Domino's Pizza Reports 4.3% Revenue Growth in Q2 Fiscal 2025

Domino's Pizza, Inc. reported its financial results for the second quarter and the first half of fiscal 2025, revealing a total revenue of $1.145 billion for the quarter, a 4.3% increase from $1.098 billion in the same period last year. For the first half of the fiscal year, revenues reached $2.257 billion, up 3.4% from $2.182 billion in the prior year. The company's net income for the second quarter was $131.1 million, a decrease from $142.0 million in the previous year, while net income for the first half was $280.7 million, compared to $267.8 million in the same period last year. Earnings per share for the second quarter were $3.84, down from $4.07 a year earlier.

The financial performance reflects a mixed picture, with a notable increase in supply chain revenues, which rose by 4.2% in the second quarter, driven by higher food basket pricing and increased order volumes. However, the company faced challenges, including a decline in U.S. Company-owned store revenues due to the refranchising of 36 stores in Maryland. The gross margin improved to 40.3% in the second quarter, up from 39.8% a year earlier, attributed to higher franchise royalty revenues and improved supply chain margins.

Domino's continued its strategic focus on growth, achieving a global net store increase of 178 locations in the second quarter, including 30 new stores in the U.S. and 148 internationally. The company emphasized its "Hungry for MORE" strategy, which aims to enhance sales, expand store presence, and increase profitability. Same-store sales in the U.S. rose by 3.4% in the second quarter, while international same-store sales increased by 2.4%, excluding foreign currency impacts. The company also reported a significant increase in customer transaction counts, aided by the launch of new products like the Parmesan Stuffed Crust.

Operationally, Domino's reported a decrease in general and administrative expenses, primarily due to the absence of costs associated with its Worldwide Rally event, which occurs biennially. The company also refranchised 36 U.S. Company-owned stores, generating a pre-tax gain of $3.9 million. However, the company recorded a net loss of $16 million related to its investment in DPC Dash, its master franchisee in China, reflecting market volatility.

Looking ahead, Domino's remains optimistic about its growth trajectory, supported by its strong brand recognition and operational efficiencies. The company plans to continue leveraging its franchise model to drive sales and profitability while managing its debt levels, which stood at approximately $4.98 billion as of June 15, 2025. The company expects to utilize its cash flows and available borrowings to fund working capital needs, invest in growth opportunities, and return capital to shareholders through dividends and share repurchases.