TLDR
- DPZ stock climbed nearly 6% Monday after Q4 results topped revenue expectations
- U.S. same-store sales grew 3.7%, beating the analyst estimate of 3.47%
- Q4 revenue hit $1.54B, up 6.4% year-over-year and $20M above forecasts
- EPS of $5.35 grew 9.4% but missed the consensus estimate slightly
- Quarterly dividend raised 14.4%, marking another year of consecutive increases
Domino’s Pizza posted a strong fourth quarter, and Wall Street took notice. The stock jumped nearly 6% at Monday’s open and hit $403.04 in premarket trading, up 4.8% before the bell.
The results marked the company’s 32nd consecutive year of international same-store sales growth — a streak that doesn’t happen by accident.
U.S. same-store sales rose 3.7% for the quarter, clearing the analyst estimate of 3.47%. The beat was driven by value promotions and new menu additions that kept customer demand steady.
International same-store sales grew between 0.7% and 1.9% for the quarter depending on the data source, with softer performance in markets like Australia and Japan due to weaker demand and tougher competition.
Revenue and Earnings
Total Q4 revenue came in at $1.54 billion, a 6.4% increase year-over-year and roughly $20 million better than expected.
EPS landed at $5.35, up from $4.89 a year ago — a 9.4% increase. It came in just below the consensus estimate of $5.37 to $5.39. The stronger per-share figure was partly helped by $80 million in share buybacks during the year, which trimmed the weighted average share count.
Company-wide profits grew 9%, supported by a 1.7% increase in food basket pricing, higher franchisee profits, and improved sales across both markets.
Margin Squeeze
The U.S. company-owned store gross margin narrowed 540 basis points to 15.5%, hit by higher insurance, labor, and food costs.
Overall gross margin, which includes international operations, held up better — expanding 50 basis points to 39.7%.
Dividend Hike
Domino’s raised its quarterly dividend by 14.4%, a move that helped offset the slight EPS miss in the market’s eyes.
CEO Russell Weiner credited the company’s “Hungry for MORE” strategy. “In 2025 we demonstrated that when we execute our Hungry for MORE strategy, it delivers MORE sales, MORE stores, and MORE profits,” he said.
DPZ stock has declined 15.6% over the past 12 months heading into Monday’s session.
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