TLDR
- Domestic same-store sales increased 3.7% during Q4, surpassing analyst projections of 3.47%
- Total revenue reached $1.54B, representing a 6.4% year-over-year increase and exceeding forecasts by $20M
- Earnings per share registered at $5.35, marginally under the analyst consensus range of $5.37–$5.39
- The company boosted its quarterly dividend by over 14%, continuing its track record of regular increases
- Shares of DPZ jumped as much as 6% during Monday’s opening session after the announcement
Domino’s Pizza kicked off the week with impressive news. The global pizza chain delivered fourth-quarter financial results that propelled shares up nearly 6% at market open, powered by solid U.S. performance, a substantial dividend enhancement, and marking its 32nd straight year of positive international comparable store sales.
Comparable store sales in the United States climbed 3.7% during the quarter. This performance exceeded Wall Street’s projections of 3.47% expansion, supported by value-oriented promotional campaigns and fresh product launches.
The international segment painted a more nuanced picture. Comparable store sales growth registered at 0.7% for the period according to Investing.com, while Seeking Alpha reported 1.9%, both numbers reflecting headwinds in key territories including Australia and Japan where intense competition and subdued consumer appetite have created challenges.
Overall quarterly revenue climbed to $1.54 billion, marking a 6.4% year-over-year advancement. This figure exceeded analyst projections by approximately $20 million.
Per-share earnings settled at $5.35, up from $4.89 in the corresponding quarter last year — representing a 9.4% increase. However, it fell short of consensus forecasts, which varied between $5.37 and $5.39 across different analyst sources.
The improved profitability was partially attributed to $80 million in share repurchase activity throughout the year, which lowered the weighted average outstanding share count.
Dividend Boost
The pizza retailer elevated its quarterly dividend payment by 14.4%. This substantial increase accompanied what management characterized as company-wide earnings growth of 9%.
The revenue expansion benefited from a 1.7% uptick in food basket pricing, enhanced franchisee profitability, and stronger performance across both U.S. and international operations.
Margin Pressure
Not all metrics showed positive momentum. U.S. company-operated store gross margins contracted significantly, declining 540 basis points to 15.5%. The compression stemmed from elevated insurance costs, rising labor expenses, and increased food prices.
Conversely, the consolidated gross margin, encompassing global operations, demonstrated improvement — widening 50 basis points to 39.7%.
CEO Russell Weiner credited the company’s “Hungry for MORE” strategic initiative as the catalyst for the positive results. “In 2025 we demonstrated that when we execute our Hungry for MORE strategy, it delivers MORE sales, MORE stores, and MORE profits,” he stated.
Looking forward, Weiner indicated the organization anticipates “meaningfully increasing” its U.S. quick-service pizza market share throughout 2026.
Over the trailing 12-month period, DPZ stock has fallen 15.6%. During Monday’s premarket session, shares were changing hands at $403.04, representing a 4.8% gain at that time.
