Big Deals And Stuffed Crust Keep Domino's Customers Coming Back

Domino’s Pizza Inc (NASDAQ:DPZ) shares are trading higher in the premarket session on Tuesday.

The company reported third-quarter earnings per share of $4.08, beating the analyst consensus estimate of $3.96. Quarterly sales of $1.147 billion (+6.2% year over year) outpaced the Street view of $1.137 billion.

Sales grew on the back of higher supply chain revenues and higher U.S. franchise royalties and fees and advertising revenues.

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International same-store sales rose 1.7% on a currency-neutral basis.

The company added a net 214 stores worldwide, with 29 openings in the U.S. and 185 internationally.

“In the U.S., we drove positive order counts behind our Best Deal Ever promotion and stuffed crust pizza product innovation for the third quarter,” said Russell Weiner, Domino’s chief executive officer.

Domino’s reported global retail sales growth of 6.3% excluding foreign currency effects. U.S. same-store sales increased by 5.2% in the quarter.

Sales of U.S. stores rose 7% year over year to $2.320 billion, and international stores sale grew 5.7% year over year to $2.375 billion.

Income from operations rose to $223.2 million in the third quarter of 2025 from $198.8 million in the year-ago period, a 12.2% year-over-year increase.

Gross margin in the quarter under review expanded to 40.1% from 39.2% a year ago.

U.S. Company-owned store gross margin slightly contracted to 16.3% from 16.8% in the year-ago period.

Supply chain gross margin expanded to 11.3% from 10.6% in the year-ago period.

Cash Flow and Debt Management

The company exited the quarter with cash and equivalents worth $139.728 million.

Domino’s had free cash flow of $495.6 million in the three fiscal quarters of 2025 as compared to $376.1 million in the three fiscal quarters of 2024. The company said that the increase in free cash flow was a result of the positive impact of changes in operating assets and liabilities, as well as lower investments in capital expenditures.

On October 7, the company declared a $1.74 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 15, to be paid on December 26.

On September 5, the company closed a $1.0 billion refinancing by issuing $500 million 4.930% five-year and $500 million 5.217% seven-year senior secured notes.

Using those proceeds plus $160 million in cash, it repaid $742 million of 2015 notes and $402.7 million of 2018 notes, while prefunding some interest and covering $15.4 million of financing costs.

Long-term debt (less current portion) expanded to $4.810 billion as of quarter end, higher than $3.825 billion a year ago.

Price Action: DPZ shares were trading higher by 4.10% to $425.00 premarket at last check Tuesday.

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