AI Takeaway
Domino's Pizza reported Q2 FY2026 revenue of $1,194.4M (+4.3% YoY) and net income of $135.8M (+3.6% YoY), driven by global net store growth of 209 stores and higher supply chain revenues, though U.S. and international same store sales growth remained soft at +0.1% and -0.1%, respectively, and the company continues to operate with a stockholders' deficit of -$3,982.4M.
Revenue
$1.19B
++4.30% YoY
EPS (Basic)
$4.09
++6.51% YoY
Gross Margin
40.0%
-0.22% YoY
Operating Income
$232.04M
++3.11% YoY
Filed · Source: SEC EDGAR 10-Q filing
Dominos Pizza (DPZ) reported Q2 FY2026 revenue of $1.19B, up 4.3% year over year. The company posted net income of $135.75M, up 3.6% from a year earlier, with diluted EPS of $4.07. Gross margin was 40.0%.
Domino's added 209 net new stores globally in Q2 FY2026 (26 net U.S. openings and 183 net international openings), bringing total store count to 22,531. Trailing four quarters net store growth reached 995 stores, which management cites as the primary driver of higher franchise royalties, advertising revenue, and supply chain volumes.
Source: 10-Q Item 2 MD&A
U.S. same store sales grew only 0.1% in Q2 FY2026, rolling over a 3.4% increase in Q2 FY2025, driven by higher transaction counts offset by lower average ticket. International same store sales (ex-FX) declined 0.1% in Q2 FY2026 versus a 2.4% increase a year ago.
Source: 10-Q Item 2 MD&A
Supply chain revenues increased $44.6 million, or 6.5%, in Q2 FY2026, driven by higher order volumes and a 2.2% increase in food basket pricing to stores, which management estimates added approximately $19 million to supply chain revenue in the quarter.
Source: 10-Q Item 2 MD&A
Revenues from U.S. Company-owned stores fell $10.6 million, or 11.5%, in Q2 FY2026, primarily due to the refranchising of certain U.S. Company-owned store markets in both Q2 FY2026 and Q2 FY2025, partially offset by a 2.1% increase in same store sales for these stores.
Source: 10-Q Item 2 MD&A
Consolidated gross margin as a percentage of revenue decreased 0.3 percentage points to 40.0% in Q2 FY2026 from 40.3% in Q2 FY2025, as U.S. Company-owned store gross margin fell 4.2 percentage points, partially offset by a 0.2 percentage point improvement in supply chain gross margin.
Source: 10-Q Item 2 MD&A
The company reported stockholders' equity of -$3,982.4 million, essentially unchanged from -$3,974.6 million a year ago, reflecting a highly leveraged capital structure driven by continued debt-funded share repurchases and dividends. This structure exposes the company to elevated financial risk if earnings or cash flow deteriorate.
Source: 10-Q Balance Sheet (XBRL)
Cash and equivalents fell 39.6% YoY to $164.8 million, while year-to-date financing cash outflows increased to -$314.3 million from -$261.3 million, driven by higher share buybacks ($234.6M YTD, up 15.6%) and dividends ($68.2M YTD, up 13.3%). Continued aggressive capital return amid falling cash reserves could pressure liquidity.
Source: 10-Q Cash Flow Statement (XBRL)
U.S. same store sales grew just 0.1% and international same store sales (ex-FX) declined 0.1% in Q2 FY2026, both decelerating sharply from stronger growth rates in the prior-year quarter (+3.4% U.S., +2.4% international). Persistently weak same-store sales could signal softening consumer demand or increased competitive pressure.
Source: 10-Q Item 2 MD&A
U.S. Company-owned store gross margin declined 4.2 percentage points in Q2 FY2026 versus the prior year, reflecting cost pressures in this segment even as revenue from these stores fell due to refranchising activity. Continued margin erosion in this segment could weigh on overall profitability if not offset by franchise and supply chain growth.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.19B | $1.15B | +4.30% |
Cost of Revenue | $716.2M | $684.17M | +4.68% |
Gross Profit | $478.23M | $460.97M | +3.74% |
Operating Income | $232.04M | $225.04M | +3.11% |
Net Income | $135.75M | $131.09M | +3.55% |
EPS (Basic) | $4.09 | $3.84 | +6.51% |
EPS (Diluted) | $4.07 | $3.81 | +6.82% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $1.76B | $1.81B | -2.65% |
Current Assets | $905.42M | $1.01B | -10.14% |
Current Liabilities | $588.67M | $1.69B | -65.13% |
Stockholders' Equity | $-3.98B | $-3.97B | -0.20% |
Cash & Equivalents | $164.84M | $272.86M | -39.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $352.6M | $366.86M | -3.89% |
Investing Cash FlowYTD | $-24.65M | $14.79M | -266.61% |
Financing Cash FlowYTD | $-314.32M | $-261.31M | -20.28% |
Dividends PaidYTD | $68.24M | $60.26M | +13.25% |
Share BuybacksYTD | $234.62M | $203.04M | +15.55% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 40.0% | 40.3% | -0.22% |
Operating Margin | 19.4% | 19.7% | -0.23% |
Net Margin | 11.4% | — | — |
ROE | -3.4% | — | — |
ROA | 7.7% | — | — |
Current Ratio | $1.538 | — | — |
Expected release date, analyst estimates & what to watch
Domino's Pizza delivered solid Q1 2026 revenue growth of 3.5% to $1.15B and strong operating income expansion of 9.6%, though net income declined 6.6% to $139.8M, likely due to higher interest or tax costs below the operating line.
Domino's Pizza (DPZ) delivered solid FY2025 results with revenue growing 5.0% to $4.94B, operating income rising 8.5% to $954M, and operating cash flow surging 26.8% to $792M, while returning significant capital to shareholders through dividends and buybacks.
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The filing data provided does not include analyst consensus estimates, so a beat/miss cannot be confirmed from this source. What is confirmed is that DPZ reported revenue of $1,194.4M (+4.3% YoY) and diluted EPS of $4.07 (+6.8% YoY) for Q2 FY2026.
Total revenue grew 4.3% YoY to $1,194.4M, driven primarily by a 6.5% increase in supply chain revenue ($731.7M) from higher order volumes and food basket pricing, plus higher U.S. and international franchise royalties tied to net store growth of 209 stores in the quarter.
U.S. same store sales grew just 0.1% in Q2 FY2026, decelerating sharply from a 3.4% increase in Q2 FY2025, while international same store sales (excluding FX) declined 0.1% versus a 2.4% gain a year earlier, according to the MD&A.
DPZ maintains a current ratio of 1.54, indicating adequate short-term liquidity, but reports negative stockholders' equity of -$3,982.4M due to its leveraged, franchise-driven capital structure funded by securitized debt. Cash and equivalents declined 39.6% YoY to $164.8M amid continued share buybacks ($234.6M YTD) and dividends ($68.2M YTD).
Key risks inferred from the filing data include the company's persistently negative stockholders' equity position, declining cash balances alongside rising financing outflows for buybacks and dividends, and decelerating same-store sales growth in both U.S. and international markets. Margin compression in U.S. Company-owned stores was also noted as a pressure point.