Domino's Pizza, Inc. (DPZ) SEC Filings & Earnings Calls

Deceleration in same-store sales growth compared to prior year; U.S. same-store sales growth fell from 5.2% to 0.3% and international from 1.7% to 0.2%.

“U.S. same store sales growth of 0.3% vs 5.2% in prior year; International same store sales growth (ex-FX) of 0.2% vs 1.7%.”

Free cash flow declined 7.2% year-to-date due to timing of advertising payments and working capital changes.

“Free cash flow $459.8 million vs $495.6 million in prior year period, a decrease of 7.2%.”

Debt refinancing risk

“We expect to refinance the 2018 9.25-Year Notes and the 2017 Ten-Year Notes prior to the anticipated repayment date, and we expect, based on current benchmark rates, to refinance those notes at higher interest rates.” · word for word

Commodity cost pressure

“Severe increases in commodity prices or food costs, including as a result of inflation, could affect the global and U.S. economies and could also adversely impact our business.” · word for word

Labor cost pressure

“Labor costs increased 0.6 percentage points to 31.5% in the third quarter of 2026 and increased 1.0 percentage point to 31.9% in the three fiscal quarters of 2026, each driven by higher wage rates.” · word for word

Labor cost inflation

“Labor costs increased 1.0 percentage point to 30.9% in the second quarter of 2026 ... driven by higher wage rates.” · word for word

Commodity price volatility

“Severe increases in commodity prices or food costs, including as a result of inflation, could affect the global and U.S. economies and could also adversely impact our business.” · word for word

Interest rate risk on variable debt

“A rising interest rate environment could result in higher interest expense due on borrowings under our 2025 Variable Funding Notes.” · word for word

International same store sales declined 0.1% ex-FX, indicating potential consumer demand softness in international markets

“International same store sales decline (excluding foreign currency impact) of 0.1% vs +2.4% prior year.”

U.S. same store sales growth decelerated sharply to 0.1% from 3.4% a year ago, reflecting broader QSR industry pressure

“U.S. same store sales growth of 0.1% vs 3.4% prior year; CEO noted 'broader U.S. QSR industry continued to face pressure on consumer demand'.”

Free cash flow declined 5.5% YTD due to higher capex and lower operating cash flow

“Free cash flow $313.6 million vs $331.7 million prior year YTD, -5.5%.”

CTO departure may impact technology strategy; transition risk.

“Kelly Garcia resigning as CTO; search for successor initiated.”

U.S. Company-owned store margin pressure

“U.S. Company-owned store gross margin decreased 3.8 percentage points in the first quarter of 2026.” · word for word

International same store sales decline

“International same store sales (excluding foreign currency impact) declined 0.4% in the first quarter of 2026.” · word for word

High leverage and debt refinancing risk

“As of March 22, 2026, we had approximately $4.88 billion of long-term debt.” · word for word

International same store sales decline of 0.4% indicates potential macro or competitive headwinds outside the U.S.

“International same store sales decline (excluding foreign currency impact) of 0.4%” · word for word

Net income decreased 6.6% due to unrealized losses on investment in DPC Dash.

“Net income decreased $9.8 million, or 6.6%, primarily due to 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” · word for word

Challenging Macroeconomic Environment

“Amid a continued challenging global operating environment, the Company remained focused on its stakeholders” · word for word

Foreign Currency Exposure

“Income from operations up 8.5% in fiscal 2025 (excluding the $0.6 million negative impact of foreign currency exchange rates on international franchise royalty revenues, income from operations increased 8.6% for fiscal 2025).” · word for word

Franchisee Profitability Pressure

“Franchisees faced the direct impact of declining same-store sales and rising operational costs.” · word for word

U.S. Company-owned store gross margin decline

“U.S. Company-owned store gross margin decreased 5.4 percentage points in the fourth quarter of 2025 as compared to the fourth quarter of 2024, primarily due to higher insurance costs, higher labor rates and the increase in the Company’s food basket pricing to stores.” · word for word

GLP-1 demand shift risk

“Consumer preferences and demand for certain foods including pizza could also shift as a result of the increased use of prescription weight-loss therapies, including GLP-1 agonists and other related drugs.” · word for word

Franchisee concentration risk

“As of December 28, 2025, our largest international master franchisee operated 3,524 stores in 12 international markets, which accounted for approximately 24% of our international store count.” · word for word

Input cost inflation risk

“Cheese, in particular, is a significant cost to us, representing approximately 25% of the food basket purchased by our Company-owned stores.” · word for word

Labor cost pressure risk

“Several jurisdictions in which we and our franchisees operate, including California, have recently approved minimum wage increases.” · word for word

Cybersecurity risk

“The occurrence of cyber incidents, or a deficiency in cybersecurity, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of confidential information, or damage to our employee and business relationships” · word for word

Minimal risk; routine board retirement.

“Mr. Goldman will continue to serve on the Board through the remainder of his current term.” · word for word