10-Q · July 20, 2026
Domino's delivered Q2 revenue growth of 4.3% to $1.1944 billion, driven by supply-chain pricing and volumes, franchise revenue growth, and 209 net store additions, but diluted EPS of $4.07 declined from $4.13 in Q1 and…
Earnings analysis · 10-Q
DPZ earnings analysis
Filed October 13, 2026 · Our reading of the company's report
The latest report
Domino’s delivered a strong third quarter, with revenue of $1,185.6 million and diluted EPS of $4.60, above consensus EPS of $4.38 and prior-year EPS of $4.08. Operating margin expanded to 20.4% from 19.5% a year…
Read full summary
Domino’s delivered a strong third quarter, with revenue of $1,185.6 million and diluted EPS of $4.60, above consensus EPS of $4.38 and prior-year EPS of $4.08. Operating margin expanded to 20.4% from 19.5% a year earlier, although revenue was slightly below the approximately $1.19 billion reported in 2026Q2. The principal financial risk is refinancing approximately $1.32 billion of debt due in July 2027 at potentially higher rates; no material changes to previously disclosed risk factors or numeric forward guidance were reported.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.6
- Operating margin
- 20.4%
- Segment
- International franchise: 7.1% of third-quarter 2026 revenue, versus 6.8% in the third quarter of 2025; a hypothetical 10% adverse currency move would reduce international franchise royalty revenue by approximately $24.2 million in the first three quarters of 2026.
What stood out
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Revenue increased year over year
Third-quarter revenue was $1,185.6 million, up from approximately $1.15 billion in the prior-year quarter, but slightly below approximately $1.19 billion in 2026Q2.
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EPS beat consensus and prior periods
Diluted EPS was $4.60, versus $4.08 in the prior-year quarter and $4.07 in 2026Q2; EPS also exceeded the $4.38 consensus estimate.
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Operating leverage expanded
Operating margin expanded to 20.4%, compared with 19.5% in the prior-year quarter and 19.4% in 2026Q2. Operating income increased 8.3% year over year.
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International franchise mix grew
International franchise revenue represented approximately 7.1% of total revenue in the quarter, up from 6.8% in the prior-year quarter, indicating modest mix growth in the international franchise business.
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Share repurchases continued
The company repurchased 216,282 shares during the quarter at an average price of $340.31, and $1.15 billion remained available under the repurchase authorization as of September 6, 2026.
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Controls remained effective
Management concluded that disclosure controls were effective as of September 6, 2026, and reported no changes in internal control that materially affected or were reasonably likely to materially affect financial reporting.
What to watch
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Large near-term refinancing exposure
Approximately $1.32 billion of debt was classified as current as of September 6, 2026, with anticipated repayment in July 2027. Management expects to refinance these notes at higher interest rates, which could increase interest expense and constrain cash flow.
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Foreign exchange sensitivity
A hypothetical 10% adverse foreign-currency movement would have reduced international franchise royalty revenue by approximately $24.2 million during the first three fiscal quarters of 2026.
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Commodity and currency volatility
The company stated that severe increases in commodity prices or food costs could adversely affect results; approximately 7.1% of third-quarter revenue came from the international franchise segment, where currency volatility also affects reported revenue and cash flows.
Management's outlook
No numeric revenue or EPS guidance was provided. Management stated it expects to refinance approximately $1.32 billion of debt before its anticipated July 2027 repayment date and expects higher interest rates based on current benchmark rates.
Earlier filings 2
10-Q · April 27, 2026
Domino’s reported first-quarter 2026 revenue of $1,150.6 million, up $38.5 million or 3.5% year-over-year, driven by higher supply chain sales and franchise royalties/advertising. Consolidated gross margin expanded to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.