Domino's Q2 Earnings Disappoint, Revenue Surges 4.3% YoY

Domino's Pizza reported Q2 earnings with $1.15 billion in total revenue, a 4.3% growth YoY, but lower than expected due to a $27.4 million loss from its investment in DPC Dash and higher income taxes. Despite this, shares are up in premarket trading.

Domino's Pizza, Inc. (Nasdaq: DPZ) reported its second-quarter (Q2) 2025 financial results, showing a 4.3% year-over-year (YoY) growth in total revenue to $1.15 billion. The company's U.S. same store sales grew by 3.4%, while international same store sales increased by 2.4% [1].

Despite the revenue growth, Domino's reported a net income decrease of $10.9 million, or 7.7%, compared to the same period last year. The decline was primarily due to a $27.4 million loss from its investment in DPC Dash and higher income taxes. The effective tax rate increased to 22.1% from 15.0% in Q2 2024 [1].

The company's income from operations increased by 14.8%, excluding the $0.2 million negative impact of foreign currency exchange rates on international franchise royalty revenues. General and administrative expenses were lower due to the absence of the Company's Worldwide Rally event, which took place every two years [1].

Domino's also announced a $1.74 per share quarterly dividend and repurchased and retired 315,696 shares of common stock for a total of $150.0 million during the second quarter of 2025. The company had a total remaining authorized amount for share repurchases of $614.3 million as of June 15, 2025 [1].

Shares of Domino's Pizza were up in premarket trading despite the lower-than-expected net income, reflecting investor confidence in the company's long-term growth prospects and strong operational performance.

References:
[1] https://ir.dominos.com/news-releases/news-release-details/dominos-pizzar-announces-second-quarter-2025-financial-results