Domino’s (NASDAQ:DPZ) Posts Better-Than-Expected Sales In Q4 CY2025

Domino’s (NASDAQ:DPZ) Posts Better-Than-Expected Sales In Q4 CY2025

Petr Huřťák

Mon, February 23, 2026 at 8:28 PM GMT+9 5 min read

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DPZ

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Fast-food pizza chain Domino’s (NYSE:DPZ) reported Q4 CY2025 results topping the market’s revenue expectations , with sales up 6.4% year on year to $1.54 billion. Its GAAP profit of $5.35 per share was 0.7% below analysts’ consensus estimates.

Is now the time to buy Domino’s? Find out in our full research report.

Domino’s (DPZ) Q4 CY2025 Highlights:

**Revenue:** $1.54 billion vs analyst estimates of $1.52 billion (6.4% year-on-year growth, 1.2% beat)

**EPS (GAAP):** $5.35 vs analyst expectations of $5.39 (0.7% miss)

**Adjusted EBITDA:** $336.3 million vs analyst estimates of $316.3 million (21.9% margin, 6.3% beat)

**Operating Margin:** 19.3%, in line with the same quarter last year

**Free Cash Flow Margin:** 11.5%, up from 9.4% in the same quarter last year

**Locations:** 22,142 at quarter end, up from 21,366 in the same quarter last year

**Same-Store Sales** rose 3.7% year on year (1.6% in the same quarter last year)

**Market Capitalization:** $12.99 billion

“In 2025 we demonstrated that when we execute our Hungry for MORE strategy it delivers MORE sales, MORE stores, and MORE profits,” said Russell Weiner, Domino’s Chief Executive Officer.

Company Overview

Founded by two brothers in Michigan, Domino’s (NYSE:DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years.

With $4.94 billion in revenue over the past 12 months, Domino’s is one of the larger restaurant chains in the industry and benefits from a well-known brand that influences consumer purchasing decisions. However, its scale is a double-edged sword because there are only a finite of number places to build restaurants, making it harder to find incremental growth. For Domino’s to boost its sales, it likely needs to adjust its prices, launch new chains, or lean into foreign markets.

As you can see below, Domino’s 5.3% annualized revenue growth over the last six years was tepid, but to its credit, it opened new restaurants and increased sales at existing, established dining locations.

Domino’s Quarterly Revenue

This quarter, Domino’s reported year-on-year revenue growth of 6.4%, and its $1.54 billion of revenue exceeded Wall Street’s estimates by 1.2%.

Looking ahead, sell-side analysts expect revenue to grow 5.9% over the next 12 months, similar to its six-year rate. This projection is underwhelming and suggests its newer menu offerings will not accelerate its top-line performance yet.

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Restaurant Performance

Number of Restaurants

A restaurant chain’s total number of dining locations influences how much it can sell and how quickly revenue can grow.

Domino’s operated 22,142 locations in the latest quarter. It has opened new restaurants at a rapid clip over the last two years, averaging 3.5% annual growth, much faster than the broader restaurant sector. Additionally, one dynamic making expansion more seamless is the company’s franchise model, where franchisees are primarily responsible for opening new restaurants while Domino’s provides support.

When a chain opens new restaurants, it usually means it’s investing for growth because there’s healthy demand for its meals and there are markets where its concepts have few or no locations.

Domino’s Operating Locations

Same-Store Sales

The change in a company’s restaurant base only tells one side of the story. The other is the performance of its existing locations, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales gives us insight into this topic because it measures organic growth at restaurants open for at least a year.

Domino’s demand has been healthy for a restaurant chain over the last two years. On average, the company has grown its same-store sales by a robust 2.7% per year. This performance suggests its rollout of new restaurants could be beneficial for shareholders. When a chain has demand, more locations should help it reach more customers and boost revenue growth.

Domino’s Same-Store Sales Growth

In the latest quarter, Domino’s same-store sales rose 3.7% year on year. This performance was more or less in line with its historical levels.

Key Takeaways from Domino’s Q4 Results

We were impressed by how significantly Domino’s blew past analysts’ same-store sales expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 4.1% to $400.50 immediately after reporting.

Domino’s put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

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