Quick Summary
- Domestic comparable store sales increased 3.7% during Q4, surpassing Wall Street projections of 3.47%
- Total quarterly revenue reached $1.54B, representing a 6.4% annual increase and exceeding forecasts by $20M
- Earnings per share of $5.35 fell just short of analyst consensus ranging from $5.37 to $5.39
- The company announced a dividend increase exceeding 14%, continuing its track record of shareholder returns
- Shares of DPZ jumped nearly 6% during Monday’s opening session after the earnings release
Domino’s Pizza kicked off Monday with notable momentum. The global pizza chain released fourth-quarter financials that propelled shares up almost 6% at market open, powered by robust U.S. performance, an enhanced dividend payout, and marking 32 straight years of positive international comparable sales growth.
Domestic comparable store sales advanced 3.7% during the three-month period. This performance exceeded Wall Street’s 3.47% growth projection, with value-oriented promotions and fresh menu offerings driving customer traffic.
The international segment presented a more mixed picture. Comparable sales growth registered at 0.7% for the quarter according to Investing.com, while Seeking Alpha reported 1.9%, both numbers reflecting challenges in key markets including Australia and Japan where heightened competition and weakening consumer demand created headwinds.
Quarterly revenue totaled $1.54 billion, marking a 6.4% gain versus the prior-year period. This figure exceeded analyst projections by approximately $20 million.
Per-share earnings came in at $5.35, climbing from $4.89 in the year-ago quarter — representing 9.4% growth. However, this result slightly trailed the Street’s consensus estimate, which sat between $5.37 and $5.39 across different sources.
The improved bottom line benefited from $80 million in stock repurchases executed throughout the year, which lowered the weighted average diluted share count.
Enhanced Shareholder Payout
The company increased its quarterly dividend by 14.4%. This substantial raise accompanied what management characterized as 9% company-wide profit expansion.
The revenue increase reflected a 1.7% rise in food basket pricing, stronger franchisee profitability, and sales momentum across both domestic and overseas operations.
Profitability Challenges
Some metrics moved in the opposite direction. Gross margin for U.S. company-operated stores contracted significantly, dropping 540 basis points to reach 15.5%. Elevated costs for insurance, wages, and food ingredients drove the compression.
The consolidated gross margin, encompassing global operations, showed improvement — rising 50 basis points to 39.7%.
Chief Executive Russell Weiner credited the company’s “Hungry for MORE” strategic framework for driving the quarterly performance. “In 2025 we demonstrated that when we execute our Hungry for MORE strategy, it delivers MORE sales, MORE stores, and MORE profits,” he stated.
Weiner indicated the company anticipates “meaningfully increasing” its U.S. quick-service pizza market share during 2026.
Shares of DPZ have fallen 15.6% over the trailing twelve months. The stock changed hands at $403.04 during premarket trading Monday, representing a 4.8% gain at that juncture.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
