A month has gone by since the last earnings report for Domino's Pizza (DPZ Quick QuoteDPZ - Free Report) . Shares have lost about 13.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Domino's Pizza due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Domino's Q4 Earnings Miss Estimates, Revenues Beat

Domino's 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.

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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Domino's Pizza has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Domino's Pizza has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Domino's Pizza belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Restaurant Brands (QSR Quick QuoteQSR - Free Report) , has gained 7.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Restaurant Brands reported revenues of $2.47 billion in the last reported quarter, representing a year-over-year change of +7.4%. EPS of $0.96 for the same period compares with $0.81 a year ago.

Restaurant Brands is expected to post earnings of $0.83 per share for the current quarter, representing a year-over-year change of +10.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Restaurant Brands. Also, the stock has a VGM Score of C.