Domino's Pizza Stock Down On Weak Q1 Profit, Despite Comps Growth

(RTTNews) - Domino's Pizza, Inc., the largest pizza company in the world, Monday reported weak profit in its first quarter, despite growth in revenues and same store sales with improved performance mainly in U.S. stores.

In pre-market activity, the shares were losing around 4.07 percent, trading at $353.20.

Russell Weiner, Domino's Chief Executive Officer, stated, "Q1 2026 represented another quarter of positive order count and market share growth for Domino's in the U.S. In an intensifying macro and competitive environment, our scale advantage and best-in-class store level profitability uniquely position Domino's in the QSR Pizza category to sustain the value and innovation customers demand. My belief that we can continue to outperform our competition and take meaningful share in 2026 and beyond remains as strong as it has ever been." On April 21, the company's Board of Directors declared a $1.99 per share quarterly dividend for shareholders of record as of June 15 to be paid on June 30.

The Board also authorized an additional share repurchase program to repurchase up to $1.0 billion of its common stock, in addition to the $290.2 million that was previously remaining for a total authorization of $1.29 billion for future share repurchases.

In its first quarter, net income came in at $139.81 million, down 6.6 percent from $149.65 million last year. Earnings per share fell 4.6 percent to $4.13 from $4.33 a year ago.

The latest results mainly reflected an unfavorable change of $30.0 million in the pre-tax unrealized losses and gains associated with the remeasurement of the company's investment in DPC Dash Ltd., partially offset by higher income from operations.

Income from operations increased 9.6 percent year-over-year to $230.4 million, and the growth was 7.9 percent excluding positive impact of foreign currency exchange rates. The growth was primarily due to higher U.S. and international franchise royalties and fees and gross margin dollar growth within supply chain, and a gain on the sale of corporate aircraft.

The company's total revenue for the period rose 3.4 percent to $1.150 billion from $1.112 billion last year, primarily due to higher supply chain revenues and higher global franchise royalties and advertising revenues.

Food basket pricing to stores increased 2.6 percent. Higher order volumes also contributed to the increase in supply chain revenues.

Total global retail sales grew to $4.74 billion from $4.46 billion, with growth in both U.S. stores and International stores.

Global retail sales growth, excluding foreign currency impact, was 3.4 percent with 2.8 percent rise in U.S. stores and 4 percent growth in International stores.

U.S. same store sales growth was 0.9 percent compared to 0.5 percent drop a year ago.

U.S. Company-owned stores grew 1.5 percent and U.S. franchise stores edged up 0.8 percent compared to decline last year.

International same store sales excluding foreign currency impact declined 0.4 percent, compared to 3.7 percent rise a year ago.

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