Domino's Pizza Inc. (NASDAQ:DPZ) released fourth-quarter results that combined a revenue beat and broad operational momentum with a narrowly missed earnings-per-share target, propelling the stock higher after the announcement.
For the quarter, adjusted earnings per share came in at $5.35, a hair under the analyst consensus of $5.39 by $0.04. Revenue reached $1.54 billion, topping the $1.52 billion estimate and representing a 6.4% increase from $1.44 billion in the same period a year earlier.
On the sales front, U.S. same-store sales climbed 3.7% during the quarter. International same-store sales posted a 0.7% increase when excluding the effects of foreign currency. During the period, the company opened a net total of 392 stores worldwide.
CEO Russell Weiner commented on the year, saying, "In 2025 we demonstrated that when we execute our Hungry for MORE strategy it delivers MORE sales, MORE stores, and MORE profits." He also highlighted the company's international track record, noting a 32nd consecutive year of same-store sales growth in that segment.
Income from operations for the quarter rose 8.0% to $295.7 million, up from $273.7 million in the fourth quarter of 2024. For the full fiscal year 2025, Domino's reported U.S. same-store sales growth of 3.0% and international same-store sales growth of 1.9%, alongside global net store growth of 776 locations.
The company's Board of Directors approved a 15% increase in the quarterly dividend to $1.99 per share. That dividend is payable on March 30, 2026 to shareholders of record as of March 13, 2026.
Several margin and cash-flow metrics were disclosed. Supply chain gross margin edged up slightly to 11.4% from 11.3% year-over-year. By contrast, gross margin at U.S. company-owned stores fell to 10.1% from 15.5%, a decline the company attributed primarily to higher insurance costs and increased labor rates. Free cash flow for fiscal 2025 improved to $671.5 million, a 31.2% increase from $512.0 million in the prior year.
The results present a mix of operational gains and cost pressures: revenue and store growth point to expanding top-line activity, while the company-owned store margin decline underscores rising expense items that affected profitability on that operating line.
What to watch next
- How Domino's manages company-owned store margins in the face of higher insurance and labor costs.
- The pace of global net store openings and their contribution to sales and cash flow going forward.
- Whether international same-store sales remain resilient once foreign-currency effects are included.