Domino’s Pizza(US:DPZ)2026-02-23 14:32Financial Data and Key Metrics Changes - Income from operations increased by 7.3% in Q4, excluding foreign currency impact, primarily due to high U.S. franchise royalties and fees [20] - For fiscal 2025, income from operations increased by 8.1%, excluding a negative impact of $0.6 million from foreign currency and $4 million in refranchising gains [20] - Global retail sales grew by 4.9% in Q4 and 5.4% for the year, driven by positive U.S. and international comps and global net store growth [21] - U.S. same-store sales growth was 3% for the year, primarily driven by promotions and the successful launch of Parmesan Stuffed Crust pizza [22] Business Line Data and Key Metrics Changes - U.S. carryout comps were up 6.5%, while delivery was positive at 1.6% due to various initiatives [22] - The average U.S. franchisee store profitability increased to approximately $166,000, up $4,000 from the previous year [23] - Global net store growth included 172 net new stores in the U.S. and 604 internationally, with significant contributions from China and India [24] Market Data and Key Metrics Changes - The pizza category in the U.S. has generally grown at approximately 1%-2% per year, with Domino's gaining about 11 points of market share over the last 11 years [5][10] - The international business achieved 32 consecutive years of same-store sales growth in 2025, with expectations for continued growth in 2026 [17] Company Strategy and Development Direction - The company aims to double its retail sales from current levels, leveraging its strong brand and market position [8][56] - The "Hungry for MORE" strategy is focused on driving sales, store openings, market share, and profits through product innovations and value promotions [5][11] - The company plans to continue evolving its product offerings and enhancing its e-commerce platform to meet consumer demands [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for the QSR pizza category, despite a challenging macro environment [5][6] - The company expects U.S. same-store sales to grow by 3% in 2026, with continued pressure from the macro environment [25][26] - Management highlighted the importance of maintaining franchisee profitability and operational excellence as key drivers for future growth [12][20] Other Important Information - The company announced a 15% increase in its quarterly dividend and repurchased approximately 189,000 shares for a total of $80 million in Q4 [24] - The company expects capital expenditures to be approximately $120 million in 2026, with a return to $110 million in 2027 [28] Q&A Session Summary Question: Concerns about maintaining performance in 2026 - Management emphasized that past initiatives have long-term growth potential and that they will continue to innovate and drive efficiencies [32][33] Question: Contribution from existing initiatives versus new ones - Management indicated that existing initiatives will continue to drive growth, with new initiatives expected to compound over time [40][41] Question: Long-term sustainability of delivery growth - Management noted that they are not at their fair share in delivery and expect growth as they optimize their presence on aggregator platforms [49][50] Question: Performance of income cohorts - Management reported growth across all income cohorts, indicating resilience in their customer base [64] Question: Changes in technology stack - Management highlighted improvements in their e-commerce platform and store systems, aiming for real-time pizza making and delivery [70][71]