Can Domino's Same-Store Sales Strength Support Retail Growth in 2026?

Domino's Pizza, Inc. DPZ relies on strong same-store sales to support overall retail growth across its global system. The company focuses on driving higher order volumes, strengthening store-level economics and expanding its store base. These efforts help increase customer reach and improve sales productivity across existing locations. Consistent comparable sales growth remains central to sustaining retail sales momentum as the company moves into 2026.

Global retail performance in the fourth quarter of 2025 reflected this strength. Global retail sales grew 4.9% in the fourth quarter of 2025, supported by positive comparable sales in both the United States and international markets, along with continued global net store expansion. Growth was supported by steady transaction activity and the company’s ability to attract customers through value-focused offerings and menu innovation.

In the United States, retail sales increased 5.5% in the fourth quarter of 2025, driven by same-store sales growth and new store openings across the system. Same-store sales rose 3.7% in the fourth quarter of 2025 as order volumes improved. Strong customer response to the Best Deal Ever promotion, the introduction of a new specialty pizza and incremental demand from aggregator platforms helped increase transaction counts. Continued strength in both delivery and carryout also supported comparable sales momentum.

International markets also contributed to retail growth. Retail sales rose 4.5% in the fourth quarter of 2025, excluding foreign currency impacts. The increase was driven by net store growth of 296 locations and same-store sales growth of 0.7% in the fourth quarter of 2025. Expanding store development in key markets and steady customer demand supported performance across the international segment.

Looking ahead to 2026, the company expects another year of positive international same-store sales growth, supported by accelerating net store expansion as development activity strengthens across the system. While macroeconomic uncertainty and industry competition remain potential challenges, strong comparable sales trends and continued store growth should help support Domino’s retail sales trajectory in 2026.

How Domino's Stacks Up Against Industry Peers

Domino's operates in a competitive quick-service restaurant pizza market alongside companies such as Yum! Brands YUM and Papa John's International PZZA. These companies compete for customers through menu innovation, value offerings, digital ordering capabilities and restaurant expansion across global markets.

Yum! Brands continues to leverage the scale of its global portfolio, particularly through brands like Taco Bell and KFC. The company reported strong system sales growth supported by unit expansion and positive same-store sales performance. Digital ordering and technology investments remain key drivers, with digital sales increasing significantly and representing a large share of total transactions. Yum! Brands also continues to focus on menu innovation, value offerings and expanding its restaurant footprint to sustain long-term growth across markets.

Papa John’s is currently focused on operational improvements and brand transformation to strengthen its competitive position. The company is investing in menu innovation, including new product launches and an expanded innovation pipeline, aimed at attracting new customers and increasing order frequency. Papa John’s is also enhancing its technology platform and loyalty ecosystem to improve digital engagement while implementing cost optimization initiatives and targeted restaurant portfolio changes to strengthen long-term profitability and growth potential.

DPZ’s Price Performance, Valuation and Estimates

Domino's shares have lost 13% in the past six months against the industry’s 5.5% growth.

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In terms of its forward 12-month price-to-earnings ratio, DPZ is trading at 19.54, down from the industry’s 24.75.

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Over the past 30 days, the Zacks Consensus Estimate for DPZ’s 2026 earnings per share has increased, as shown in the chart.

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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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