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.