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(Sharecast News) - Domino's Pizza reported higher fourth-quarter revenue and operating profit on Monday, as US same-store sales growth and store expansion lifted results, while earnings per share came in just below Wall Street expectations.
For the quarter ended 28 December, revenue rose 6.4% to $1.54bn from $1.44bn a year earlier, ahead of analyst estimates of $1.52bn.
Net income increased to $181.6m, or $5.35 a share, from $169.4m, or $4.89 a share.
Adjusted earnings per share of $5.35 were up 9.4% year on year but missed consensus forecasts of about $5.38 to $5.39.
Global retail sales grew 4.9% in the quarter excluding foreign currency effects, reflecting a 5.5% increase in the US and a 4.5% rise internationally.
US same-store sales climbed 3.7%, with gains across both company-owned and franchise locations, while international same-store sales rose 0.7% excluding currency impacts, marking the company's 32nd consecutive year of international comparable-sales growth.
Domino's added a net 392 stores globally in the quarter, bringing total locations to 22,142.
Income from operations increased 8.0% to $295.7m.
Excluding a $1.9m favourable foreign exchange impact on international franchise royalty revenues, operating income rose 7.3%.
Growth was driven by higher supply chain revenues, US franchise advertising revenues and royalty fees, supported by higher order volumes and a 1.7% increase in food basket pricing to stores.
US company-owned store gross margin fell to 10.1% from 15.5%, reflecting higher insurance costs, labour rates and food costs, while supply chain gross margin edged up to 11.4%.
For the 2025 financial year, revenue rose 5.0% to $4.94bn and operating income increased 8.5% to $954m.
Net income was $601.7m, up 3.0%, with diluted earnings per share of $17.57, a 5.3% increase.
Global retail sales grew 5.4% for the year excluding currency effects, including US same-store sales growth of 3% and international growth of 1.9%.
Net global store growth totaled 776 locations in 2025.
Free cash flow rose 31.2% to $671.5m, as operating cash flow increased to $792.1m, partly offset by $120.6m in capital expenditures.
The company repurchased 785,280 shares for $354.7m during the year and ended the period with a leverage ratio of 4.4 times, down from 4.9 times a year earlier.
Chief executive Russell Weiner said the company gained another point of US market share in 2025, outpacing the broader quick-service pizza category, and expected further share gains in 2026.
Domino's had leaned on value promotions such as its $9.99 'Best Deal Ever', menu innovation including its parmesan stuffed crust pizza, and expanded digital and third-party delivery partnerships to drive traffic amid cautious consumer spending.
The board approved a 15% increase in the quarterly dividend to $1.99 per share, payable 30 March to shareholders of record on 13 March.
At 0817 ET (1317 GMT), shares in Domino's Pizza were up 5.17% in premarket trading in New York at $404.50.
Reporting by Josh White for Sharecast.com.