DPZ · Domino's Pizza, Inc.

Domino’s Pizza delivered mixed Q1 2026 results amid a challenging macro and competitive environment, as noted by CEO Russell Weiner, who highlighted positive U.S. order count and market share growth. Revenues rose 3.5% to $1,150.6 million, fueled by higher supply chain revenues from 2.6% food basket pricing increases and elevated order volumes, alongside growth in U.S. franchise royalties and fees from net store expansion and 0.9% same-store sales gains. International royalties benefited from $3.6 million in favorable FX impacts and store growth. Supply chain gross margin expanded 0.6pp to 12.2% via procurement productivity, despite rising food costs. Operating income surged 9.6% to $230.4 million (7.9% ex-FX), aided by royalty growth, supply chain margin dollars, and a $7.8 million gain on corporate aircraft sale. However, net income dropped 6.6% to $139.8 million and diluted EPS fell 4.6% to $4.13, primarily from a $30.0 million swing in pre-tax unrealized losses on the DPC Dash investment. Free cash flow declined 10.6% to $147.0 million due to working capital changes, despite operating cash flow of $162.0 million. The leverage ratio improved to 4.3x from 4.9x. Capital return remains robust: Q1 repurchases totaled $75.1 million (188,304 shares), with $384.6 million remaining as of quarter-end, plus $94.4 million post-quarter through April 21. The Board authorized a $1.0 billion incremental buyback on April 21, lifting total capacity to $1.29 billion, signaling confidence in valuation. A $1.99/share dividend was declared for June payment. Global retail sales hit $4,739.7 million (3.4% ex-FX growth), with 180 net stores added (19 U.S., 161 international), supporting long-term franchisee and shareholder value creation.