Ever” promotion as a major driver of U.S. sales growth for the third quarter ended Sept. 7, 2025. Over the past few months, Domino’s brought back both the Best Deal Ever promotion — offering any pizza with any toppings for $9.99 — and the company’s ...

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 ...

Group 1: Apple Inc. - Apple reported a 10% increase in revenue to $94 billion in the June quarter, the fastest growth since 2021, driven by strong performance in the iPhone and services segments [4] - GAAP earnings rose 12% to $1.57 per diluted share, indicating solid financial health despite facing headwinds [4] - The company is experiencing challenges from the Digital Markets Act in Europe and an antitrust lawsuit involving Alphabet, which could impact its services revenue and pre-tax profits by 7% [6] - Apple has a valuation issue, with a current price-to-earnings ratio of 35, leading to a PEG ratio of 3.5, significantly higher than competitors like Amazon and Nvidia [7] Group 2: Domino's Pizza - Domino's reported a 4% increase in revenue to $1.1 billion, attributed to 3.4% same-store sales growth and 178 net new store openings [8] - GAAP earnings decreased by 6% to $3.81 per diluted share due to losses on strategic investments, but operating income increased by 15% to $225 million [8] - The investment thesis for Domino's is based on its scale and brand authority, being the largest pizza company globally with over 21,500 stores [9] - Domino's introduced a "Hungry for More" strategy targeting 7% annual retail sales growth and 8% annual operating income growth through 2028, with plans to open 5,500 new stores [10] - Wall Street anticipates Domino's earnings to grow at 10% annually over the next three years, with a current valuation of 27 times earnings [12]

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]

Core Insights - Domino's Pizza is facing challenges in 2025 but shows potential for growth through its "Hungry for MORE" strategy, with reaffirmed guidance indicating strength in the latter half of the year [3][9]. Financial Performance - Q1 net revenue reached $1.11 billion, reflecting a 2.5% increase driven by a 2.3% rise in global retail sales [10]. - U.S. comparable store sales decreased by 0.5%, but this was offset by a 3.7% increase in international sales on a foreign exchange neutral basis [10]. - System-wide comparable sales increased by 4.7% on an FX-neutral basis, indicating market share growth [11]. - GAAP earnings rose nearly 21% to $4.33, supported by a reduced share count [13]. Strategic Initiatives - The launch of the Parmesan Stuffed Crust Pizza is noted as the most successful in the company's history, expected to significantly boost delivery orders through a new partnership with DoorDash [4]. - Share buybacks totaled $50 million in Q1, reducing the share count by 1.6% year-over-year, with a remaining authorization of $764 million [14]. Analyst Sentiment - Analysts have mixed reactions, with a consensus price target of just over $515, reflecting a 3% increase from prior estimates [5]. - The high-end price forecast has been raised to $560/$565, suggesting potential for a new multi-year high [6]. - Institutional ownership stands at approximately 95%, providing a bullish outlook as institutions continue to buy shares [8]. Market Outlook - Despite headwinds such as foreign exchange conversion and a reduced store count, the company is expected to leverage its strengths in international markets [10]. - The macroeconomic outlook remains uncertain, which may influence short-seller behavior [9].

Financial Data and Key Metrics Changes - Income from operations increased by 1.4% in Q1, excluding foreign currency impact, primarily due to gross margin dollar growth within the supply chain and higher international franchise royalties and fees [16] - Global retail sales grew by 4.7% in Q1, driven by positive international comps and global net store growth compared to the previous year [17] - U.S. retail sales grew by 1.3%, primarily driven by net store growth, while same-store sales declined by 0.5% [17][18] - International retail sales grew by 8.2%, excluding foreign currency impact, with same-store sales at 3.7% [20] Business Line Data and Key Metrics Changes - The U.S. carryout business comps were up 1%, while delivery was down 1.5% in the quarter, indicating a shift in consumer preference [18] - The launch of the Parmesan Stuffed Crust Pizza is expected to drive future sales, although it had minimal impact in Q1 due to its late introduction [7][8] Market Data and Key Metrics Changes - The U.S. QSR pizza category was roughly flat to start the year, while Domino's outperformed with a 1.3% growth in retail sales [17][18] - International markets showed strength, particularly in Asia, driven by strong comps in India and Canada [20][21] Company Strategy and Development Direction - The "Hungry for More" strategy focuses on driving sales, store growth, and profits through innovation, operational excellence, and renowned value [5][6] - The company plans to launch at least two new products each year, with the Parmesan Stuffed Crust Pizza being a significant addition [6][7] - A partnership with DoorDash is expected to enhance delivery capabilities, with a national launch anticipated in May [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro backdrop but expressed confidence in achieving market share gains [5][16] - The company expects U.S. same-store sales to be around 3% for the year, with potential macro pressures impacting this guidance [22][75] - International same-store sales growth is expected to be between 1% to 2%, considering geopolitical and macroeconomic pressures [22][114] Other Important Information - The company repurchased approximately 115,000 shares at an average price of $434, totaling $50 million in Q1 [21] - Organizational changes were made to streamline operations, which included the elevation of key executives [13][14] Q&A Session Summary Question: Impact of geopolitical pressures on international markets - Management noted that geopolitical volatility could impact demand, which is reflected in the guidance of 1% to 2% growth for the year [26][27] Question: Incrementality expectations from DoorDash - Management expects DoorDash to contribute approximately 50% incrementally to sales, with expectations of higher performance compared to Uber Eats [30][31] Question: Performance of the stuffed crust pizza - The stuffed crust pizza has received positive customer feedback, and while it did not significantly impact Q1, it is expected to drive future sales [34][35] Question: Domestic unit growth guidance - The company maintains its guidance of adding 175 net stores in 2025, with franchisee enthusiasm remaining strong [55][56] Question: Carryout customer performance - The carryout business experienced a slight deceleration, attributed to timing and calendar shifts rather than a decline in customer interest [101][102] Question: International unit growth outlook - Management expressed optimism about international unit growth reacceleration, particularly as closures from Domino's Pizza Enterprises are mostly behind [93][96]