Domino’s Pizza (DPZ) investor relations material

Executive summary

• Global retail sales grew 3.4% year-over-year, with U.S. same-store sales up 0.9% and international same-store sales down 0.4% (excluding FX); net store growth was 180 globally, including 19 in the U.S. and 161 internationally.

• Income from operations increased 9.6% year-over-year; excluding a $3.6 million positive FX impact, the increase was 7.9%.

• Same-store sales growth in the U.S. was below expectations due to macro pressures, consumer uncertainty, and increased competition, especially in March.

• Competitive promotions from national pizza players pressured results, but long-term benefits are expected as competitors face profitability challenges and store closures.

• Continued execution of the Hungry for MORE strategy, including a fully launched new app and operational improvements, is expected to drive future growth.

Financial highlights

• Total revenues increased 3.5% to $1.15 billion year-over-year, driven by higher supply chain revenues and franchise royalties.

• Net income was $139.8 million, down 6.6% year-over-year, primarily due to a $30 million unfavorable change in unrealized investment gains/losses.

• Diluted EPS was $4.13, down from $4.33 in the prior year quarter.

• Gross margin improved to 40.4% from 39.8% year-over-year; supply chain gross margin rose to 12.2%.

• Operating cash flow was $162.0 million, down from $179.1 million year-over-year; free cash flow was $147.0 million.

Outlook and guidance

• U.S. and international same-store sales growth for 2026 now expected to be positive low single digits, reflecting a more challenging macro and competitive environment.

• Global retail sales growth projected to be mid-single digits for 2026.

• Operating income growth for 2026 expected to be mid- to high-single digits, excluding currency, refranchising gains, and aircraft sale gain.

• Net store growth guidance: 175+ in the U.S. and approximately 800 internationally.

• Management expects continued use of cash for working capital, investments, dividends, and share repurchases.