Domino’s Pizza (DPZ) posted a mixed set of results for the second quarter, with solid revenue growth and market share gains offset by a slight earnings miss.
Yet the company’s strategic moves—including new menu offerings, aggregator partnerships, and carryout strength—helped fuel optimism, pushing shares modestly higher following the report.
Same-Store Sales Rebound in the U.S. with Help from Stuffed Crust and Aggregator Partnerships
Domino’s delivered a 3.4% increase in U.S. same-store sales in the second quarter, marking a clear turnaround from the 0.5% decline in the previous quarter. That acceleration came despite tough year-over-year comparisons and was driven by robust 5.8% growth in carryout sales, while delivery inched up by 1.5%.
The launch of the Parmesan Stuffed Crust Pizza—a long-awaited addition to the menu—proved a success, lifting both transaction volumes and average order value. CEO Russell Weiner called it one of the company’s most successful product launches, helping Domino’s close a competitive gap in the premium crust category.
Internationally, same-store sales rose 2.4%, a slower pace than the 3.7% posted in Q1 but still solid given economic headwinds. Performance was buoyed by strength in Asia, particularly India, and steady growth in Canada and Mexico.
Domino’s also completed its nationwide rollout on DoorDash in Q2, adding to its presence on Uber Eats. These partnerships are expected to gain traction in the second half of the year as awareness builds and co-marketing efforts ramp up.
Domino’s delivered a 3.4% increase in U.S. same-store sales in the second quarter, marking a clear turnaround from the 0.5% decline in the previous quarter. That acceleration came despite tough year-over-year comparisons and was driven by robust 5.8% growth in carryout sales, while delivery inched up by 1.5%.
The launch of the Parmesan Stuffed Crust Pizza—a long-awaited addition to the menu—proved a success, lifting both transaction volumes and average order value. CEO Russell Weiner called it one of the company’s most successful product launches, helping Domino’s close a competitive gap in the premium crust category.
Internationally, same-store sales rose 2.4%, a slower pace than the 3.7% posted in Q1 but still solid given economic headwinds. Performance was buoyed by strength in Asia, particularly India, and steady growth in Canada and Mexico.
Domino’s also completed its nationwide rollout on DoorDash in Q2, adding to its presence on Uber Eats. These partnerships are expected to gain traction in the second half of the year as awareness builds and co-marketing efforts ramp up.
Earnings Dip on Investment Losses Despite Solid Operational Growth
While revenue rose 4.3% year-over-year to $1.15 billion, in line with analyst expectations, earnings per share came in at $3.81—below the $3.94 consensus. The shortfall was largely due to a $27.4 million loss tied to Domino’s investment in DPC Dash, its franchise partner in China and Hong Kong, and a higher tax burden.
Still, income from operations climbed nearly 15% to $225 million, showing underlying strength in the core business. Global retail sales, excluding currency impacts, rose 5.6% compared to the same quarter last year.
Domino’s also continued to return capital to shareholders, repurchasing over $150 million in stock and declaring a quarterly dividend of $1.74 per share, payable at the end of September.
Domino’s Bets on Value, Innovation, and Delivery Scale for Second-Half Momentum
Despite pressures on consumer spending, Domino’s has leaned into its value proposition—emphasizing affordability through promotions like the “Best Deal Ever”—and sharpened its competitive edge with digital innovation and broad delivery access.
New restaurant openings remain a growth lever as well. The chain added a net 178 stores globally in Q2, helping it extend its market leadership in the quick-service pizza category.
Even with the strong Q2 performance, the company maintained its full-year guidance of 3% U.S. same-store sales growth, which may have tempered some investor enthusiasm. Still, the combination of product innovation, expanded delivery access, and loyalty program enhancements puts Domino’s in a strong position heading into the second half of the year.
Conclusion
Domino’s Q2 report reflected the complexities of a business navigating both economic headwinds and strategic transformation. While profits fell short due to non-operational items, the company’s ability to drive meaningful same-store sales growth and gain market share underscores the effectiveness of its recent initiatives. As it capitalizes on new products and delivery partnerships, Domino’s looks well-positioned to deliver value for customers—and potentially investors—in the quarters ahead.
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