Domino’s Pizza (DPZ) investor relations material

Executive summary

• Global retail sales grew 3.4% year-over-year, with U.S. same-store sales up 0.9% and international same-store sales down 0.4% (excluding currency impacts), driven by higher average ticket and transaction counts in the U.S.

• Net store growth totaled 180 in Q1 2026, including 19 in the U.S. and 161 internationally.

• Income from operations increased 9.6% year-over-year; excluding a $3.6 million positive foreign currency impact, the increase was 7.9%.

• Net income declined 6.6% year-over-year, primarily due to a $30 million unfavorable change in unrealized gains/losses on an investment.

• The company remains committed to its long-term strategy, focusing on operational excellence, digital innovation, and product pipeline enhancements, including a fully launched new app and AI-driven Pizza Tracker.

Financial highlights

• Total revenues increased 3.5% to $1.15 billion, driven by higher supply chain revenues and franchise royalties.

• Diluted EPS was $4.13, down from $4.33 in the prior year quarter.

• Gross margin improved to 40.4% from 39.8% year-over-year; supply chain gross margin rose to 12.2%.

• Free cash flow was $147.0 million, down from $164.4 million year-over-year.

• Operating cash flow was $162.0 million, down from $179.1 million year-over-year.

Outlook and guidance

• U.S. and international same-store sales growth for 2026 now expected to be positive low single digits, reflecting macro and geopolitical uncertainty.

• Global retail sales growth projected at mid-single digits for the year.

• Operating income growth expected in the mid- to high-single digits, excluding currency, refranchising gains, and aircraft sale.

• Net store growth guidance: 175+ in the U.S. and ~800 internationally.

• Management expects continued use of cash for working capital, investments, dividends, and share repurchases.