A month has gone by since the last earnings report for Domino's Pizza (DPZ Quick QuoteDPZ - Free Report) . Shares have added about 3% in that time frame, outperforming the S&P 500.

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

Domino's Q2 Earnings Miss Estimates, Revenues Increase YoY

Domino's reported second-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines increased on a year-over-year basis.

The company reported meaningful second-quarter order growth across both delivery and carryout channels despite persistent consumer demand pressures in the broader U.S. quick-service restaurant industry. Sustained order expansion remains a central component of Domino’s long-term growth framework, supported by new customer acquisition, greater loyalty program participation, increased supply chain throughput and continued store development. The company also cited its scale and competitive positioning as structural advantages that could support additional market-share gains and long-term shareholder value creation.

DPZ's Q2 Earnings & Revenues

Domino's reported second-quarter 2026 earnings of $4.07 per share, missing the Zacks Consensus Estimate of $4.11 by 1%. However, the bottom line increased 6.8% from $3.81 reported in the year-ago quarter.

Quarterly revenues of $1.19 billion surpassed the consensus estimate of $1.17 billion by 2.1% and rose 4.3% year over year. Higher supply chain revenues, franchise royalties and advertising revenues supported growth, while U.S. same-store sales increased 0.1% year over year.

DPZ's Q2 Supply Chain Business Drives Revenue Growth

Supply chain revenues increased to $731.7 million from $687.1 million reported in the prior-year quarter. The improvement reflected higher-order volumes and a 2.2% increase in food basket pricing. Our estimate for the metric was $749.9 million.

In the second quarter, U.S. franchise royalties and fees rose to $164.2 million compared with $156.3 million reported in the prior-year quarter. Our estimate for the metric was $140.7 million.

International franchise royalties and fees advanced to $81.8 million from $77.2 million, supported by net store growth and a $1.1 million favorable foreign currency impact. Our estimate for the metric was $82.8 million.

U.S. franchise advertising revenues increased to $134.9 million from $132.2 million. Our estimate for the metric was $119.1 million.

Domino's Q2 Comparable Sales Show Uneven Demand

Global retail sales increased 3% year over year, excluding foreign currency movements. U.S. retail sales rose 1.9%, while international retail sales increased 4.1% on a constant-currency basis.

Comparable sales trends were more subdued. U.S. same-store sales edged up 0.1% compared with 3.4% growth a year earlier. Company-owned store comps increased 2.1% year over year, while franchise store comps were flat. International same-store sales declined 0.1% against a 2.4% increase reported in the prior-year quarter.

Domino's Q2 Margin Performance Remains Mixed

In the second quarter, Gross margin dollars came in at $478.2 million compared with $461 million reported in the prior-year quarter. However, gross margin as a percentage of revenues contracted 30 basis points year over year to 40%. Our estimate for the metric was 39%.

Supply chain gross margin expanded 20 basis points year over year to 12%, aided by procurement productivity. The benefit was partly offset by higher food basket costs. General and administrative expenses came in at $115.4 million compared with $107.6 million reported in the prior-year quarter.

DPZ Posts Higher Operating Income and Net Profit

In the second quarter, income from operations increased 3.1% year over year to $232 million. Excluding the favorable currency impact on international franchise royalties, operating income rose 2.6%, driven by franchise royalty growth and higher supply chain gross profit. Our estimate for the metric was $242.1 million.

Net income advanced 3.6% year over year to $135.8 million. Results also benefited from a favorable $3.6 million change in pre-tax unrealized and realized losses tied to the company’s investment in DPC Dash.

DPZ Extends Its Global Store Expansion

Domino’s posted global net store growth of 209 during the quarter. The company added 26 net stores in the United States and 183 internationally, bringing its worldwide store count to 22,531.

The U.S. system ended the period with 7,231 locations, while the international network reached 15,300 stores. Over the trailing four quarters, net store growth totaled 995, including 170 domestic and 825 international additions.

Domino's Cash Flow Moderates in the First Half

Net cash provided by operating activities totaled $352.6 million during the first two quarters of 2026, down from $366.9 million in the comparable 2025 period. Capital expenditures increased to $39 million from $35.2 million reported in the prior-year period.

Free cash flow declined 5.5% year over year to $313.6 million. The decrease reflected changes in operating assets and liabilities, along with the timing and amount of advertising-related payments. Cash and cash equivalents stood at $164.8 million as of June 14, 2026.

DPZ Returns Capital While Lowering Leverage

Domino’s repurchased 443,917 shares for $156.2 million during the quarter. The company had $1.23 billion remaining under its share repurchase authorization at quarter-end.

The leverage ratio improved to 4.3 times from 4.7 times a year earlier. Following the quarter, the board declared a quarterly dividend of $1.99 per share, payable Sept. 30, 2026, to its shareholders of record as of Sept. 15.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

Currently, Domino's Pizza has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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.