Investing Port
   
  1. Home
  2. Business

Domino’s Pizza Reports Mixed First-Quarter 2025 Financial Results​

Domino’s Pizza Reports Mixed First-Quarter 2025 Financial Results​


Domino’s Pizza, Inc., the world’s largest pizza company, announced its financial results for the first quarter of 2025, reflecting a combination of solid growth in some areas and challenges in others.

Financial Performance​

In Q1 2025, Domino’s recorded a 2.5% rise in revenue, reaching $1.11 billion, compared to $1.08 billion in the same period last year. Net income showed robust growth, climbing 18.9% to $149.7 million, while diluted earnings per share (EPS) increased by 20.9% to $4.33, up from $3.58 in Q1 2024.

Despite these gains, income from operations dipped slightly by 0.2%, totaling $210.1 million. Adjusting for a $3.2 million negative impact from foreign currency fluctuations, income from operations would have risen 1.4%.


Business and Operational Update​

Domino’s achieved a 4.7% growth in global retail sales, excluding currency impacts. However, U.S. same-store sales edged down by 0.5%, while international same-store sales increased by 3.7%, excluding foreign exchange effects.

The company reported a global net store decline of 8 locations, with 17 net openings in the U.S. and 25 net closures internationally.

Operationally, gross margin at U.S. company-owned stores decreased by 1.5 percentage points to 16.0%, driven by higher food costs and reduced sales leverage. Conversely, supply chain gross margin improved by 0.5 percentage points, reaching 11.6%, thanks to stronger procurement efficiency.


Strategic Initiatives and Capital Management​

Continuing its capital return strategy, Domino’s repurchased 115,280 shares of common stock for $50 million during Q1. Additionally, the company declared a quarterly dividend of $1.74 per share, payable on June 30, 2025, to shareholders on record as of June 13, 2025.
Net cash provided by operating activities surged 45% to $179.1 million, while capital expenditures fell 26.9% to $14.7 million, boosting free cash flow by 59.1% to $164.4 million.


CEO Commentary​

Russell Weiner, Chief Executive Officer of Domino’s, remarked:
"Our Q1 results highlight the strength of our Hungry for MORE strategy, which continues to drive market share gains in the QSR pizza category across both our U.S. and international markets. Consistent market share growth is a testament to our ability to focus on controllable factors, a critical ingredient for long-term success.



Looking Ahead​

Domino’s remains committed to its strategic goals of generating more sales, more stores, and more profits every year. The company aims to sustain its growth momentum and deliver long-term value to franchisees and shareholders, even amidst a challenging global economic backdrop.

Be the first to comment!

You must login to comment

Related Posts

 
 
 

Loading