Domino’s first quarter saw revenue growth below Wall Street expectations, but non-GAAP profitability exceeded consensus, with the market largely unmoved by the results. Management attributed performance to the continued execution of its "Hungry for MORE" strategy, noting that market share gains were achieved despite ongoing macroeconomic headwinds. CEO Russell Weiner highlighted the importance of operational improvements and the introduction of new menu items, such as the Parmesan Stuffed Crust pizza, although its late-quarter launch limited its immediate impact. Management also emphasized that U.S. carryout remained stable while delivery faced pressure from lower-income consumers, and international markets, especially Canada and India, contributed positively.
Is now the time to buy DPZ? Find out in our full research report (it’s free).
Domino's (DPZ) Q1 CY2025 Highlights:
- Revenue: $1.11 billion vs analyst estimates of $1.13 billion (2.5% year-on-year growth, 1.2% miss)
- Adjusted EPS: $4.33 vs analyst estimates of $4.07 (6.3% beat)
- Adjusted EBITDA: $230.5 million vs analyst estimates of $235.8 million (20.7% margin, 2.3% miss)
- Operating Margin: 18.9%, in line with the same quarter last year
- Locations: 21,358 at quarter end, up from 20,755 in the same quarter last year
- Same-Store Sales rose 1.6% year on year (3.2% in the same quarter last year)
- Market Capitalization: $15.32 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 Domino's’s Q1 Earnings Call
- Danilo Gargiulo (Bernstein) asked about geopolitical pressures and their impact on international demand. CFO Sandeep Reddy said volatility and potential demand impacts are reflected in the company’s international same-store sales guidance.
- Brian Bittner (Oppenheimer) inquired how DoorDash might contribute to comps versus previous Uber Eats integration. CEO Russell Weiner indicated DoorDash is expected to be about twice as large as Uber Eats in pizza sales volume, with both platforms now considered part of the core delivery business.
- David Tarantino (Baird) questioned the impact of stuffed crust on sales mix. Weiner explained that while the launch was late in the quarter, early results show strong customer adoption and that it could become a significant sales driver.
- Peter Saleh (BTIG) sought clarity on domestic unit growth and the effect of tariffs on store development. Reddy confirmed guidance for 175 net new stores remains unchanged, with minimal tariff impact anticipated.
- Sara Senatore (Bank of America) asked how macroeconomic pressures influence comp guidance. Reddy acknowledged that persistent or worsening macro conditions could put pressure on meeting sales targets, but the guidance already assumes a tough environment.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the scale and customer adoption of DoorDash as a delivery channel, (2) sustained performance of new menu items like Parmesan Stuffed Crust, and (3) trends in international markets, especially regarding store closures and geopolitical risks. The execution of loyalty and promotional strategies will also be key indicators of future momentum.
Domino's currently trades at $458.63, down from $487.28 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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