Domino's Pizza Reports $1.11 Billion Revenue and $149.7 Million Net Income in Q1 Fiscal 2025

Domino's Pizza, Inc. reported a total revenue of $1.11 billion for the first quarter of fiscal 2025, marking a 2.5% increase from $1.08 billion in the same period last year. The company's net income rose to $149.7 million, up from $125.8 million, resulting in earnings per share of $4.37, compared to $3.62 in the prior year. The increase in revenue was primarily driven by higher U.S. franchise advertising revenues, supply chain revenues, and international franchise royalties and fees. The gross margin also improved, reaching 39.8%, up from 38.9% in the previous year.

In terms of operational performance, Domino's experienced a decline in same-store sales in the U.S., which fell by 0.5%, while international same-store sales increased by 3.7% when excluding foreign currency impacts. The company reported a net store decline of eight, with 17 new store openings in the U.S. and 25 closures internationally. The total number of stores worldwide stood at 21,358 as of March 23, 2025. The company continues to focus on its "Hungry for MORE" strategy, which aims to drive sales, store growth, and profitability.

Domino's also noted significant changes in its cost structure, with total cost of sales increasing to $668.9 million from $662.8 million. General and administrative expenses rose by 8% to $109.1 million, largely due to severance costs associated with an organizational realignment. The company reported a $24 million unrealized gain on its investment in DPC Dash, a master franchisee in China, which contributed positively to other income.

Looking ahead, Domino's management expressed optimism about future growth, citing the potential for increased sales driven by marketing initiatives and operational improvements. The company plans to continue leveraging its franchise model, which accounts for approximately 99% of its global store operations, to enhance profitability. Additionally, Domino's has declared a quarterly dividend of $1.74 per share, reflecting its commitment to returning value to shareholders. The company remains focused on navigating market challenges, including commodity price fluctuations and foreign currency exchange risks, while maintaining its competitive position in the global pizza market.