Domino’s third quarter saw a positive market reaction, driven by strong U.S. sales momentum and improved profitability. Management credited growth to its “Best Deal Ever” promotion, expanded value offerings, and operational improvements that supported both carryout and delivery channels. CEO Russell Weiner emphasized that the company’s ability to execute complex promotions and successfully launch new menu items, like Parmesan stuffed crust pizza, contributed to higher order counts and meaningful market share gains.
Is now the time to buy DPZ? Find out in our full research report (it’s free for active Edge members).
Domino's (DPZ) Q3 CY2025 Highlights:
- Revenue: $1.15 billion vs analyst estimates of $1.14 billion (6.2% year-on-year growth, 0.9% beat)
- Adjusted EPS: $4.08 vs analyst estimates of $3.96 (2.9% beat)
- Adjusted EBITDA: $243.6 million vs analyst estimates of $235.5 million (21.2% margin, 3.4% beat)
- Operating Margin: 19.5%, up from 18.4% in the same quarter last year
- Locations: 21,750 at quarter end, up from 21,002 in the same quarter last year
- Same-Store Sales rose 3.4% year on year (1.9% in the same quarter last year)
- Market Capitalization: $14.29 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Domino's’s Q3 Earnings Call
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Dennis Geiger (UBS) asked about the sustainability of U.S. same-store sales given macro headwinds. CFO Sandeep Reddy reiterated the 3% target but acknowledged that worsening economic pressures could be a risk to achieving it.
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David Palmer (Evercore ISI) questioned industry-wide delivery promotions and their impact. CEO Russell Weiner argued Domino’s value is sustainable due to operational scale, contrasting competitors’ “desperate discounting.”
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Brian Bittner (Oppenheimer) pressed on the risk of over-reliance on the “Best Deal Ever.” Weiner emphasized franchisee profitability and a varied promotional arsenal to avoid long-term consumer dependence on a single offer.
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John Ivankoe (JPMorgan) asked about U.S. store growth trajectory. Reddy explained that strong franchisee economics and a broadening builder base support visibility for continued expansion through 2028.
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Lauren Silberman (Deutsche Bank) raised concerns about the consumer environment. Reddy stated that the macro environment has been tough but manageable, with the company relying on its promotional toolkit to offset any intensification.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be watching (1) the continued performance and consumer response to Domino’s brand refresh and digital upgrades, (2) the build-out and incremental sales impact of aggregator partnerships, and (3) the pace of U.S. and international store openings. The effectiveness of new menu offerings and the ability to sustain promotions without eroding margins will also be key indicators of execution.
Domino's currently trades at $423.25, up from $408.33 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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