Domino’s Pizza Inc. (NASDAQ:DPZ) shares are trading higher in the premarket session on Monday after the company reported fourth-quarter fiscal 2025 results and raised its quarterly dividend.
Following the results, TD Cowen analyst Andrew M. Charles reiterated a Hold rating on the stock and maintained a $460 price forecast.
Earnings Snapshot
The company reported earnings per share of $5.35, slightly below the analyst consensus estimate of $5.39.
Sales of $1.536 billion, up 6.4% year over year (Y/Y), outpaced the Street view of $1.520 billion.
Sales grew on the back of higher supply chain revenues, along with higher U.S. franchise royalties and fees, and advertising revenues.
Income from operations rose 8.0% Y/Y to $295.7 million in the quarter, thanks to an increase in franchise royalties and fees and gross margin dollar growth within the supply chain.
Gross margin in the quarter under review expanded to 39.7% from 39.2% a year ago.
U.S. company-owned store gross margin fell 5.4 percentage points from a year earlier to 10.1% in the quarter, while supply chain gross margin rose 10 basis points to 11.4%.
Other Key Metrics
U.S. same-store sales rose 3.7% Y/Y, while International same-store sales grew 0.7% on a currency-neutral basis.
Global retail sales increased 4.9% on a currency-neutral basis, aided by U.S. stores’ growth of 5.5% and International stores’ growth of 4.5% in the quarter.
Russell Weiner, Domino’s Chief Executive Officer, said, “In our international business, we delivered a remarkable 32nd consecutive year of same-store sales growth. In our U.S. business, we gained another point of market share, pacing well ahead of the QSR Pizza category, which grew again in 2025. These strong results flowed through to increased franchisee profits, showcasing our ability to drive store level profitability while providing incredible value for our customers.”
In the quarter, the company added a net 392 stores worldwide, with 96 openings in the U.S. and 320 internationally.
“Best Deal Ever” Promotion
U.S. same-store sales rose 3.0% in 2025, on top of a 3.2% gain in 2024, driven by higher customer traffic and increased average ticket sizes, helped by the launch of the Parmesan Stuffed Crust pizza and multiple waves of the “Best Deal Ever” at $9.99 promotion.
International same-store sales, excluding currency impact, increased 1.9% in 2025, following a 1.6% rise in 2024, primarily supported by stronger customer transaction growth.
Cash Flow and Shareholders’ Appreciation
The company exited the quarter with cash and equivalents worth $125.7 million.
Domino’s had a free cash flow of $671.5 million in the fiscal year 2025.
On February 18, the company increased its quarterly dividend per share by 15% to $1.99, payable on March 30 to shareholders of record as of March 13, 2026.
In the quarter, the company repurchased 188,526 shares for a total of $80.0 million. As of December 28, 2025, it had a remaining share repurchase authorization of $459.7 million.
DPZ Price Action: Domino’s Pizza shares were up 6.01% at $407.71 during premarket trading on Monday, according to Benzinga Pro data.
Photo by Leighton Collins via Shutterstock
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