Delivery & Carryout Both Rising, Is DPZ Entering a New Balance Phase?

Domino's Pizza, Inc.’s DPZ third-quarter 2025 results point to a notable shift in its U.S. sales mix, with both delivery and carryout posting growth at the same time. That combination has been elusive for much of the post-pandemic period, making the latest quarter an important signal that the business may be entering a more balanced growth phase.

Carryout remained the clear standout, with comps up sharply as value-led promotions like Best Deal Ever, menu innovation such as Parmesan Stuffed Crust and a revamped loyalty program drove traffic and frequency. Management emphasized that this growth is largely incremental, reflecting share gains rather than customers trading down from delivery. That distinction matters, as it suggests carryout is expanding the customer base without cannibalizing higher-margin channels.

At the same time, delivery returned to positive territory, supported by the same value initiatives and early traction from aggregator partnerships, including DoorDash. In a tough macro environment marked by aggressive industry discounting, Domino’s ability to grow delivery profitably stands out. Management repeatedly highlighted that its pricing strategy is designed to be sustainable for franchisees, contrasting with what it views as irrational promotions elsewhere in the market.

Financially, this balance showed up in healthier order counts alongside modest ticket growth, creating a more resilient comp algorithm. While carryout has a lower average ticket, the offset from delivery growth, higher-priced innovations and rising frequency helped protect overall economics.

Looking ahead, management sees this balance persisting into 2026, with initiatives across value, loyalty, digital platforms and aggregators compounding over time. If both channels continue to grow in tandem, Domino’s could be entering a more durable phase of demand, one less dependent on any single lever and better positioned to gain share in a pressured consumer environment.

Competitor Check: Delivery vs. Carryout Strategies in Focus

The evolving balance between delivery and carryout at DPZ stands out when compared with two major peers.

Yum! Brands, Inc. YUM, through its Pizza Hut brand, has historically leaned more heavily on delivery, particularly in international markets. While this has supported scale and digital reach, it has also increased exposure to aggregator fees and promotional pressure. In contrast, Pizza Hut’s carryout performance has been less consistent, limiting its ability to offset delivery volatility in a tougher consumer environment.

Papa John’s International, Inc. PZZA has made progress rebuilding carryout via value bundles and loyalty efforts, but delivery growth has been more uneven. A relatively premium pricing stance has constrained order count momentum across channels.

Against this backdrop, Domino’s ability to grow both delivery and carryout simultaneously, while protecting franchise economics, highlights a more balanced and defensible growth model.

DPZ’s Price Performance, Valuation and Estimates

Domino's shares have lost 11.8% in the past six months compared with the industry’s 3.5% decline.

Price Performance 

In terms of its forward 12-month price-to-earnings ratio, DPZ is trading at 20.74, down from the industry’s 24.47.

P/E (F12M)

Over the past seven days, the Zacks Consensus Estimate for DPZ’s 2026 earnings per share has decreased, as shown in the chart.

DPZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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