Domino’s Pizza Inc. (NASDAQ:DPZ) reported second-quarter results that exceeded revenue expectations but delivered earnings below Wall Street forecasts, while the company’s shares climbed 4.7% in premarket trading following the release.
Adjusted earnings per share came in at $4.07, missing analysts’ expectations of $4.19 by $0.12. Revenue rose to $1.19 billion, ahead of the consensus estimate of $1.18 billion and up 4.3% from $1.15 billion in the same quarter last year.
Order growth offsets softer consumer demand
Domino’s reported U.S. same-store sales growth of 0.1%, while international same-store sales, excluding foreign exchange effects, declined 0.1%. Global retail sales increased 3.0% on the same basis.
“In the second quarter, Domino’s drove meaningful order count growth,” said Russell Weiner, Chief Executive Officer. “I believe order growth is the most important driver of long-term success in our business. In a quarter where the broader U.S. QSR industry continued to face pressure on consumer demand, Domino’s generated order count growth across both our delivery and carryout businesses, bringing millions of new customers to our brand.”
Store expansion and operating profit improve
During the quarter, Domino’s expanded its global footprint by a net 209 stores, including 26 new locations in the United States and 183 internationally.
Operating income increased 3.1% to $232.0 million, compared with $225.0 million a year earlier. Excluding a $1.1 million favourable foreign exchange impact, operating income rose 2.6%.
Revenue growth driven by supply chain and franchise business
Net income climbed 3.6% year over year to $135.8 million from $131.1 million in the second quarter of 2025.
The company said higher supply chain revenue, together with increased franchise royalty and advertising revenue from its global network, were the main contributors to overall sales growth.
Domino’s also reported an improvement in supply chain profitability, with gross margin increasing by 0.2 percentage points to 12.0%, supported by procurement efficiencies despite higher food costs.
The company’s leverage ratio improved to 4.3 times from 4.7 times in the corresponding period last year.
Domino’s Pizza stock price
