A month has gone by since the last earnings report for Domino's Pizza (DPZ Quick QuoteDPZ - Free Report) . Shares have added about 11.1% 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? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Domino's Pizza Inc before we dive into how investors and analysts have reacted as of late.

Domino's Q3 Earnings & Revenues Top Estimates on Supply Chain Strength

Domino's 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.

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. 

U.S. franchise royalties and fees increased to $165.6 million from $157.2 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.

U.S. franchise advertising revenues slipped to $128.7 million from $131.6 million as promotional incentives increased.

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.

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.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Domino's Pizza has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has 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.