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Domino's Q3 Earnings & Revenues Beat Estimates, Stock Up
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Key Takeaways
DPZ's Q3 EPS of $4.08 topped estimates, while revenues rose 6.2% year over year to $1.15B.
U.S. comps climbed 5.2% with strong gains from stuffed-crust innovation and key promotions.
Domino's opened 214 new stores, boosted global retail sales 6.3% and declared a $1.74 dividend.
Domino's Pizza, Inc. (DPZ - Free Report) reported third-quarter fiscal 2025 results with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure. Following the announcement, the company’s shares gained 4% in the pre-market trading session.
In the fiscal third quarter, Domino’s achieved positive order growth in the United States, supported by the success of its “Best Deal Ever” promotion and innovation around stuffed-crust pizza. These initiatives fueled strong momentum across both delivery and carryout channels. Management emphasized that the company’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 Q3 Earnings & Revenue Discussion
In the quarter under discussion, Domino's reported adjusted earnings per share (EPS) of $4.08, beating the Zacks Consensus Estimate of $3.99. The bottom line declined 2.6% from $4.19 reported in the year-ago quarter.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Revenues of $1,147.1 million beat the consensus mark of $1,139 million. Moreover, the top line increased 6.2% 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 third-quarter fiscal 2025, Domino's had 214 net store openings.
DPZ’s Other Metrics
Global retail sales (excluding foreign currency impact) rose 6.3% on a year-over-year basis. This upside was driven by a year-over-year increase in international (5.7%) and U.S. store sales (7%).
Comps at Domino’s domestic stores (including company-owned and franchise stores) rose 5.2% year over year. We estimated the metric to increase 6.4% year over year.
At domestic company-owned stores, Domino’s comps increased 3.4% compared with the 3.1% rise reported a year ago. We estimated the metric to increase 5.1% year over year.
Domestic franchise store comps rose 5.3% compared with a 3% increase reported in the prior-year quarter. We estimated the metric to increase 6.5% year over year.
Comps at international stores, excluding foreign currency translation, rose 1.7% compared with a 0.8% improvement reported in the prior-year quarter. We estimated the metric to increase 1% year over year.
DPZ’s Q3 Margins
In the fiscal third quarter, Domino’s gross margin expanded 90 basis points (bps) year over year to 40.1%. However, the U.S. company-owned store gross margin contracted 50 bps year over year to 16.3%. This downside can be attributed to the increase in the company’s food basket pricing to stores and higher wage costs. However, this was partially offset by higher sales leverage.
Balance Sheet of DPZ
As of Sept. 7, 2025, cash and cash equivalents totaled $139.7 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal third quarter totaled $4.81 billion compared with $3.83 billion reported in the previous quarter. Inventory amounted to $71.2 million compared with $70.9 million as of Dec. 31, 2024.
Capital expenditure at the end of the fiscal third quarter totaled $56.7 million, down from $70.8 million reported in the prior-year quarter.
During the reported quarter, the company repurchased 165,778 shares for an aggregated cost of $74.7 million. As of Sept. 7, 2025, DPZ stated the availability of $539.7 million under its repurchase program.
Management declared a cash dividend of $1.74 per share. The dividend will be paid on Dec. 26, 2025, to its shareholders of record as of Dec. 15.
DPZ’s Zacks Rank
Domino's currently carries a Zacks Rank #3 (Hold).
Red Robin has gained 22.2% in the year-to-date period. The Zacks Consensus Estimate for Red Robin's fiscal 2025 sales indicates a decline of 3% year over year, while EPS suggests a rise of 82% from the year-ago period’s levels.
Brinker presently carries a Zacks Rank #2 (Buy). The stock has declined 2.9% in the year-to-date period.
The Zacks Consensus Estimate for Brinker’s fiscal 2026 sales and EPS implies growth of 5.7% and 16.4%, respectively, from the year-ago levels.
Cheesecake Factory presently carries a Zacks Rank #2. The stock has gained 13.3% in the year-to-date period.
The Zacks Consensus Estimate for Cheesecake Factory’s 2025 sales and EPS indicate an increase of 5.1% and 9.6%, respectively, from the year-ago levels.
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Domino's Q3 Earnings & Revenues Beat Estimates, Stock Up
Key Takeaways
Domino's Pizza, Inc. (DPZ - Free Report) reported third-quarter fiscal 2025 results with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure. Following the announcement, the company’s shares gained 4% in the pre-market trading session.
In the fiscal third quarter, Domino’s achieved positive order growth in the United States, supported by the success of its “Best Deal Ever” promotion and innovation around stuffed-crust pizza. These initiatives fueled strong momentum across both delivery and carryout channels. Management emphasized that the company’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 Q3 Earnings & Revenue Discussion
In the quarter under discussion, Domino's reported adjusted earnings per share (EPS) of $4.08, beating the Zacks Consensus Estimate of $3.99. The bottom line declined 2.6% from $4.19 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 $1,147.1 million beat the consensus mark of $1,139 million. Moreover, the top line increased 6.2% 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 third-quarter fiscal 2025, Domino's had 214 net store openings.
DPZ’s Other Metrics
Global retail sales (excluding foreign currency impact) rose 6.3% on a year-over-year basis. This upside was driven by a year-over-year increase in international (5.7%) and U.S. store sales (7%).
Comps at Domino’s domestic stores (including company-owned and franchise stores) rose 5.2% year over year. We estimated the metric to increase 6.4% year over year.
At domestic company-owned stores, Domino’s comps increased 3.4% compared with the 3.1% rise reported a year ago. We estimated the metric to increase 5.1% year over year.
Domestic franchise store comps rose 5.3% compared with a 3% increase reported in the prior-year quarter. We estimated the metric to increase 6.5% year over year.
Comps at international stores, excluding foreign currency translation, rose 1.7% compared with a 0.8% improvement reported in the prior-year quarter. We estimated the metric to increase 1% year over year.
DPZ’s Q3 Margins
In the fiscal third quarter, Domino’s gross margin expanded 90 basis points (bps) year over year to 40.1%. However, the U.S. company-owned store gross margin contracted 50 bps year over year to 16.3%. This downside can be attributed to the increase in the company’s food basket pricing to stores and higher wage costs. However, this was partially offset by higher sales leverage.
Balance Sheet of DPZ
As of Sept. 7, 2025, cash and cash equivalents totaled $139.7 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal third quarter totaled $4.81 billion compared with $3.83 billion reported in the previous quarter. Inventory amounted to $71.2 million compared with $70.9 million as of Dec. 31, 2024.
Capital expenditure at the end of the fiscal third quarter totaled $56.7 million, down from $70.8 million reported in the prior-year quarter.
During the reported quarter, the company repurchased 165,778 shares for an aggregated cost of $74.7 million. As of Sept. 7, 2025, DPZ stated the availability of $539.7 million under its repurchase program.
Management declared a cash dividend of $1.74 per share. The dividend will be paid on Dec. 26, 2025, to its shareholders of record as of Dec. 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 Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) , Brinker International, Inc. (EAT - Free Report) and The Cheesecake Factory Incorporated (CAKE - Free Report) .
Red Robin currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Red Robin has gained 22.2% in the year-to-date period. The Zacks Consensus Estimate for Red Robin's fiscal 2025 sales indicates a decline of 3% year over year, while EPS suggests a rise of 82% from the year-ago period’s levels.
Brinker presently carries a Zacks Rank #2 (Buy). The stock has declined 2.9% in the year-to-date period.
The Zacks Consensus Estimate for Brinker’s fiscal 2026 sales and EPS implies growth of 5.7% and 16.4%, respectively, from the year-ago levels.
Cheesecake Factory presently carries a Zacks Rank #2. The stock has gained 13.3% in the year-to-date period.
The Zacks Consensus Estimate for Cheesecake Factory’s 2025 sales and EPS indicate an increase of 5.1% and 9.6%, respectively, from the year-ago levels.