Domino's Q2 2025: Unpacking Key Contradictions in Sales Impact, Supply Chain Gains, and Growth Expectations

Impact of aggregator platforms on sales, supply chain productivity gains, DoorDash rollout impact, U.S. unit development expectations, and U.S. same-store sales growth expectations are the key contradictions discussed in Domino's latest 2025Q2 earnings call.



Strong Financial Performance:
- Domino's Pizza reported a 14.9% increase in income from operations in Q2, excluding the impact of foreign currency.
- This growth was driven by higher U.S. franchise royalties, gross margin dollar growth in supply chain, and lower G&A expenses.

Domestic Sales and Market Share Growth:
- U.S. retail sales grew by 5.1%, driven by a 3.4% same-store sales increase, with delivery and carryout both positive.
- Growth was supported by the successful launch of the Parmesan Stuffed Crust pizza, which contributed incremental new customers and higher mix, and by promotions like Domino's Rewards and the Best Deal Ever.

International Expansion:
- International retail sales grew by 6%, excluding the impact of foreign currency, driven by net store growth of 148 and same-store sales growth of 2.4%.
- Growth was supported by strong performance in regions like Asia, particularly in India, and in the Americas, driven by strategic pillars like new product launches and operational excellence.

Aggregator Platform Integration:
- Domino's completed the national rollout with DoorDash, which is expected to be a meaningful driver for U.S. comp in the second half of the year.
- This integration is expected to increase sales as marketing and investments on both sides increase, leveraging DoorDash's larger market share compared to Uber Eats.

Franchisee Structure Optimization:
- Domino's refranchised 36 company-owned stores in Maryland to a new franchisee, reflecting the company's ongoing strategy to strengthen the brand's position for long-term success.
- This move is part of a broader effort to expand into new markets and transition existing ones to franchisees to grow business and enhance franchisee economics.