Domino’s Pizza (DPZ) Q1 2026 Financial Results Summary

Domino’s Pizza, Inc. (Nasdaq: DPZ) released its financial results for the first quarter of 2026 on April 27, 2026. The report highlights various performance metrics, revealing both growth and challenges in a competitive marketplace. Below is a summary of key financial results and operational highlights:

Financial Highlights:

• Global Retail Sales Growth:
  • Total global retail sales increased by 3.4% compared to Q1 2025.
  • U.S. store sales grew by 2.8%, compared to a 1.3% increase in Q1 2025.
  • International store sales saw a growth of 4.0%, previously 8.2% a year ago.
• Same Store Sales Growth:
  • U.S. company-owned stores increased by 1.5%, recovering from a decline of 2.9% in Q1 2025.
  • U.S. franchise stores saw growth of 0.8%, compared to (0.4)% last year.
  • International same-store sales declined by 0.4%, down from a growth of 3.7% in the previous year.
• Store Growth:
  • Global net store count increased by 180 during the quarter.
    • U.S.: 19 net store openings.
    • International: 161 net store openings.
• Income from Operations:
  • Increased by $20.3 million, or 9.6%, totaling $230.4 million.
  • Excluding foreign currency impacts, the increase was 7.9%.
• Net Income:
  • Decreased to $139.8 million, a drop of 6.6% from $149.7 million in Q1 2025.
• Earnings Per Share (EPS):
  • Diluted EPS was $4.13, marking a decrease of 4.6% from $4.33 in the prior year.
• Cash Flow Metrics:
  • Net cash provided by operating activities: $162.0 million, down 9.5% from $179.1 million in Q1 2025.
  • Free cash flow fell to $147.0 million, a 10.6% decrease from $164.4 million in Q1 2025.
• Leverage Ratio:
  • Improved to 4.3x, down from 4.9x in Q1 2025.

Additional Financial Activities:

• Share Repurchase Program:
  • The Board approved a new $1.0 billion share repurchase program.
  • During Q1 2026, the company repurchased 188,304 shares at a total cost of $75.1 million.
  • An additional 257,545 shares were repurchased for $94.4 million after the quarter ended.
• Quarterly Dividend:
  • On April 21, 2026, the Board declared a quarterly dividend of $1.99 per share, payable on June 30, 2026, to shareholders recorded as of June 15, 2026.

Summary of Operational Insights:

Domino’s CEO Russell Weiner emphasized ongoing positive order counts and market share growth in the U.S., reinforcing the company’s capability to endure competitive pressures through its scale and profitability.

The rise in supply chain gross margin, now at 12.2%, represents an increase of 0.6 percentage points compared to Q1 2025, which was largely driven by procurement productivity though hindered by rising food basket costs.

The company's strategic focus on innovation and value delivery underlines its commitment to sustaining performance despite challenging market conditions.

Conclusion:

Domino’s Pizza demonstrated resilience with notable growth in several areas amidst a competitive landscape in Q1 2026 while facing some declines in overall net income and cash metrics. With the continuation of share repurchase initiatives and a steady quarterly dividend, the company appears to leverage its operational strengths to create long-term value for its stakeholders.

Here are the two extracted tables based on the provided press release:

Domino’s Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited)

(In thousands)

Note: The amounts in the following tables are in thousands.

	Fiscal Quarter Ended March 22, 2026	% of Total Revenues	Fiscal Quarter Ended March 23, 2025	% of Total Revenues
Revenues	$82,098		$91,598
U.S. Company-owned stores	$158,014		$151,000
U.S. franchised royalties and fees	$698,973		$669,924
International franchised royalties and fees	$80,980		$75,559
U.S. franchised advertising	$130,529		$123,975
Total revenues	$1,150,500	100.0%	$1,112,000	100.0%
Cost of sales: U.S. Company-owned stores	$72,046		$76,911
Supply chain	$614,036		$591,998
Total cost of sales	$686,082	59.6%	$668,909	60.2%
Gross margin	$464,512	40.4%	$443,147	39.8%
General and administrative	$111,406	9.7%	$109,077	9.8%
U.S. franchised advertising	$130,529	11.4%	$123,975	11.1%
Gain on sale of assets	$(7,780)	(0.7)%	$—	—
Income from operations	$230,357	20.0%	$210,095	18.9%
Other (expense) income	$(5,990)	(0.5)%	$24,027	2.2%
Interest expense	$(43,725)	(3.8)%	$(41,640)	(3.8)%
Income before provision for income taxes	$180,642	15.7%	$192,482	17.3%
Provision for income taxes	$40,831	3.5%	$42,831	3.8%
Net income	$139,811	12.2%	$149,651	13.5%
Earnings per share:
Common stock – diluted	$4.13		$4.33
Weighted average diluted shares	33,815,000		34,553,000

Domino’s Pizza, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

	March 22, 2026		December 28, 2025
Assets
Current assets:
Cash and cash equivalents	$232,922		$125,675
Restricted cash and cash equivalents	$183,628		$216,110
Accounts receivable, net	$306,098		$315,958
Inventories	$69,154		$79,189
Prepaid expenses and other	$41,377		$39,767
Advertising fund assets, restricted	$115,814		$117,502
Total current assets	$948,993		$894,201
Property, plant and equipment, net	$386,730		$324,022
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