Latest news with #DominosPizza
Yahoo
2 days ago
- Business
- Yahoo
Domino's Pizza Inc (DPZ) Q2 2025 Earnings Call Highlights: Strong Growth in US and ...
Income from Operations: Increased 14.9% in Q2, excluding foreign currency impact. Global Retail Sales Growth: 5.6% in Q2, excluding foreign currency impact. US Retail Sales Growth: 5.1% in Q2, driven by same-store sales and net store growth. Same-Store Sales Growth: 3.4% in the US for Q2. Carryout Comps: Increased 5.8% in Q2. Delivery Growth: Positive 1.5% in Q2. Net New Stores in the US: Added 30, bringing the total to 7,061. International Retail Sales Growth: 6% in Q2, excluding foreign currency impact. International Same-Store Sales Growth: 2.4% in Q2. Net Store Growth Internationally: 148 new stores in Q2. Share Repurchase: Approximately 316,000 shares repurchased at an average price of $475, totaling $150 million. Refranchising Gain: $3.9 million pre-tax gain from refranchising 36 company-owned stores. Warning! GuruFocus has detected 4 Warning Signs with AGYS. Release Date: July 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Domino's Pizza Inc (NASDAQ:DPZ) reported strong results in the second quarter, with positive growth in both delivery and carryout businesses in the US. The launch of the Parmesan Stuffed Crust Pizza has been successful, attracting new customers and meeting high expectations. The company completed a national rollout with DoorDash, which is expected to be a significant driver of US sales in the latter half of the year. Domino's rewards program continues to grow, contributing positively to the company's comps, particularly in the carryout business. The refranchising of 36 company-owned stores in Maryland resulted in a pre-tax gain, strengthening the brand's position for long-term success. Negative Points The macroeconomic environment remains challenging, impacting financial results despite profit growth slightly ahead of expectations. Foreign currency fluctuations are expected to be a headwind, potentially impacting operating income growth. The international same-store sales growth is expected to be modest due to potential global macro and geopolitical uncertainties. The company faces pressure from a flat QSR pizza category, which could challenge sustained growth in the future. Corporate store margins were impacted by an insurance charge, highlighting potential vulnerabilities in the company's cost structure. Q & A Highlights Q: How does Domino's plan to sustain a 3% plus comp growth in the long term, given the current initiatives like Stuffed Crust and third-party marketing? A: Russell Weiner, CEO, emphasized that Domino's has consistently gained market share over the past decade, and the current initiatives like partnerships with aggregators and new product launches are not one-time events but part of a long-term strategy. The company has built a strong arsenal of tools, including a new loyalty program and e-commerce platform, to continue driving growth and capturing market share. Q: Can you provide more details on the US sales outlook for the second half of the year and the impact of initiatives like DoorDash and loyalty programs? A: Russell Weiner, CEO, mentioned that initiatives such as the "Best Deal Ever" promotion and the full rollout of DoorDash are expected to drive sales in the second half. Sandeep Reddy, CFO, added that the carryout business is performing well, supported by the loyalty program, and both delivery and carryout are expected to be positive for the year. Q: How does Domino's view the potential for DoorDash as a growth vehicle in the coming years? A: Russell Weiner, CEO, explained that Domino's aims to achieve its fair share on aggregator platforms like DoorDash and Uber Eats. The company sees significant potential for growth on these platforms, expecting to match its market share outside of aggregators over time. Q: What is the status of international market share gains, particularly in top markets like India? A: Russell Weiner, CEO, highlighted India as a success story, with strong adoption of the Hungry for MORE strategy. Initiatives like new product launches and operational excellence are driving growth. Sandeep Reddy, CFO, added that other markets like Canada and Mexico are also performing well, with strong adoption of the strategy. Q: How is Domino's addressing the current value-focused environment in the US pizza segment? A: Russell Weiner, CEO, stated that Domino's is well-positioned to thrive in a value-focused environment due to its strong franchisee economics, supply chain efficiencies, and large advertising budget. The company views consumer demand for value as an opportunity to gain market share, as it is better equipped than competitors to offer value while maintaining profitability. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
Domino's Pizza (NASDAQ:DPZ) shareholders have earned a 7.8% CAGR over the last three years
Buying a low-cost index fund will get you the average market return. But across the board there are plenty of stocks that underperform the market. That's what has happened with the Domino's Pizza, Inc. (NASDAQ:DPZ) share price. It's up 20% over three years, but that is below the market return. Zooming in, the stock is up a respectable 12% in the last year. So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Domino's Pizza was able to grow its EPS at 10% per year over three years, sending the share price higher. This EPS growth is higher than the 6% average annual increase in the share price. So it seems investors have become more cautious about the company, over time. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that Domino's Pizza has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Domino's Pizza will grow revenue in the future. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Domino's Pizza the TSR over the last 3 years was 25%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! A Different Perspective Domino's Pizza provided a TSR of 14% over the last twelve months. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 5% over half a decade It is possible that returns will improve along with the business fundamentals. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Domino's Pizza you should be aware of. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 登入存取你的投資組合
Yahoo
3 days ago
- Business
- Yahoo
Domino's Pizza shares rise as U.S. same-store sales growth tops 3%
-- Domino's Pizza, Inc. reported second-quarter earnings that missed analyst expectations despite solid sales growth, with shares rising 2.7% following the announcement. The world's largest pizza company posted adjusted earnings per share of $3.81 for the second quarter, falling short of analyst estimates of $3.94. Revenue came in at $1.15 billion, matching consensus expectations and representing a 4.3% increase from the same period last year. U.S. same-store sales grew 3.4% in the quarter, while international same-store sales rose 2.4% excluding foreign currency impact. The company's global retail sales increased 5.6% excluding foreign currency effects compared to the same quarter last year. "Our team delivered strong Q2 results," said Russell Weiner, Domino's Chief Executive Officer. "Internationally, we continued to grow despite macro challenges. In the U.S., both delivery and carryout grew, driving meaningful market share gains within the U.S. pizza QSR category." The company's income from operations increased 14.8% to $225 million. However, net income decreased 7.7% to $131.1 million, primarily due to an unfavorable change in pre-tax net realized and unrealized losses associated with the company's investment in DPC Dash Ltd, as well as a higher effective tax rate. The company's board declared a quarterly dividend of $1.74 per share to be paid on September 30. During the quarter, Domino's repurchased and retired 315,696 shares of common stock for $150 million, with $614.3 million remaining in its share repurchase authorization. Related articles Domino's Pizza shares rise as U.S. same-store sales growth tops 3% Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett After soaring 149%, this stock is back in our AI's favor - & already +25% in July Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Domino's Pizza: Q2 Earnings Snapshot
ANN ARBOR, Mich. (AP) — ANN ARBOR, Mich. (AP) — Domino's Pizza Inc. (DPZ) on Monday reported second-quarter earnings of $131.1 million. The Ann Arbor, Michigan-based company said it had net income of $3.81 per share. The results missed Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $3.93 per share. The pizza chain posted revenue of $1.15 billion in the period, beating Street forecasts. Nine analysts surveyed by Zacks expected $1.14 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on DPZ at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
3 days ago
- Business
- Associated Press
Domino's Pizza® Announces Second Quarter 2025 Financial Results
Global retail sales growth (excluding foreign currency impact) of 5.6% U.S. same store sales growth of 3.4% International same store sales growth (excluding foreign currency impact) of 2.4% Global net store growth of 178, including 30 net store openings in the U.S. and 148 net store openings internationally Income from operations increased 14.8%; excluding the $0.2 million negative impact of foreign currency exchange rates on international franchise royalty revenues, income from operations increased 14.9% ANN ARBOR, Mich., July 21, 2025 /PRNewswire/ -- Domino's Pizza, Inc. (Nasdaq: DPZ), the largest pizza company in the world, announced results for the second quarter of 2025. 'Our team delivered strong Q2 results,' said Russell Weiner, Domino's Chief Executive Officer. 'Internationally, we continued to grow despite macro challenges. In the U.S., both delivery and carryout grew, driving meaningful market share gains within the U.S. pizza QSR category. We are now fully rolled out on the two largest aggregators and offer all the major crust types, including stuffed crust. With what we believe are best-in-class unit economics, the largest advertising budget, a robust supply chain, and a rewards program that is bigger than ever, our business is well-positioned. We've never had more tools to drive long-term value creation for our franchisees and shareholders.' Second Quarter 2025 Operational and Financial Highlights (Unaudited): The tables below outline certain statistical measures utilized by the Company to analyze its performance, as well as key financial results. This historical data is not necessarily indicative of results to be expected for any future period. Refer to Comments on Regulation G below for additional details, including definitions of these statistical measures and certain reconciliations. Quarterly Dividend Subsequent to the end of the second quarter of 2025, on July 15, 2025, the Company's Board of Directors declared a $1.74 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2025, to be paid on September 30, 2025. Share Repurchases During the second quarter of 2025, the Company repurchased and retired 315,696 shares of common stock for a total of $150.0 million. During the two fiscal quarters of 2025, the Company repurchased and retired 430,976 shares of common stock for a total of $200.0 million. As of June 15, 2025, the Company had a total remaining authorized amount for share repurchases of $614.3 million. Comments on Regulation G In addition to the GAAP financial measures set forth in this press release, the Company has included non-GAAP financial measures within the meaning of Regulation G, including free cash flow, income from operations, excluding foreign currency impact and Consolidated Adjusted EBITDA. The Company has also included metrics such as global retail sales, global retail sales growth (excluding foreign currency impact), same store sales growth, net store growth, food basket pricing change, impact of changes in foreign currency exchange rates on international franchise royalty revenues and the leverage ratio, which are commonly used statistical measures in the quick-service restaurant industry that are important to understanding Company performance. The Company uses 'global retail sales,' a statistical measure, to refer to total worldwide retail sales at Company-owned and franchise stores. The Company believes global retail sales information is useful in analyzing revenues because franchisees pay royalties and advertising fees that are based on a percentage of franchise retail sales. The Company reviews comparable industry global retail sales information to assess business trends and to track the growth of the Domino's Pizza brand and believes they are indicative of the financial health of the Company's franchisee base. In addition, supply chain revenues are directly impacted by changes in franchise retail sales in the U.S. and Canada. As a result, sales by Domino's franchisees have a direct effect on the Company's profitability. Retail sales for franchise stores are reported to the Company by its franchisees and are not included in Company revenues. 'Global retail sales growth' is calculated as the change of U.S. Dollar global retail sales against the comparable period of the prior year. 'Global retail sales growth, excluding foreign currency impact' is calculated as the change of international local currency global retail sales against the comparable period of the prior year. Changes in global retail sales growth, excluding foreign currency impact, are primarily driven by same store sales growth and net store growth. The Company uses 'same store sales growth,' a statistical measure, which is calculated by including only retail sales from stores that also had sales in the comparable weeks of both periods. International same store sales growth is calculated similarly to U.S. same store sales growth. Changes in international same store sales are reported excluding foreign currency impacts, which reflect changes in international local currency sales. Same store sales growth for transferred stores is reflected in their current classification. The Company uses 'net store growth,' a statistical measure, which is calculated by netting gross store openings with gross store closures during the period. Transfers between Company-owned stores and franchised stores are excluded from the calculation of net store growth. The Company uses 'food basket pricing change,' a statistical measure, which is calculated as the percentage change of the food basket (including both food and cardboard products) purchased by an average U.S. store (based on average weekly unit sales) from U.S. supply chain centers against the comparable period of the prior year. The Company believes that the food basket pricing change is important to investors and other interested persons to understand the Company's performance. As food basket prices fluctuate, revenues, cost of sales and gross margin percentages in the Company's supply chain segment also fluctuate. Additionally, cost of sales, gross margins and gross margin percentages for the Company's U.S. Company-owned stores also fluctuate. The Company uses 'free cash flow,' which is calculated as net cash provided by operating activities, less capital expenditures, both as reported under GAAP. The most directly comparable financial measure calculated and presented in accordance with GAAP is net cash provided by operating activities. The Company believes that the free cash flow measure is important to investors and other interested persons, and that such persons benefit from having a measure which communicates how much cash flow is available for working capital needs or to be used for repurchasing debt, making acquisitions, repurchasing common stock or paying dividends. The Company uses 'income from operations, excluding foreign currency impact,' which is calculated as income from operations as reported under GAAP, less the 'impact of changes in foreign currency exchange rates on international franchise royalty revenues,' a statistical measure. The most directly comparable financial measure calculated and presented in accordance with GAAP is income from operations. The impact of changes in foreign currency exchange rates on international franchise royalty revenues is calculated as the difference in international franchise royalty revenues resulting from translating current period local currency results to U.S. dollars at current period exchange rates as compared to prior period exchange rates. The Company believes that the impact of changes in foreign currency exchange rates on international franchise royalty revenues is important to investors and other interested persons to understand the Company's international royalty revenues given the significant variability in those revenues and that can be driven by changes in foreign currency exchanges rates. International franchise royalty revenues do not have a cost of sales component, so changes in these revenues have a direct impact on income from operations. The Company uses 'Consolidated Adjusted EBITDA,' which is calculated as Segment Income as defined by the Company under Accounting Standards Codification 280, Segment Reporting, less corporate administrative costs that have not been allocated to a reportable segment including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Consolidated Adjusted EBITDA is defined in the base indenture governing the Company's securitized debt. The Company uses Consolidated Adjusted EBITDA to determine future business objectives and targets and for long-range planning, as well as to evaluate total Company operating performance for the purposes of determining certain variable performance-based compensation. The Company believes Consolidated Adjusted EBITDA is a reliable barometer for the overall success of the Company. It is also used to calculate the leverage ratio (defined below), and other ratios defined in the indenture governing the Company's securitized debt. As such, Consolidated Adjusted EBITDA is important to investors and other interested persons to understand the financial performance of the Company, and to assess the ability of the Company to meet its financial obligations. The Company uses the 'leverage ratio1,' which is calculated as the Company's securitized debt related to its fixed-rate notes from the recapitalizations completed in 2021, 2019, 2018, 2017 and 2015 and borrowings under its variable funding notes, divided by Consolidated Adjusted EBITDA on a trailing four quarters basis. The Company has historically operated with a leverage ratio between four and six times. The Company reviews its leverage ratio on at least a quarterly basis and believes its leverage ratio is important to investors and other interested persons to understand the capital structure of the Company, and to assess the ability of the Company to meet its financial obligations. The reconciliation of the leverage ratio for the second quarters of 2025 and 2024 is as follows below. Conference Call Information The Company will file its Quarterly Report on Form 10-Q today. As previously announced, Domino's Pizza, Inc. will hold a conference call today at 8:30 a.m. (Eastern) to review its second quarter 2025 financial results. The webcast is available at and will be archived for one year. About Domino's Pizza® Founded in 1960, Domino's Pizza is the largest pizza company in the world, with a significant business in both delivery and carryout. It ranks among the world's top public restaurant brands with a global enterprise of more than 21,500 stores in over 90 markets. Domino's had global retail sales of over $19.4 billion in the trailing four quarters ended June 15, 2025. Its system is comprised of independent franchise owners who accounted for 99% of Domino's stores as of the end of the second quarter of 2025. In the U.S., Domino's generated more than 85% of U.S. retail sales in 2024 via digital channels and has developed many innovative ordering platforms. Order – Company Info – Media Assets – Please visit our Investor Relations website at to view news, announcements, earnings releases, investor presentations and conference webcasts. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This press release contains various forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995 (the 'Act') that are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. The following cautionary statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the 'safe harbor' provisions of the Act. You can identify forward-looking statements by the use of words such as 'anticipates,' 'believes,' 'could,' 'should,' 'estimates,' 'expects,' 'intends,' 'may,' 'will,' 'plans,' 'predicts,' 'projects,' 'seeks,' 'approximately,' 'potential,' 'outlook' and similar terms and phrases that concern our strategy, plans or intentions, including references to assumptions. These forward-looking statements address various matters including information concerning future results of operations and business strategy, our anticipated profitability, estimates in same store sales growth, store growth and the growth of our U.S. and international business in general, our ability to service our indebtedness, our future cash flows, our operating performance, trends in our business and other descriptions of future events reflect the Company's expectations based upon currently available information and data. While we believe these expectations and projections are based on reasonable assumptions, such forward-looking statements are inherently subject to risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from our expectations are more fully described in our filings with the Securities and Exchange Commission, including under the section headed 'Risk Factors' in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors, including but not limited to: our substantial indebtedness as a result of our recapitalization transactions and our ability to incur additional indebtedness or refinance or renegotiate key terms of that indebtedness in the future; the impact a downgrade in our credit rating may have on our business, financial condition and results of operations; our future financial performance and our ability to pay principal and interest on our indebtedness; the strength of our brand, including our ability to compete in the U.S. and internationally in our intensely competitive industry, including the food service and food delivery markets; our ability to successfully implement our growth strategy, including through our participation in the third-party order aggregation marketplace; labor shortages or changes in operating expenses resulting from increases in prices of food (particularly cheese), fuel and other commodity costs, labor, utilities, insurance, employee benefits and other operating costs or negative economic conditions; the effectiveness of our advertising, operations and promotional initiatives; shortages, interruptions or disruptions in the supply or delivery of fresh food products and store equipment; the additional risks our international operations subject us to, which may differ in each country in which we and our franchisees do business; our ability and that of our franchisees to successfully operate in the current and future credit environment; the impact of social media or a boycott on our business, brand and reputation; the impact of new or improved technologies and alternative methods of delivery on consumer behavior; new product, digital ordering and concept developments by us, and other food-industry competitors; our ability to maintain good relationships with and attract new franchisees, and franchisees' ability to successfully manage their operations without negatively impacting our royalty payments and fees or our brand's reputation; our ability to successfully implement cost-saving strategies; changes in the level of consumer spending given general economic conditions, including interest rates, energy prices and consumer confidence or negative economic conditions in general; our ability and that of our franchisees to open new restaurants and keep existing restaurants in operation and maintain demand for new stores; the impact that widespread illness, health epidemics or general health concerns, severe weather conditions and natural disasters may have on our business and the economies of the countries where we operate; changes in foreign currency exchange rates; changes in income tax rates; our ability to retain or replace our executive officers and other key members of management and our ability to adequately staff our stores and supply chain centers with qualified personnel; our ability to find and/or retain suitable real estate for our stores and supply chain centers; changes in government legislation and regulations, including changes in laws and regulations regarding information privacy, payment methods, advertising and consumer protection and social media; adverse legal judgments or settlements; food-borne illness or contamination of products or food tampering or other events that may impact our reputation; data breaches, power loss, technological failures, user error or other cyber risks threatening us or our franchisees; the impact that environmental, social and governance matters may have on our business and reputation; the effect of war, terrorism, catastrophic events, other geopolitical or reputational considerations or climate change; our ability to pay dividends and repurchase shares; changes in consumer tastes, spending and traffic patterns and demographic trends; changes in accounting policies; and adequacy of our insurance coverage. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. All forward-looking statements speak only as of the date of this press release and should be evaluated with an understanding of their inherent uncertainty. Except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission, or other applicable law, we will not undertake, and specifically disclaim, any obligation to publicly update or revise any forward-looking statements to reflect events or circumstances arising after the date of this press release, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on the forward-looking statements included in this press release or that may be made elsewhere from time to time by, or on behalf of, us. All forward-looking statements attributable to us are expressly qualified by these cautionary statements. 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