DOMINOS PIZZA INC (DPZ) Q1 2026 Earnings Call Transcript
Bullish Restaurants 13.15B USA
Next Earnings
2026-04-27
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Domino's delivered solid 2025 results with 8% operating income growth ex FX and strong US market share gains, while guiding 2026 to mid-single-digit top-line growth and ~8% operating income growth on continued strategic initiatives and share gains.
⭐ Key Highlights
Dominio's long-term share growth strategy
CEO Russell Weiner reiterates the goal to potentially double US retail sales and continue multi-year market-share gains through the Hungry For More strategy, leveraging scale, pricing power, and franchisee profitability.
Strong 2025 operating performance and franchisee economics
2025 income from operations rose 8.1% excluding FX and refranchising gains; US franchisee store profitability rose to about $166,000 per store; delivery and carryout mix remained favorable for franchisee economics.
Product and value initiatives delivered material results
Parmesan Stuffed Crust and Best Deal Ever promotions contributed to higher order counts, mix shift, and franchisee profitability, supported by Domino's scale advantages.
2026 guidance supports continued growth with modest pricing
Guidance calls for ~6% global retail sales growth, 3% US comps, 1–2% international SSS, and ~8% operating income growth excluding FX/refranchising, with CapEx ~$120M and a higher technology fee.
International turnaround efforts and DPE headwinds
International growth remains a driver, with 800 net stores expected; DPE headwinds and restructuring are acknowledged as a key risk to international contributions in 2026.
✔Positive Signals
- 8.1% income from operations growth in 2025 ex FX and refranchising gains
- US same-store sales +3% for the year and 172 net US stores opened
- Parmesan Stuffed Crust and Best Deal Ever boosting customer throughput and profitability
- Franchisee store-level EBITDA growth and strong franchisee economics
- Dividend increase by 15% and substantial share repurchases (~$80M in Q4)
✖Negative Signals
- DPE international headwinds impacting growth in 2026
- Insurance-related margin compression at corporate stores
- Macro environment expected to remain pressured in 2026
- Weather disruption in January affecting early-quarter SSS
- 53rd-week impact of ~2% on global retail sales and operating profit
📊Financial Results
- Income from operations +8.1% in 2025 ex FX and $4.0M refranchising gains; FX headwind was $0.6M
- Global retail sales growth 4.9% in Q4 and 5.4% for the year (ex FX), driven by positive comps and net store growth
- US same-store sales up 3.0% for the full year; US carryout comp +6.5%, delivery +1.6%
- US franchisee store profitability ~ $166,000 per store in 2025, up $4,000 YoY
- Share repurchase: ~189k shares for $80M in Q4; 2025 remaining repurchase authorization around $460M
🔮Future Guidance
- Global retail sales growth guidance for 2026: ~6% (excluding 53rd week impact)
- US comps guidance for 2026: ~3%, with higher growth in the first half
- International SSS guidance for 2026: 1%–2% due to DPE headwinds and new store openings in China
- US net store adds: 175+; International net store growth: ~800
- Operating income growth target for 2026: ~8% excluding FX and refranchising gains; CapEx ~ $120M; tax rate 21%–23%; tech fee up to $0.385 per digital transaction
💡Interesting Insights
- The company emphasizes 'profit power' over pricing power, aiming to maintain value for customers while delivering franchisee profitability
- DOM OS orchestration and real-time order-to-dispatch enhancements show a technology-led push to improve operations and delivery efficiency
- Management views competitive store closures as opportunities to accelerate net store growth and overall profitability
Detailed Analysis
AI-generated summary of DOMINOS PIZZA INC earnings call transcript.
Domino's 2025 results showcased durable growth across carryout and delivery, driven by value promotions, new product offerings (Parmesan Stuffed Crust) and logistics efficiencies. The company achieved 8.1% year-over-year operating income growth ex FX and expanded US franchisee profitability, supported by robust net store growth and consistent same-store sales gains. Management stressed a multiyear path to higher market share, particularly in the US where they target roughly 3% comps and 175+ US net stores in 2026, alongside international expansion (about 800 net stores). They highlighted ongoing investments in technology and an enhanced ecommerce platform, along with a focus on profitability and incrementality in delivery via aggregators. The 2026 guidance factors in macro-headwinds, a 2% impact from the 53rd week, and expected FX benefits, with capex around $120M and a higher technology fee to fund initiatives. Risks include DPE performance in international markets and insurance-cost pressures on margins, though franchisee economics remain solid.
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