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Domino's Q2 Earnings Miss, Revenues Beat Estimates, Stock Up
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Key Takeaways
DPZ's Q2 EPS of $3.81 missed estimates and fell 5.5% year over year from $4.03.
Revenues rose 4.3% to $1.15B, beating estimates, driven by U.S. ad sales and supply-chain growth.
Global retail sales rose 5.6% and comps increased across the U.S. and international stores in the quarter.
Domino's Pizza, Inc. (DPZ - Free Report) reported second-quarter fiscal 2025 results. Its earnings missed the Zacks Consensus Estimate, while revenues beat the same.
Following the announcement, the company’s shares gained 5.3% in today’s pre-market trading session.
In the fiscal second quarter, the company saw revenue growth supported by several key factors. In the United States, both delivery and carryout channels experienced gains, helping the brand capture additional market share within the competitive pizza quick-service restaurant segment. The company completed its rollout across the two largest food delivery aggregators, which expanded customer reach and boosted order volumes.
DPZ's Q2 Earnings & Revenue Discussion
In the quarter, Domino's reported adjusted earnings per share (EPS) of $3.81, which lagged the Zacks Consensus Estimate of $3.93. The bottom line also declined 5.5% from $4.03 reported in the year-ago quarter.
Revenues of $1,145.1 million beat the consensus mark of $1,144 million. Moreover, the top line increased 4.3% on a year-over-year basis. This upside can be attributed to strong contributions from U.S. franchise advertising and higher supply-chain revenues.
In second-quarter fiscal 2025, Domino's had 178 net store openings.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Global retail sales (excluding foreign currency impact) rose 5.6% on a year-over-year basis. This upside was driven by a year-over-year increase in international (6%) and U.S. store sales (5.1%).
Comps at Domino’s domestic stores (including company-owned and franchise stores) rose 3.4% year over year. We estimated the metric to increase 6.7% year over year.
At domestic company-owned stores, Domino’s comps increased 2.6% compared with the 4.5% rise reported a year ago.
Domestic franchise store comps rose 3.4% compared with a 4.8% increase reported in the prior-year quarter.
Comps at international stores, excluding foreign currency translation, rose 2.4% compared with a 2.1% improvement reported in the prior-year quarter. We estimated the metric to increase 1% year over year.
DPZ’s Q2 Margins
In the fiscal second quarter, Domino’s gross margin expanded 70 basis points (bps) year over year to 40.1%. However, U.S. company-owned store gross margin contracted 200 bps year over year to 15.6%. This downside can be attributed to the increase in the company’s food basket pricing to stores and higher insurance costs.
Balance Sheet of DPZ
As of June 15, 2025, cash and cash equivalents totaled $272.9 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal second quarter totaled $3.83 billion, which was in line with fiscal 2024-end. Inventory amounted to $69.7 million compared with $70.9 million as of Dec. 31, 2024.
Capital expenditure at the end of the fiscal second quarter totaled $32.2 million, down from $43.7 million reported in the prior-year quarter.
During the reported quarter, the company repurchased 315,696 shares for an aggregated cost of $150 million. As of June 15, 2025, DPZ stated the availability of $614.3 million under its repurchase program.
Management declared a cash dividend of $1.74 per share. The dividend will be paid on Sept. 30, 2025, to its shareholders of record as of Sept. 15.
DPZ’s Zacks Rank
Domino's currently carries a Zacks Rank #3 (Hold).
Cracker Barrel has gained 24.2% in the year-to-date period. The Zacks Consensus Estimate for Cracker Barrel’s fiscal 2026 sales and EPS indicates growth of 1.8% and 9.4%, respectively, from the year-ago period’s levels.
McDonald's presently carries a Zacks Rank #2 (Buy). The stock has inched up 2.5% in the year-to-date period.
The Zacks Consensus Estimate for McDonald's 2025 sales and EPS implies growth of 1.9% and 4.8%, respectively, from the year-ago levels.
Yum! Brands presently carries a Zacks Rank #2. The stock has gained 11.1% in the year-to-date period.
The Zacks Consensus Estimate for Yum! Brands’ 2025 sales and EPS indicate an increase of 6.9% and 10%, respectively, from the year-ago levels.
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Domino's Q2 Earnings Miss, Revenues Beat Estimates, Stock Up
Key Takeaways
Domino's Pizza, Inc. (DPZ - Free Report) reported second-quarter fiscal 2025 results. Its earnings missed the Zacks Consensus Estimate, while revenues beat the same.
Following the announcement, the company’s shares gained 5.3% in today’s pre-market trading session.
In the fiscal second quarter, the company saw revenue growth supported by several key factors. In the United States, both delivery and carryout channels experienced gains, helping the brand capture additional market share within the competitive pizza quick-service restaurant segment. The company completed its rollout across the two largest food delivery aggregators, which expanded customer reach and boosted order volumes.
DPZ's Q2 Earnings & Revenue Discussion
In the quarter, Domino's reported adjusted earnings per share (EPS) of $3.81, which lagged the Zacks Consensus Estimate of $3.93. The bottom line also declined 5.5% from $4.03 reported in the year-ago quarter.
Revenues of $1,145.1 million beat the consensus mark of $1,144 million. Moreover, the top line increased 4.3% on a year-over-year basis. This upside can be attributed to strong contributions from U.S. franchise advertising and higher supply-chain revenues.
In second-quarter fiscal 2025, Domino's had 178 net store openings.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc Quote
DPZ’s Other Metrics
Global retail sales (excluding foreign currency impact) rose 5.6% on a year-over-year basis. This upside was driven by a year-over-year increase in international (6%) and U.S. store sales (5.1%).
Comps at Domino’s domestic stores (including company-owned and franchise stores) rose 3.4% year over year. We estimated the metric to increase 6.7% year over year.
At domestic company-owned stores, Domino’s comps increased 2.6% compared with the 4.5% rise reported a year ago.
Domestic franchise store comps rose 3.4% compared with a 4.8% increase reported in the prior-year quarter.
Comps at international stores, excluding foreign currency translation, rose 2.4% compared with a 2.1% improvement reported in the prior-year quarter. We estimated the metric to increase 1% year over year.
DPZ’s Q2 Margins
In the fiscal second quarter, Domino’s gross margin expanded 70 basis points (bps) year over year to 40.1%. However, U.S. company-owned store gross margin contracted 200 bps year over year to 15.6%. This downside can be attributed to the increase in the company’s food basket pricing to stores and higher insurance costs.
Balance Sheet of DPZ
As of June 15, 2025, cash and cash equivalents totaled $272.9 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal second quarter totaled $3.83 billion, which was in line with fiscal 2024-end. Inventory amounted to $69.7 million compared with $70.9 million as of Dec. 31, 2024.
Capital expenditure at the end of the fiscal second quarter totaled $32.2 million, down from $43.7 million reported in the prior-year quarter.
During the reported quarter, the company repurchased 315,696 shares for an aggregated cost of $150 million. As of June 15, 2025, DPZ stated the availability of $614.3 million under its repurchase program.
Management declared a cash dividend of $1.74 per share. The dividend will be paid on Sept. 30, 2025, to its shareholders of record as of Sept. 15.
DPZ’s Zacks Rank
Domino's currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) , McDonald's Corporation (MCD - Free Report) and Yum! Brands, Inc. (YUM - Free Report) .
Cracker Barrel currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cracker Barrel has gained 24.2% in the year-to-date period. The Zacks Consensus Estimate for Cracker Barrel’s fiscal 2026 sales and EPS indicates growth of 1.8% and 9.4%, respectively, from the year-ago period’s levels.
McDonald's presently carries a Zacks Rank #2 (Buy). The stock has inched up 2.5% in the year-to-date period.
The Zacks Consensus Estimate for McDonald's 2025 sales and EPS implies growth of 1.9% and 4.8%, respectively, from the year-ago levels.
Yum! Brands presently carries a Zacks Rank #2. The stock has gained 11.1% in the year-to-date period.
The Zacks Consensus Estimate for Yum! Brands’ 2025 sales and EPS indicate an increase of 6.9% and 10%, respectively, from the year-ago levels.