# Domino’s Pizza Inc. (DPZ), NASDAQ, Q2 2025 Financial Results
Domino’s Pizza, Inc. (Nasdaq: DPZ) reported its second quarter financial results for 2025 on July 21, 2025.
## Summary of Financial Results
– **Global Retail Sales Growth**:
– Total: **5.6%** increase compared to Q2 2024
– U.S. Stores: **5.1%** growth (Q2 2024: +6.8%)
– International Stores: **6.0%** growth (Q2 2024: +7.7%)
– **Same Store Sales Growth**:
– U.S. Company-owned Stores: **2.6%** growth (Q2 2024: +4.5%)
– U.S. Franchise Stores: **3.4%** growth (Q2 2024: +4.8%)
– International Stores: **2.4%** growth (Q2 2024: +2.1%)
– **Store Count**:
– Total U.S. Stores at June 15, 2025: **7,061** (includes 30 new openings)
– Total International Stores at June 15, 2025: **14,475** (includes 148 new openings)
– **Financial Performance**:
– Total Revenues: **$1,145.1 million**, up from **$1,097.7 million** (+4.3%)
– U.S. Company-owned Store Gross Margin: **15.6%** (decrease of **2.0pp** from Q2 2024)
– Supply Chain Gross Margin: **11.8%**, up by **0.5pp** from Q2 2024
– Income from Operations: **$225.0 million**, an increase of **14.8%**
– Net Income: **$131.1 million**, a decrease of **7.7%** (Q2 2024: $142.0 million)
– Diluted Earnings Per Share (EPS): **$3.81**, down **5.5%** from Q2 2024’s **$4.03**
– Leverage Ratio: **4.7x**, down from **5.0x** in Q2 2024
– **Cash Flow**:
– Net Cash Provided by Operating Activities: **$366.9 million**, up **33.8%** from Q2 2024
– Free Cash Flow: **$331.7 million**, up **43.9%** from Q2 2024
– **Capital Expenditures**:
– **$35.2 million**, down **19.5%** from Q2 2024
### Quarterly Dividend and Share Repurchase
– **Quarterly Dividend**: The Board of Directors declared a dividend of **$1.74** per share, to be paid on September 30, 2025, for shareholders of record as of September 15, 2025.
– **Share Repurchases**: In Q2 2025, 315,696 shares were repurchased for **$150.0 million**. For the two fiscal quarters of 2025, 430,976 shares were repurchased at a total cost of **$200.0 million**.
### Summary of Key Metrics
– **Total global retail sales**: $4,669.8 million in Q2 2025; compared to $4,428.2 million in Q2 2024.
– **U.S. franchise royalties and fees**: Increased to **$156.3 million** from **$147.6 million** in Q2 2024.
– **General and administrative expenses**: Decreased from **$115.9 million** in Q2 2024 to **$107.6 million** in Q2 2025.
– **Provision for Income Taxes**: Increased to **$37.2 million**, compared to **$25.0 million** in Q2 2024.
### Conclusion
Domino’s financial results for Q2 2025 reflect a mix of performance indicators, with notable growth in revenues and cash flow, despite a decline in net income and diluted EPS compared to the previous year. The company continues to expand its store footprint internationally while navigating economic challenges and maintaining strong operational metrics.
### Domino’s Pizza, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited)
| Fiscal Quarter Ended | % of Total | % of Total | ||
|---|---|---|---|---|
| June 15, 2025 | Revenues | June 16, 2024 | Revenues | |
| (In thousands, except share and per share data) | ||||
| Revenues: | ||||
| U.S. Company-owned stores | $92,456 | $92,264 | ||
| U.S. franchise royalties and fees | $156,261 | $147,576 | ||
| Supply chain | $687,062 | $659,244 | ||
| International franchise royalties and fees | $77,164 | $73,696 | ||
| U.S. franchise advertising | $132,201 | $124,956 | ||
| Total revenues | $1,145,144 | 100.0 % | $1,097,736 | 100.0 % |
| Cost of sales: | ||||
| U.S. Company-owned stores | $78,073 | $76,059 | ||
| Supply chain | $606,101 | $584,646 | ||
| Total cost of sales | $684,174 | 59.7 % | $660,705 | 60.2 % |
| Gross margin | $460,970 | 40.3 % | $437,031 | 39.8 % |
| General and administrative | $107,608 | 9.4 % | $115,947 | 10.5 % |
| U.S. franchise advertising | $132,201 | 11.5 % | $124,956 | 11.4 % |
| Refranchising (gain) loss | $(3,883) | (0.3 % ) | $25 | 0.0 % |
| Income from operations | $225,044 | 19.7 % | $196,103 | 17.9 % |
| Other (expense) income | $(15,974) | (1.4 % ) | $11,398 | 1.0 % |
| Interest expense, net | $(40,819) | (3.6 % ) | $(40,502) | (3.7 % ) |
| Income before provision for income taxes | $168,251 | 14.7 % | $166,999 | 15.2 % |
| Provision for income taxes | $37,160 | 3.3 % | $25,021 | 2.3 % |
| Net income | $131,091 | 11.4 % | $141,978 | 12.9 % |
| Earnings per share: | ||||
| Common stock – diluted | $3.81 | $4.03 | ||
| Weighted average diluted shares | 34,401,016 | 35,224,080 |
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### Domino’s Pizza, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)
| June 15, 2025 | December 29, 2024 | |
|---|---|---|
| (In thousands) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $272,859 | $186,126 |
| Restricted cash and cash equivalents | $211,734 | $195,370 |
| Accounts receivable, net | $284,606 | $309,104 |
| Inventories | $69,705 | $70,919 |
| Prepaid expenses and other | $45,556 | $40,363 |
| Advertising fund assets, restricted | $123,098 | $103,396 |
| Total current assets | $1,007,558 | $905,278 |
| Property, plant and equipment, net | $290,270 | $301,179 |
| Operating lease right-of-use assets | $222,676 | $210,302 |
| Investment in DPC Dash | $46,667 | $82,699 |
| Other assets | $244,122 | $237,555 |
| Total assets | $1,811,293 | $1,737,013 |
| Liabilities and stockholders’ deficit | ||
| Current liabilities: | ||
| Current portion of long-term debt | $1,149,989 | $1,149,679 |
| Accounts payable | $131,088 | $85,898 |
| Operating lease liabilities | $43,003 | $39,920 |
| Advertising fund liabilities | $120,790 | $101,567 |
| Other accrued liabilities | $243,311 | $235,398 |
| Total current liabilities | $1,688,181 | $1,612,462 |
| Long-term liabilities: | ||
| Long-term debt, less current portion | $3,825,847 | $3,825,659 |
| Operating lease liabilities | $192,739 | $181,983 |
| Other accrued liabilities | $79,153 | $79,200 |
| Total long-term liabilities | $4,097,739 | $4,086,842 |
| Total stockholders’ deficit | $(3,974,627) | $(3,962,291) |
| Total liabilities and stockholders’ | $1,811,293 | $1,737,013 |
| deficit |
