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Domino's Q3 Earnings & Revenues Top Estimates on Supply Chain Strength
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Key Takeaways
Domino's Q3 earnings rose 12.7% to $4.60 per share, topping estimates, as revenues climbed to $1.19 billion.
Domino's supply chain revenues rose 7.1% to $746.2 million, aided by higher order volumes and basket prices.
U.S. franchise same-store sales rose just 0.3% versus 5.3% a year ago, while international comps grew 0.2%.
Domino's Pizza, Inc. (DPZ - Free Report) reported third-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Higher supply chain order volumes, procurement-led margin improvements and increased franchise royalties from global store expansion supported quarterly growth. However, sluggish U.S. and international same-store sales, lower franchise advertising revenues and reduced company-owned store revenues following refranchising partially offset the gains.
DPZ's Q3 Earnings & Revenues
Domino's reported third-quarter 2026 earnings of $4.60 per share, beating the Zacks Consensus Estimate of $4.33 by 6.2%. The bottom line increased 12.7% from $4.08 reported in the year-ago quarter. Higher net income and a lower weighted-average share count, resulting from share repurchases, supported earnings growth.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Quarterly revenues totaled $1.19 billion, compared with $1.15 billion a year earlier, and topped the consensus projection of $1.17 billion by 1.6%. Higher supply chain revenues and global franchise royalties more than offset lower U.S. company-owned store revenues following refranchising. Global retail sales increased 3.2% year over year, excluding foreign currency movements.
Domino's Q3 Supply Chain Business Lifts Sales
Supply chain revenues rose 7.1% year over year to $746.2 million from $697 million. Higher order volumes and a 2.2% increase in food basket pricing supported growth. Management estimated that pricing contributed approximately $17 million to quarterly supply chain revenues. Our estimate for the metric was $740.1 million.
U.S. franchise royalties and fees increased to $165.6 million from $157.2 million. Our estimate for the metric was $141.1 million. International franchise royalties and fees climbed to $83.7 million from $78.5 million, driven by net store additions, partially offset by a $0.2 million unfavorable currency impact. Our estimate for the metric was $80.9 million.
U.S. franchise advertising revenues slipped to $128.7 million from $131.6 million as promotional incentives increased. Our estimate for the metric was $118.3 million.
DPZ's Q3 Comparable Sales Show Slower Growth
Global retail sales increased 3.2% year over year, excluding foreign currency fluctuations. U.S. retail sales grew 2.1%, while international retail sales advanced 4.3% on a constant-currency basis.
U.S. company-owned same-store sales increased 1%, versus 3.4% a year earlier. Franchise comps grew 0.3%, compared with 5.3% in the year-ago period. International same-store sales edged up 0.2%, excluding currency effects, versus growth of 1.7% a year ago.
Domino's Q3 Supply Chain Margins Improve
Gross profit increased to $476.4 million from $459.9 million, while consolidated gross margin expanded 10 basis points to 40.2%. Supply chain gross margin widened 90 basis points to 12.2%, aided by procurement productivity and labor efficiencies. Higher fuel-related delivery expenses partly offset those gains. Our estimate for the metric was 38.7%.
U.S. company-owned store gross margin contracted 430 basis points to 12%, pressured by higher food prices, wage rates and insurance costs. General and administrative expenses edged up to $105.7 million from $105.1 million.
DPZ's Q3 Operating Income and Net Profit Rise
Income from operations increased 8.3% to $241.8 million from $223.2 million. Excluding a $0.2 million unfavorable currency effect on international franchise royalties, operating income grew 8.4%. Higher royalty revenues and supply chain gross profit drove the improvement.
Net income advanced 9.2% to $152.2 million from $139.3 million. Net interest expense increased to $44.2 million from $41 million. The company recorded a $2.5 million unrealized loss on its DPC Dash investment, compared with a $3 million loss in the prior-year period.
Domino's Q3 Global Store Network Expands
Domino's added 175 net stores globally during the quarter, comprising 26 in the United States and 149 internationally. The worldwide store count reached 22,706, including 7,257 U.S. stores and 15,449 international locations.
Net store growth over the trailing four quarters totaled 956, including 167 domestic and 789 international additions. CEO Joe Jordan emphasized faster execution, improving franchisee profitability and stronger customer engagement as priorities.
DPZ's Nine-Month Cash Flow Moderates
Net cash provided by operating activities declined to $520.6 million for the first three quarters of 2026 from $552.3 million a year earlier. Capital expenditures rose to $60.8 million from $56.7 million.
Free cash flow decreased 7.2% to $459.8 million from $495.6 million, reflecting the timing of advertising payments and changes in operating assets and liabilities. Cash and cash equivalents stood at $229 million as of Sept. 6, 2026, compared with $125.7 million at 2025-end.
Domino's Leverage Falls as Capital Returns Continue
The leverage ratio improved to 4.2 times from 4.5 times a year earlier. Total debt stood at about $4.89 billion, including $1.33 billion classified as current liabilities ahead of anticipated 2027 note repayments. Management expects to refinance those notes at higher interest rates.
The company repurchased 216,282 shares for $73.6 million during the quarter, with $1.15 billion remaining under its authorization. The board also declared a $1.99-per-share quarterly dividend, payable Dec. 30, 2026, to its shareholders of record as of Dec. 15.
DPZ’s Zacks Rank & Key Picks
Domino's currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Retail-Wholesale sector are:
Five Below, Inc. (FIVE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 14.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 20.1% and 57.6%, respectively, from the year-ago period’s levels.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 228.6%, on average. CBRL stock has surged 133.6% year to date.
The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 1.5% and 95%, respectively, from the prior-year levels.
FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has declined 39.8% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.8% and 89.5%, respectively, from the prior-year levels.
View the Zacks #1 Rank List
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Domino's Q3 Earnings & Revenues Top Estimates on Supply Chain Strength
Key Takeaways
Domino's Pizza, Inc. (DPZ - Free Report) reported third-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Higher supply chain order volumes, procurement-led margin improvements and increased franchise royalties from global store expansion supported quarterly growth. However, sluggish U.S. and international same-store sales, lower franchise advertising revenues and reduced company-owned store revenues following refranchising partially offset the gains.
DPZ's Q3 Earnings & Revenues
Domino's reported third-quarter 2026 earnings of $4.60 per share, beating the Zacks Consensus Estimate of $4.33 by 6.2%. The bottom line increased 12.7% from $4.08 reported in the year-ago quarter. Higher net income and a lower weighted-average share count, resulting from share repurchases, supported earnings growth.
Domino's Pizza Inc Price, Consensus and EPS Surprise
Domino's Pizza Inc price-consensus-eps-surprise-chart | Domino's Pizza Inc Quote
Quarterly revenues totaled $1.19 billion, compared with $1.15 billion a year earlier, and topped the consensus projection of $1.17 billion by 1.6%. Higher supply chain revenues and global franchise royalties more than offset lower U.S. company-owned store revenues following refranchising. Global retail sales increased 3.2% year over year, excluding foreign currency movements.
Domino's Q3 Supply Chain Business Lifts Sales
Supply chain revenues rose 7.1% year over year to $746.2 million from $697 million. Higher order volumes and a 2.2% increase in food basket pricing supported growth. Management estimated that pricing contributed approximately $17 million to quarterly supply chain revenues. Our estimate for the metric was $740.1 million.
U.S. franchise royalties and fees increased to $165.6 million from $157.2 million. Our estimate for the metric was $141.1 million. International franchise royalties and fees climbed to $83.7 million from $78.5 million, driven by net store additions, partially offset by a $0.2 million unfavorable currency impact. Our estimate for the metric was $80.9 million.
U.S. franchise advertising revenues slipped to $128.7 million from $131.6 million as promotional incentives increased. Our estimate for the metric was $118.3 million.
DPZ's Q3 Comparable Sales Show Slower Growth
Global retail sales increased 3.2% year over year, excluding foreign currency fluctuations. U.S. retail sales grew 2.1%, while international retail sales advanced 4.3% on a constant-currency basis.
U.S. company-owned same-store sales increased 1%, versus 3.4% a year earlier. Franchise comps grew 0.3%, compared with 5.3% in the year-ago period. International same-store sales edged up 0.2%, excluding currency effects, versus growth of 1.7% a year ago.
Domino's Q3 Supply Chain Margins Improve
Gross profit increased to $476.4 million from $459.9 million, while consolidated gross margin expanded 10 basis points to 40.2%. Supply chain gross margin widened 90 basis points to 12.2%, aided by procurement productivity and labor efficiencies. Higher fuel-related delivery expenses partly offset those gains. Our estimate for the metric was 38.7%.
U.S. company-owned store gross margin contracted 430 basis points to 12%, pressured by higher food prices, wage rates and insurance costs. General and administrative expenses edged up to $105.7 million from $105.1 million.
DPZ's Q3 Operating Income and Net Profit Rise
Income from operations increased 8.3% to $241.8 million from $223.2 million. Excluding a $0.2 million unfavorable currency effect on international franchise royalties, operating income grew 8.4%. Higher royalty revenues and supply chain gross profit drove the improvement.
Net income advanced 9.2% to $152.2 million from $139.3 million. Net interest expense increased to $44.2 million from $41 million. The company recorded a $2.5 million unrealized loss on its DPC Dash investment, compared with a $3 million loss in the prior-year period.
Domino's Q3 Global Store Network Expands
Domino's added 175 net stores globally during the quarter, comprising 26 in the United States and 149 internationally. The worldwide store count reached 22,706, including 7,257 U.S. stores and 15,449 international locations.
Net store growth over the trailing four quarters totaled 956, including 167 domestic and 789 international additions. CEO Joe Jordan emphasized faster execution, improving franchisee profitability and stronger customer engagement as priorities.
DPZ's Nine-Month Cash Flow Moderates
Net cash provided by operating activities declined to $520.6 million for the first three quarters of 2026 from $552.3 million a year earlier. Capital expenditures rose to $60.8 million from $56.7 million.
Free cash flow decreased 7.2% to $459.8 million from $495.6 million, reflecting the timing of advertising payments and changes in operating assets and liabilities. Cash and cash equivalents stood at $229 million as of Sept. 6, 2026, compared with $125.7 million at 2025-end.
Domino's Leverage Falls as Capital Returns Continue
The leverage ratio improved to 4.2 times from 4.5 times a year earlier. Total debt stood at about $4.89 billion, including $1.33 billion classified as current liabilities ahead of anticipated 2027 note repayments. Management expects to refinance those notes at higher interest rates.
The company repurchased 216,282 shares for $73.6 million during the quarter, with $1.15 billion remaining under its authorization. The board also declared a $1.99-per-share quarterly dividend, payable Dec. 30, 2026, to its shareholders of record as of Dec. 15.
DPZ’s Zacks Rank & Key Picks
Domino's currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Retail-Wholesale sector are:
Five Below, Inc. (FIVE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 14.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 20.1% and 57.6%, respectively, from the year-ago period’s levels.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 228.6%, on average. CBRL stock has surged 133.6% year to date.
The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 1.5% and 95%, respectively, from the prior-year levels.
FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has declined 39.8% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.8% and 89.5%, respectively, from the prior-year levels.