Domino's Pizza Reports 6.2% Revenue Growth to $1.15 Billion in Q3 2025

Domino's Pizza, Inc. reported its financial results for the third quarter and the first three fiscal quarters of 2025, revealing a total revenue of $1.15 billion for the quarter, a 6.2% increase from $1.08 billion in the same period last year. For the three fiscal quarters ending September 7, 2025, revenues reached $3.40 billion, up 4.3% from $3.26 billion in the prior year. The company's net income for the third quarter was $139.3 million, a decrease from $146.9 million in the same quarter of 2024, while year-to-date net income increased slightly to $420.1 million from $414.7 million.

The financial performance reflects a notable shift in revenue sources, with U.S. franchise royalties and fees rising 9.1% to $157.2 million in the third quarter, and supply chain revenues increasing 7.0% to $697.0 million. However, revenues from U.S. company-owned stores decreased by 7.2% to $82.7 million, primarily due to the refranchising of 36 stores in Maryland earlier in the year. The overall gross margin improved to 40.1% in the third quarter, up from 39.2% in the previous year, driven by higher franchise royalty revenues and supply chain gross margin growth.

Domino's continued its strategic expansion, achieving a global net store growth of 214 locations in the third quarter, including 29 new stores in the U.S. and 185 internationally. The company now operates over 21,700 locations across more than 90 markets. Same-store sales in the U.S. increased by 5.2%, while international same-store sales rose by 1.7%, excluding foreign currency impacts. The company attributed these increases to successful marketing initiatives, including the "Best Deal Ever" promotion and the launch of new menu items like the Parmesan Stuffed Crust.

In terms of operational changes, Domino's completed a significant refinancing transaction in September 2025, issuing $1 billion in new notes to repay existing debt. This refinancing included $500 million in five-year notes and $500 million in seven-year notes, aimed at improving liquidity and managing long-term debt, which stood at approximately $4.82 billion as of September 7, 2025. The company also repurchased $274.7 million in common stock during the fiscal year, reflecting its commitment to returning value to shareholders.

Looking ahead, Domino's remains optimistic about its growth trajectory, emphasizing its "Hungry for MORE" strategy, which focuses on increasing sales, expanding store counts, and enhancing profitability. The company expects to leverage its strong brand recognition and operational efficiencies to navigate market challenges and capitalize on growth opportunities in both domestic and international markets.