Domino’s Pizza Inc. reported fourth‑quarter and fiscal‑2025 results that surpassed revenue expectations but fell short of earnings estimates. Total revenue rose 6.4% year‑over‑year to $1.54 billion, while diluted earnings per share were $5.35, a miss of $0.03 to $0.04 against a consensus estimate of $5.38–$5.39. The company’s U.S. same‑store sales grew 3.7% in the quarter, beating the 3.47% estimate, whereas international same‑store sales increased 0.7%—below the 1.03%–1.07% forecast—continuing a 32‑year streak of international growth.
The revenue beat was driven by strong demand in the U.S. market and a 3.7% increase in same‑store sales, which outpaced analyst expectations. International sales, while still positive, lagged behind estimates, reflecting slower growth in overseas markets. Compared with the prior year’s Q4 revenue of $1.44 billion and EPS of $4.89, the company achieved a 6.4% revenue gain and a 9.4% EPS increase, underscoring solid top‑line momentum despite a modest earnings miss.
Margin performance highlighted a 5.4‑percentage‑point compression in U.S. company‑owned store gross margin, largely due to higher insurance costs, labor rates, and food basket pricing to stores. In contrast, supply‑chain gross margin edged up slightly, indicating that the company’s distribution operations remained efficient. The net income of $181.6 million and free cash flow of $671.5 million—up 31.2% year‑over‑year—reflect the company’s ability to generate cash even as store‑level margins tighten.
The company increased its quarterly dividend by 15% to $1.99 per share, its largest hike in history, and announced a $1.5 billion share‑repurchase program. CEO Russell Weiner said, "In 2025 we demonstrated that when we execute our Hungry for MORE strategy it delivers MORE sales, MORE stores, and MORE profits." He added, "In our international business, we delivered a remarkable 32nd consecutive year of same store sales growth," and "In our U.S. business, we gained another point of market share, pacing well ahead of the QSR Pizza category, which grew again in 2025." Weiner also noted, "These strong results flowed through to increased franchisee profits, showcasing our ability to drive store level profitability while providing incredible value for our customers." He concluded, "As we look ahead to 2026, it is our expectation that we will meaningfully increase our market share within a U.S. QSR pizza category that continues to grow."
Market reaction was positive, with the stock rising 5% to 6% in early trading on February 23 2026. The rally was driven by the revenue beat, robust U.S. same‑store sales growth, and the significant dividend increase. The EPS miss was considered a minor disappointment relative to the overall strength of the results.
The company’s guidance for 2026 remains optimistic, with Weiner emphasizing continued market‑share gains and the value and scale advantages that will differentiate Domino’s in a competitive fast‑food landscape. The company’s strategic focus on the "Hungry for MORE" campaign, new brand initiatives, and e‑commerce expansion positions it to sustain growth and shareholder returns in the coming years.
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