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.
Second Quarter
Two Fiscal Quarters
2025
2024
2025
2024
Global retail sales: (in millions of U.S. dollars)
U.S. stores
$
2,335.6
$
2,222.1
$
4,576.3
$
4,434.0
International stores
2,334.2
2,206.1
4,557.7
4,358.2
Total
$
4,669.8
$
4,428.2
$
9,134.0
$
8,792.2
Second Quarter
Two Fiscal Quarters
2025
2024
2025
2024
Global retail sales growth: (versus prior year period, excluding foreign currency impact)
U.S. stores
+ 5.1 %
+ 6.8 %
+ 3.2 %
+ 7.3 %
International stores
+ 6.0 %
+ 7.7 %
+ 7.1 %
+ 7.2 %
Total
+ 5.6 %
+ 7.2 %
+ 5.1 %
+ 7.3 %
Same store sales growth: (versus prior year period)
U.S. Company-owned stores
+ 2.6 %
+ 4.5 %
(0.2) %
+ 6.5 %
U.S. franchise stores
+ 3.4 %
+ 4.8 %
+ 1.5 %
+ 5.2 %
U.S. stores
+ 3.4 %
+ 4.8 %
+ 1.4 %
+ 5.2 %
International stores (excluding foreign currency impact)
+ 2.4 %
+ 2.1 %
+ 3.0 %
+ 1.5 %
U.S. Company-owned Stores
U.S. FranchiseStores
TotalU.S. Stores
InternationalStores
Total
Second quarter of 2025 store counts:
Store count at March 23, 2025
294
6,737
7,031
14,327
21,358
Openings
—
33
33
210
243
Closings
—
(3)
(3)
(62)
(65)
Transfers
(36)
36
—
—
—
Store count at June 15, 2025
258
6,803
7,061
14,475
21,536
Second quarter 2025 net store growth
—
30
30
148
178
Trailing four quarters net store growth
3
152
155
451
606
Second Quarter
Two Fiscal Quarters
(In millions, except percentages, percentage points, per share data and leverage ratio)
2025
2024
Increase/(Decrease)
2025
2024
Increase/(Decrease)
Total revenues
$1,145.1
$1,097.7
+ 4.3 %
$2,257.2
$2,182.4
+ 3.4 %
U.S. Company-owned store gross margin
15.6 %
17.6 %
(2.0) pp
15.8 %
17.5 %
(1.7) pp
Supply chain gross margin
11.8 %
11.3 %
+ 0.5 pp
11.7 %
11.2 %
+ 0.5 pp
Income from operations
$225.0
$196.1
+ 14.8 %
$435.1
$406.5
+ 7.0 %
Net income
$131.1
$142.0
(7.7) %
$280.7
$267.8
+ 4.8 %
Diluted earnings per share
$3.81
$4.03
(5.5) %
$8.14
$7.61
+ 7.0 %
Leverage ratio
4.7x
5.0x
(0.3)x
Net cash provided by operating activities
$366.9
$274.2
+ 33.8 %
Capital expenditures
(35.2)
(43.7)
(19.5) %
Free cash flow
$331.7
$230.5
+ 43.9 %
Revenues increased $47.4 million, or 4.3%, in the second quarter of 2025 as compared to the second quarter of 2024, primarily due to higher supply chain revenues, higher U.S. franchise royalties and fees and higher U.S. franchise advertising revenues. The increase in supply chain revenues was primarily attributable to an increase in the Company's food basket pricing to stores, which increased 4.8% during the second quarter of 2025 as compared to the second quarter of 2024, as well as higher order volumes. These increases were partially offset by a shift in the relative mix of products sold by the Company and the transition of the Company's equipment and supplies business to a third-party supplier. The increases in U.S. franchise royalties and fees and U.S. franchise advertising revenues were driven primarily by same store sales growth and net store growth during the trailing four quarters.
U.S. Company-owned store gross margin decreased 2.0 percentage points in the second quarter of 2025 as compared to the second quarter of 2024. This decrease was driven primarily by higher insurance costs and the increase in the Company's food basket pricing to stores. These decreases were partially offset by higher sales leverage.
Supply chain gross margin increased 0.5 percentage points in the second quarter of 2025 as compared to the second quarter of 2024, primarily due to procurement productivity, partially offset by the increase in the cost of the Company's food basket.
Income from operations increased $28.9 million, or 14.8%, in the second quarter of 2025 as compared to the second quarter of 2024. Excluding the negative impact of foreign currency exchange rates on international franchise royalty revenues of $0.2 million, income from operations increased $29.1 million, or 14.9%, in the second quarter of 2025 as compared to the second quarter of 2024. The increase in income from operations was primarily due to higher U.S. franchise royalties and fees, as well as gross margin dollar growth within supply chain. Additionally, general and administrative expenses were lower in the second quarter of 2025 primarily due to expenses related to the Company's Worldwide Rally in the second quarter of 2024 that takes place every two years, which did not reoccur in 2025. The increase in income from operations was also driven by a $3.9 million pre-tax refranchising gain associated with the refranchising of 36 U.S. Company-owned stores in the Maryland market.
Net income decreased $10.9 million, or 7.7%, in the second quarter of 2025 as compared to the second quarter of 2024, primarily due to an unfavorable change of $27.4 million in the pre-tax net realized and unrealized losses and gains associated with the Company's investment in DPC Dash Ltd. Higher provision for income taxes also contributed to the decrease in net income. The Company's provision for income taxes increased $12.1 million in the second quarter of 2025 due to a higher effective tax rate. The effective tax rate increased to 22.1% in the second quarter of 2025 as compared to 15.0% in the second quarter of 2024, driven primarily by a 6.8 percentage point unfavorable change in the impact of excess tax benefits from equity-based compensation.
Diluted EPS was $3.81 in the second quarter of 2025 as compared to $4.03 in the second quarter of 2024, representing a $0.22, or 5.5%, decrease. The decrease in diluted EPS in the second quarter of 2025 as compared to the second quarter of 2024 was driven by lower net income, partially offset by a lower weighted average diluted share count, resulting from the Company's share repurchases during the trailing four quarters.
Net cash provided by operating activities was $366.9 million in the two fiscal quarters of 2025 as compared to $274.2 million in the two fiscal quarters of 2024. The Company spent $35.2 million on capital expenditures in the two fiscal quarters of 2025 as compared to $43.7 million in the two fiscal quarters of 2024, resulting in free cash flow of $331.7 million in the two fiscal quarters of 2025 as compared to $230.5 million in the two fiscal quarters of 2024. The increase in free cash flow was a result of the positive impact of changes in operating assets and liabilities, the timing and amount of receipts for advertising contributions and the timing and amount of payments for advertising activities, as well as lower investments in capital expenditures.
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 ...
