Domino’s Pizza, Inc. (NASDAQ:DPZ) reported first-quarter results on Monday that came in below Wall Street forecasts, sending shares down 3.8% in premarket trading.
The company posted adjusted earnings per share of $4.13, missing analyst estimates of $4.28. Revenue totaled $1.15 billion, also falling short of the $1.17 billion consensus, though it marked a 3.5% increase from $1.11 billion in the same period last year.
Modest Same-Store Sales Growth and Continued Expansion
Domino’s recorded U.S. same-store sales growth of 0.9%, while international same-store sales declined 0.4% when excluding foreign currency effects. Global retail sales rose 3.4% on the same basis, supported by the addition of 180 net new stores during the quarter—19 in the U.S. and 161 internationally.
“Q1 2026 represented another quarter of positive order count and market share growth for Domino’s in the U.S.,” said Russell Weiner, Chief Executive Officer. “In an intensifying macro and competitive environment, our scale advantage and best-in-class store-level profitability uniquely position Domino’s in the QSR Pizza category to sustain the value and innovation customers demand.”
Operating Gains Offset by Investment Losses
Income from operations increased 9.6% to $230.4 million, or 7.9% excluding a $3.6 million favorable impact from foreign exchange rates. The improvement was driven by higher franchise royalty income and a 0.6 percentage point expansion in supply chain gross margin. Operating results also benefited from a $7.8 million pre-tax gain tied to the sale of the company’s corporate aircraft.
Net income declined 6.6% to $139.8 million, primarily due to a $30.0 million unfavorable swing in unrealized losses related to its investment in DPC Dash Ltd. Free cash flow fell 10.6% to $147.0 million from $164.4 million a year earlier.
Shareholder Returns Expanded
Domino’s Board approved a new $1.0 billion share repurchase authorization and declared a quarterly dividend of $1.99 per share, which is scheduled to be paid on June 30, 2026.
More about Domino’s Pizza, Inc.
Domino’s Pizza, Inc. is a global quick-service restaurant chain specializing in pizza delivery and carryout, with a large international franchise network and a focus on digital ordering and operational efficiency.