Domino's Q4 Earnings Miss Estimates, Revenues Beat, Stock Up

Domino's Pizza, Inc. DPZ reported fourth-quarter fiscal 2025 results with earnings missing the Zacks Consensus Estimate but increasing on a year-over-year basis. However, total revenues surpassed the estimate and increased from the prior year's reported figure. Following the announcement, the company’s shares gained 5.6% in the pre-market trading session.

Domino’s fourth-quarter results were underpinned by robust top-line momentum, franchise-led expansion and effective operating leverage. This performance was further bolstered by growth in operating income, driven by higher franchise royalties, increased fees and enhanced gross margin dollars within the company’s supply chain. Furthermore, the company successfully scaled its global footprint through consistent net new store openings throughout the quarter.

Management emphasized that DPZ’s strategic consistency and execution excellence position it to capture additional QSR pizza market share globally in 2025 and beyond, while expanding long-term value for franchisees and shareholders.

DPZ's Q4 Earnings & Revenue Discussion

In the quarter under discussion, Domino's reported adjusted earnings per share (EPS) of $5.35, missing the Zacks Consensus Estimate of $5.38. The bottom line rose 9.4% from $4.89 reported in the year-ago quarter.

Domino's Pizza Inc Price, Consensus and EPS Surprise

Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc Quote

Revenues of $1,535.7 million beat the consensus mark of $1,516 million. Moreover, the top line increased 6.4% on a year-over-year basis. This upside is driven by strong contributions from U.S. franchise royalties and fees and higher supply-chain revenues.

In fourth-quarter fiscal 2025, Domino's had 392 net store openings.

DPZ’s Other Metrics

Global retail sales (excluding foreign currency impact) rose 4.9% on a year-over-year basis. This upside was driven by a year-over-year increase in international (4.5%) and U.S. store sales (5.5%).

Comps at Domino’s domestic stores (including company-owned and franchise stores) rose 3.7% year over year. We estimated the metric to increase 2.5% year over year.

At domestic company-owned stores, Domino’s comps increased 2.7% compared with the 0.7% decline reported a year ago. We estimated the metric to increase 1.3% year over year.

Domestic franchise store comps rose 3.7% compared with a 0.5% increase reported in the prior-year quarter. We estimated the metric to increase 2.5% year over year.

Comps at international stores, excluding foreign currency translation, rose 0.7% compared with a 2.7% improvement reported in the prior-year quarter. We estimated the metric to increase 0.1% year over year.

DPZ’s Q4 Margins

In the fiscal fourth quarter, Domino’s gross margin expanded 50 basis points (bps) year over year to 39.7%. However, the U.S. company-owned store gross margin contracted 540 bps year over year to 10.1%. This downside can be attributed to the increase in the company’s food basket pricing to stores, higher insurance costs and higher wage costs.

Balance Sheet of DPZ

As of Dec. 28, 2025, cash and cash equivalents totaled $125.7 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal fourth quarter totaled $4.81 billion compared with $3.83 billion reported in the previous quarter. Inventory amounted to $79.2 million compared with $70.9 million as of Dec. 31, 2024.

Capital expenditure at the end of the fiscal fourth quarter totaled $120.6 million, up from $112.9 million reported in the prior-year quarter.

During the reported quarter, the company repurchased 188,526 shares for an aggregate cost of $80 million. As of Dec. 28, 2025, DPZ stated the availability of $459.7 million under its repurchase program.

Management declared a cash dividend of $1.99 per share. The dividend will be paid on March 30, 2026, to its shareholders of record as of March. 15.

DPZ’s 2025 Highlights

Total revenues for 2025 came in at $4.94 billion compared with $4.71 billion reported in 2024.

Net income in 2025 came in at $601.7 million compared with $584.2 million reported in 2024.

In 2025, adjusted EPS came in at $17.57 compared with $16.69 reported in the previous year.

DPZ’s Zacks Rank & Key Picks

Domino's currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Zacks Retail-Wholesale sector:

Expedia Group, Inc. EXPE flaunts a Zacks Rank of 1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 3%, on average. EXPE stock has declined 11.9% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 7.5% and 20.7%, respectively, from the prior-year levels.

Brinker International EAT presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 8.2%, on average. EAT stock has lost 9.1% in the past six months.

The Zacks Consensus Estimate for Brinker’s fiscal 2026 sales and EPS indicates growth of 7.9% and 19.8%, respectively, from the year-ago period’s levels.

Dillard's DDS carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has climbed 17.9% in the past six months.

The Zacks Consensus Estimate for Dillard’s fiscal 2026 sales indicates growth of 1.1%, while EPS indicates a decline of 9.4% from the year-ago period’s levels.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include

Stock #1: A Disruptive Force with Notable Growth and Resilience

Stock #2: Bullish Signs Signaling to Buy the Dip

Stock #3: One of the Most Compelling Investments in the Market

Stock #4: Leader In a Red-Hot Industry Poised for Growth

Stock #5: Modern Omni-Channel Platform Coiled to Spring

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research