DominoS Pizza 2025 Q3 Earnings Misses Targets with Net Income Down 5.2%

Domino's Pizza reported its fiscal 2025 Q3 earnings on October 14, 2025. The results showed mixed performance, with total revenue up 6.2% but net income and EPS declining. The company reaffirmed its 2025 guidance and outlined strategic initiatives to sustain growth.

Domino’s Pizza reported third-quarter 2025 results that beat revenue estimates but fell short on earnings. The company generated $1.15 billion in revenue, a 6.2% year-over-year increase and above the $1.137 billion expected by analysts. However, diluted EPS came in at $4.08, a 2.6% drop from $4.19 a year ago, as net income declined 5.2% to $139.32 million. The company has maintained profitability for over 20 years in the quarter, reflecting ongoing operational resilience despite these near-term challenges.

Revenue for the quarter was driven by a diversified business model. U.S. company-owned stores reported $82.75 million in sales, supported by strong consumer demand and promotional activity. U.S. franchise royalties and fees grew to $157.16 million, reflecting the continued strength of the franchise system. The supply chain segment remained a major contributor, generating $696.96 million in revenue, bolstered by efficient procurement and distribution. International franchise royalties and fees totaled $78.55 million, while U.S. franchise advertising added $131.64 million, demonstrating the brand’s continued appeal among franchisees and consumers.

Despite the revenue growth, EPS performance was weaker. The company’s net income dropped to $139.32 million, representing a 5.2% decline from the prior year. Although Domino’s continued to deliver results, the EPS figure was a negative, signaling short-term challenges in profitability. The decline in net income was influenced by factors including pre-tax unrealized losses and gains from its investment in DPC Dash Ltd.

Following the earnings release, the stock experienced mixed price action. On the most recent trading day, shares rose 4.17%. Over the past full trading week, the stock advanced 3.11%, but the monthly performance was negative, with a 6.15% drop month-to-date. The market appears to be factoring in both the company’s growth and its near-term profitability pressures.

Post-earnings, the company provided an outlook aligned with its long-term goals. CEO Russell Weiner emphasized the success of initiatives like the Best Deal Ever promotion and Parmesan Stuffed Crust, which contributed to strong sales growth. He noted the importance of the brand refresh and digital platform upgrades in supporting future performance and maintaining a 3% same-store sales growth outlook for the U.S. in 2026. Weiner also highlighted the company’s ability to gain market share amid macroeconomic challenges, citing its value proposition and franchisee profitability as key strengths. Innovation, including new products like Bread Bites, and a focus on sustainable promotions were also cited as strategic priorities.

Domino’s reaffirmed its 2025 guidance, with expectations for 3% U.S. same-store sales growth, 1% to 2% international same-store sales growth, and global retail sales growth in line with 2024. The company also anticipates adding over 175 net new stores in the U.S. and internationally, with operating income growth of approximately 8%, excluding currency and restructuring impacts.

On October 14, 2025, Domino's Pizza Inc (DPZ, Financial) released its 8-K filing detailing its financial performance for the third quarter of 2025. As the largest pizza company globally, Domino’s operates over 21,500 stores across more than 90 international markets. The company generates revenue through sales at company-owned stores, royalties, marketing contributions from franchise-operated stores, and its extensive supply chain network. Despite the EPS and net income declines, the company reported a 6.2% increase in total revenues to $1,147.1 million, exceeding analyst expectations. Global retail sales growth reached 6.3%, with U.S. same-store sales up 5.2% and international same-store sales increasing 1.7% (excluding currency impacts). The company also opened 214 new stores, including 29 in the U.S. and 185 internationally. Income from operations rose by 12.2% to $223.2 million, driven by higher U.S. franchise royalties and supply chain improvements. However, the U.S. company-owned store gross margin declined due to higher food and labor costs. The CEO highlighted the company’s resilience and adaptability in a challenging market and emphasized the importance of its growth strategy.