Domino’s Pizza Inc. (NASDAQ:DPZ) stock rose nearly 7% in Monday’s premarket trading after the company reported second-quarter revenue that topped Wall Street estimates, although earnings per share missed expectations.
Earnings Snapshot
Revenue increased 4.3% year over year to $1.194 billion, exceeding analysts’ estimates of $1.18 billion. Growth was driven by higher supply chain sales, global franchise royalties and advertising revenue.
Operating income rose 3.1% to $232 million, supported by higher U.S. and international franchise royalties and fees, along with improved supply chain margins.
Adjusted earnings came in at $4.07 per share, below the consensus estimate of $4.20.
According to Reuters, growth in Domino’s supply chain business helped offset softer restaurant demand as consumers remained cautious about discretionary spending.
Chief Executive Officer Russell Weiner said that despite continued pressure across the U.S. quick-service restaurant industry, Domino’s delivered order growth in both its delivery and carryout businesses while attracting millions of new customers. “My conviction in Domino’s long-term growth potential remains as strong as ever,” he added.
Read Also: Domino's Announces CEO Retirement While Same-Store Sales Continue Tracking Below Target
Operating Performance
Global retail sales, excluding foreign currency impacts, increased 3.0% on a currency-neutral basis. U.S. retail sales rose 1.9%, while international retail sales increased 4.1%.
U.S. and international same-store sales were both essentially flat from a year earlier.
Gross margin declined to 40.0% from 40.3% a year ago. However, supply chain gross margin improved by 20 basis points to 12.0%, primarily due to procurement productivity.
Domino’s opened a net 209 stores during the quarter, including 26 in the United States and 183 internationally.
Cash Flow And Capital Returns
The company ended the quarter with $164.8 million in cash and cash equivalents.
Domino’s declared a quarterly dividend of $1.99 per share, payable on Sept. 30, 2026, to shareholders of record on Sept. 15, 2026.
During the quarter, the company repurchased 443,917 shares for $156.2 million. Year to date, it has repurchased 632,221 shares for $231.3 million. The company had $1.23 billion remaining under its share repurchase authorization.
DPZ Price Action: Domino’s Pizza shares were up 7.08% at $345.00 during premarket trading on Monday, according to Benzinga Pro data.
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