Domino’s Pizza EPS misses despite revenue beat
Investing.com -- Domino's Pizza Inc. (NASDAQ: DPZ) reported second-quarter results that beat revenue expectations but fell short on earnings, with shares rising 4.7% premarket following the announcement.
The pizza company posted adjusted earnings per share of $4.07, missing the analyst estimate of $4.19 by $0.12. Revenue reached $1.19 billion, exceeding the consensus estimate of $1.18 billion and marking a 4.3% increase from $1.15 billion in the prior year period. U.S. same-store sales grew 0.1%, while international same-store sales declined 0.1%, excluding foreign currency impact. Global retail sales growth, excluding foreign currency impact, was 3.0%.
"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."
The company added 209 net stores globally during the quarter, including 26 in the U.S. and 183 internationally. Income from operations increased 3.1% to $232.0 million from $225.0 million in the prior year quarter. Excluding a $1.1 million positive impact from foreign currency exchange rates, income from operations rose 2.6%.
Net income increased 3.6% to $135.8 million from $131.1 million in the second quarter of 2025. The revenue increase was primarily driven by higher supply chain revenues and higher global franchise royalties and advertising revenues.
Supply chain gross margin expanded 0.2 percentage points to 12.0% due to procurement productivity, partially offset by higher food basket costs. The company's leverage ratio improved to 4.3x from 4.7x in the prior year period.
