Domino's Pizza, Inc.

What they do

Domino's is primarily a franchisor that generates revenue by charging royalties and fees to franchisees for use of the Domino's brand, and by selling food and other products to franchisees through its supply chain operations mainly in the U.S. and Canada. It also operates a number of Company-owned stores in the U.S. and grants geographical rights to master franchisees in international markets.

Revenue drivers

• Franchise royalties and fees — Ongoing percent-of-sales royalty fees paid by franchisees for use of the Domino's brand marks, plus fees, represent a core asset-light revenue stream tied to retail sales at franchised stores.
• Supply chain operations — Domino's sells food and other products to franchisees, primarily in the U.S. and Canada, and also makes fresh hand-tossed dough distributed to stores around the world.
• U.S. Company-owned stores — Domino's operates a number of Company-owned stores in the U.S., which generate retail sales in addition to the franchised system.
• International master franchise rights — In international markets, Domino's generally grants geographical rights to master franchisees who develop their area and may sub-franchise and sell food to sub-franchisees.

Recent performance

In the second quarter of 2026, global retail sales grew 3.0% excluding foreign currency impact, to $4.85 billion, with U.S. same store sales growth of 0.1% and international same store sales decline of 0.1% excluding foreign currency impact. Global net store growth was 209 stores, including 26 net U.S. openings and 183 net international openings. Income from operations increased 3.1%, or 2.6% excluding a $1.1 million positive foreign currency impact on international franchise royalty revenues. For the first two fiscal quarters of 2026, global retail sales rose 3.2% to $9.59 billion.

Strategy

Domino's is pursuing its 'Hungry for MORE' strategy, which aims to generate MORE sales, MORE stores and MORE profits through four imperatives: Most Delicious Food, Operational Excellence, Renowned Value, and Enhanced by Best-in-Class Franchisees. The company emphasizes value pricing, menu breadth beyond pizza, and convenience and efficiency for customers. It also cites order count growth as an important driver of long-term success, including through participation in the third-party order aggregation marketplace.

Risks

• Intense QSR competition — Domino's competes in the U.S. primarily against Pizza Hut, Papa John's and Little Caesars Pizza, as well as regional and local establishments, and internationally against Pizza Hut, Papa John's and country-specific competitors.
• Delivery aggregator pressure — Order and delivery aggregators have grown in size and scale, creating competition for both customers and drivers and pressure to grow the business to maintain market share.
• Substantial indebtedness — Domino's carries substantial indebtedness and notes risks including its ability to incur additional indebtedness or refinance or renegotiate key terms in the future, and the impact of a credit rating downgrade.
• Commodity and labor cost inflation — Labor shortages or increases in prices of food, particularly cheese, fuel and other commodity costs, labor, utilities, insurance and employee benefits could affect operating expenses.

Outlook

Management did not provide specific numerical guidance in the excerpts. CEO Russell Weiner said order count growth is the most important driver of long-term success and that Domino's generated order count growth across both delivery and carryout in the second quarter despite broader U.S. QSR pressure on consumer demand. He stated that new customers strengthen the long-term growth flywheel by engaging with the loyalty program, and that his conviction in Domino's long-term growth potential remains strong.