Domino's Pizza — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenues increased 3.4% to $1,185.6 million in Q3 2026, compared to $1,147.1 million in Q3 2025; for the three fiscal quarters, revenues rose 3.7% to $3,530.6 million from $3,404.3 million.
• Income from operations increased 8.3% to $241.8 million in Q3 2026 (excluding a $0.2 million negative foreign currency impact, the increase was 8.4%); for the three fiscal quarters, it rose 7.0% to $704.2 million from $658.3 million.
• Net income increased 9.2% to $152.2 million in Q3 2026, compared to $139.3 million in Q3 2025; for the three fiscal quarters, it increased 1.8% to $427.7 million from $420.1 million.
• Diluted earnings per share (EPS) rose 12.7% to $4.60 in Q3 2026 from $4.08 in Q3 2025; for the three fiscal quarters, EPS increased 4.7% to $12.80 from $12.22.
• Supply chain gross margin improved 0.9 percentage points to 12.2% in Q3 2026 from 11.3% in Q3 2025; for the three fiscal quarters, it increased 0.5 percentage points to 12.1% from 11.6%.
• Net cash provided by operating activities for the three fiscal quarters was $520.6 million, down 5.7% from $552.3 million in the prior year period.
• Capital expenditures for the three fiscal quarters were $60.8 million, up 7.2% from $56.7 million in the prior year period.
• Free cash flow for the three fiscal quarters was $459.8 million, a 7.2% decrease from $495.6 million in the prior year period.
• Leverage ratio decreased to 4.2x at the end of the third quarter of 2026 from 4.5x in the prior year period.
• Global retail sales for Q3 2026 were $4,840.4 million, up from $4,696.2 million in Q3 2025; for the three fiscal quarters, global retail sales were $14,430.1 million compared to $13,830.3 million.
• Global retail sales growth (excluding foreign currency impact) was 3.2% in Q3 2026 versus 6.3% in Q3 2025; for the three fiscal quarters, growth was 3.2% versus 5.5%.

Guidance and Future Outlook

• No specific forward guidance or numerical outlook for future periods was provided in the press release.
• Management expressed confidence in capitalizing on competitive advantages to gain market share and create long-term shareholder value.

Business Segments and Product Lines

• U.S. same store sales growth was 0.3% in Q3 2026, down from 5.2% in Q3 2025; for the three fiscal quarters, growth was 0.4% versus 2.7%.
• International same store sales growth (excluding foreign currency impact) was 0.2% in Q3 2026, down from 1.7% in Q3 2025; for the three fiscal quarters, growth was (0.1)% versus 2.5%.
• U.S. franchise store same store sales growth was 0.3% in Q3 2026 compared to 5.3% in Q3 2025.
• U.S. Company-owned store same store sales growth was 1.0% in Q3 2026 compared to 3.4% in Q3 2025.
• Food basket pricing increased 2.2% in Q3 2026 compared to Q3 2025.
• Net store growth totaled 175 stores in Q3 2026, including 26 net openings in the U.S. and 149 net openings internationally.
• Total store count reached 22,706 at the end of the third quarter of 2026, up from 22,531 at the start of the quarter.
• Franchisees accounted for 99% of Domino's stores as of the end of the third quarter of 2026.

Market and Competitive Landscape

• Domino's is identified as the largest pizza company in the world with operations in over 90 markets.
• The company noted an intensely competitive industry environment including the food service and food delivery markets.
• U.S. retail sales in 2025 were generated more than 85% via digital channels.

Risks and Challenges

• Risks include substantial indebtedness, potential credit rating downgrades, and the ability to service debt.
• Operational challenges include labor shortages, rising commodity costs (particularly cheese), fuel, and other operating expenses.
• International operations face risks related to foreign currency exchange rates, which negatively impacted international franchise royalty revenues by $0.2 million in Q3 2026.
• Other risks include supply chain disruptions, geopolitical events, cyber risks, and changes in consumer spending or tastes.

Management Commentary and Tone

• Joe Jordan, the new Chief Executive Officer, stated he is honored to lead the company and build on its iconic brand and franchise system.
• Management emphasized a strategy to get closer to customers, help franchisees grow profitability, and execute winning ideas with greater speed and consistency.
• The tone was confident, with management stating, "I believe our next chapter will be our strongest yet."

Other Key Points

• On October 6, 2026, the Board of Directors declared a quarterly dividend of $1.99 per share, payable on December 30, 2026, to shareholders of record as of December 15, 2026.
• During Q3 2026, the Company repurchased and retired 216,282 shares for $73.6 million; for the three fiscal quarters, it repurchased 848,503 shares for $304.9 million.
• As of September 6, 2026, the Company had $1.15 billion remaining in its authorized share repurchase program.
• The Company refranchised certain U.S. Company-owned store markets in the second quarter of 2026, which partially offset revenue growth from other areas.
• A pre-tax realized gain on the sale of the Company's fully depreciated corporate aircraft occurred in the first quarter of 2026.
• The Company reported a leverage ratio of 4.2x, operating within its historical range of four to six times.