Domino’s Pizza (NASDAQ:DPZ) Announces Earnings Results, Beats Expectations By $0.27 EPS

Domino’s Pizza (NASDAQ:DPZ) issued its quarterly earnings data on Tuesday. The restaurant operator reported $4.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.33 by $0.27, FiscalAI reports. Domino’s Pizza had a net margin of 12.03% and a negative return on equity of 15.48%. The company had revenue of $1.19 billion for the quarter. During the same period in the previous year, the business posted $4.08 earnings per share. The company’s revenue for the quarter was up 3.4% on a year-over-year basis.

Here are the key takeaways from Domino’s Pizza’s conference call:

• Positive Sentiment: Q3 operating income rose 8.5% excluding foreign currency and refranchising effects, driven by higher U.S. and international franchise royalties and fees, as well as supply-chain productivity.
• Neutral Sentiment: U.S. same-store sales increased just 0.3%, as order-count growth and aggregator demand were offset by lower average tickets and fewer items per order amid consumer pressure. Carryout sales rose 1.0%, while delivery declined 0.3%.
• Negative Sentiment: Domino’s lowered its 2026 outlook, now expecting U.S. same-store sales toward the low end of low-single-digit growth, international same-store sales to be approximately flat, and operating-income growth in the mid-single digits.
• Negative Sentiment: The company reduced its 2026 U.S. net new-store target to 125–150 from prior expectations, citing pressure on franchisee profitability and the development pipeline, although management said closures remain minimal and the long-term potential remains above 8,500 U.S. stores.
• Positive Sentiment: Management highlighted continued share gains, strong order growth, expansion on third-party delivery platforms, the new Domino product, and approximately $305 million of year-to-date share repurchases. Leadership also expects further opportunities from loyalty, targeted promotions, operational consistency, and international store growth.

Domino’s Pizza Stock Down 0.1%

NASDAQ DPZ opened at $295.89 on Thursday. The stock has a market capitalization of $9.79 billion, a P/E ratio of 16.30, a P/E/G ratio of 1.35 and a beta of 0.94. Domino’s Pizza has a 52-week low of $282.00 and a 52-week high of $442.35. The firm has a 50-day moving average price of $322.65 and a 200 day moving average price of $327.05.

Domino’s Pizza Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 30th. Investors of record on Tuesday, December 15th will be issued a dividend of $1.99 per share. This represents a $7.96 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, December 15th. Domino’s Pizza’s dividend payout ratio is currently 45.15%.

Domino’s Pizza News Roundup

Here are the key news stories impacting Domino’s Pizza this week:

• Positive Sentiment: Domino’s reported third-quarter earnings of $4.60 per share and revenue of $1.19 billion, exceeding consensus estimates of $4.33–$4.38 and approximately $1.17 billion. Earnings increased from $4.08 a year earlier. Domino’s Q3 revenue report
• Positive Sentiment: Supply-chain revenue, franchise royalties and continued share repurchases supported profitability, while management said more frequent customer visits are partly offsetting smaller orders. Domino’s Q3 earnings and supply-chain report
• Positive Sentiment: The company declared a quarterly dividend of $1.99 per share, equivalent to $7.96 annually and a stated yield of about 2.7%, providing income support for shareholders.
• Neutral Sentiment: Analyst opinion remains mixed. BTIG reaffirmed a Buy rating with a $425 target, while Bank of America retained Buy despite lowering its target to $410. Morgan Stanley, RBC, Baird and Citigroup maintained neutral or market-perform views, with targets ranging from $308 to $345.
• Negative Sentiment: U.S. same-store sales rose only 0.3%, and management indicated pressure on items per order. Slower international sales, narrower store margins, stronger competition and cautious consumer spending are weighing on demand. Domino’s forecasts muted same-store sales
• Negative Sentiment: Several analysts cut price targets following the results, including Citigroup, Morgan Stanley, RBC, Baird and Bank of America. The revisions suggest that the earnings beat is viewed as less sustainable while the consumer environment remains challenging.

Analyst Ratings Changes

Several brokerages have recently weighed in on DPZ. JPMorgan Chase & Co. decreased their target price on shares of Domino’s Pizza from $380.00 to $350.00 and set an “overweight” rating for the company in a research note on Tuesday, September 29th. Wells Fargo & Company dropped their price target on Domino’s Pizza from $350.00 to $320.00 and set an “equal weight” rating on the stock in a research report on Wednesday. Morgan Stanley dropped their price target on Domino’s Pizza from $357.00 to $345.00 and set an “equal weight” rating on the stock in a research report on Wednesday. TD Cowen reaffirmed a “hold” rating and set a $320.00 price objective on shares of Domino’s Pizza in a research note on Tuesday. Finally, Evercore restated an “outperform” rating on shares of Domino’s Pizza in a research note on Thursday, July 9th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Domino’s Pizza currently has a consensus rating of “Moderate Buy” and a consensus price target of $380.87.

Insider Buying and Selling

In other Domino’s Pizza news, EVP Kelly Garcia sold 12,430 shares of the business’s stock in a transaction that occurred on Wednesday, July 22nd. The stock was sold at an average price of $322.04, for a total transaction of $4,002,957.20. Following the transaction, the executive vice president owned 9,352 shares in the company, valued at approximately $3,011,718.08. The trade was a 57.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Russell Weiner sold 10,850 shares of the stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $330.83, for a total value of $3,589,505.50. Following the transaction, the chief executive officer directly owned 43,829 shares of the company’s stock, valued at approximately $14,499,948.07. This trade represents a 19.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.89% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Soroban Capital Partners LP purchased a new position in shares of Domino’s Pizza during the 1st quarter worth $895,251,000. BlackRock Inc. acquired a new stake in shares of Domino’s Pizza during the second quarter worth $715,704,000. Van ECK Associates Corp boosted its holdings in shares of Domino’s Pizza by 937,192.2% during the second quarter. Van ECK Associates Corp now owns 478,019 shares of the restaurant operator’s stock worth $141,513,000 after purchasing an additional 477,968 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Domino’s Pizza by 247.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 527,246 shares of the restaurant operator’s stock worth $189,171,000 after purchasing an additional 375,709 shares during the last quarter. Finally, Berkshire Hathaway Inc grew its position in shares of Domino’s Pizza by 12.3% in the fourth quarter. Berkshire Hathaway Inc now owns 3,350,000 shares of the restaurant operator’s stock valued at $1,396,347,000 after purchasing an additional 368,055 shares during the period. Institutional investors and hedge funds own 94.63% of the company’s stock.

Domino’s Pizza Company Profile

Domino’s Pizza, Inc is a global quick-service restaurant company specializing in pizza delivery and carryout. Its menu includes a variety of pizzas, sides, desserts and beverages, with orders placed through digital platforms, phone ordering and participating stores.

Founded in 1960 in Ypsilanti, Michigan, Domino’s began as a small pizza business and adopted its current name in 1965. The company has expanded through a primarily franchise-based model, supported by company-owned stores and an integrated supply chain that provides food and other products to many participating locations.

Domino’s serves customers in the United States and international markets across North America, Europe, Asia-Pacific, the Middle East, Africa and other regions.