Domino's Pizza 10-Q 2025-06-15

Filed 2025-07-21. 2 sections, 138K characters. Original on sec.gov · Markdown · JSON

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 15, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-32242

Domino’s Pizza, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Delaware		38-2511577
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
30 Frank Lloyd Wright Drive Ann Arbor, Michigan		48105
(Address of Principal Executive Offices)		(Zip Code)

(734) 930-3030

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Exchange Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Domino’s Pizza, Inc. Common Stock, $0.01 par value	DPZ	The Nasdaq Stock Market LLC

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 14, 2025, Domino’s Pizza, Inc. had 33,948,921 shares of common stock, par value $0.01 per share, outstanding.

Domino’s Pizza, Inc.

TABLE OF CONTENTS


		Page No.
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Condensed Consolidated Balance Sheets (Unaudited) – As of June 15, 2025 and December 29, 2024	3

	Condensed Consolidated Statements of Income (Unaudited) – Fiscal quarters and two fiscal quarters ended June 15, 2025 and June 16, 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Fiscal quarters and two fiscal quarters ended June 15, 2025 and June 16, 2024	5

	Condensed Consolidated Statements of Cash Flows (Unaudited) – Two fiscal quarters ended June 15, 2025 and June 16, 2024	6

	Notes to Condensed Consolidated Financial Statements (Unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.	Controls and Procedures	29

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	30

Item 1A.	Risk Factors	30

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30

Item 3.	Defaults Upon Senior Securities	30

Item 4.	Mine Safety Disclosures	30

Item 5.	Other Information	31

Item 6.	Exhibits	32

SIGNATURES		33

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Domino’s Pizza, Inc. and Subsidiaries

Conden****sed Consolidated Balance Sheets

(Unaudited)


(In thousands)	June 15, 2025			December 29, 2024
Assets
Current assets:
Cash and cash equivalents	$	272,859		$	186,126
Restricted cash and cash equivalents		211,734			195,370
Accounts receivable, net		284,606			309,104
Inventories		69,705			70,919
Prepaid expenses and other		45,556			40,363
Advertising fund assets, restricted		123,098			103,396
Total current assets		1,007,558			905,278
Property, plant and equipment:
Land and buildings		104,593			104,793
Leasehold and other improvements		189,419			191,718
Equipment		404,888			390,542
Construction in progress		13,111			22,717
		712,011			709,770
Accumulated depreciation and amortization		(421,741	)		(408,591	)
Property, plant and equipment, net		290,270			301,179
Other assets:
Operating lease right-of-use assets		222,676			210,302
Goodwill		10,764			11,578
Capitalized software, net		158,166			155,025
Investment in DPC Dash		46,667			82,699
Deferred income tax assets, net		26,135			23,432
Other assets		49,057			47,520
Total other assets		513,465			530,556
Total assets	$	1,811,293		$	1,737,013
Liabilities and stockholders’ deficit
Current liabilities:
Current portion of long-term debt	$	1,149,989		$	1,149,679
Accounts payable		131,088			85,898
Operating lease liabilities		43,003			39,920
Insurance reserves		24,880			25,658
Dividends payable		61,246			2,246
Advertising fund liabilities		120,790			101,567
Other accrued liabilities		157,185			207,494
Total current liabilities		1,688,181			1,612,462
Long-term liabilities:
Long-term debt, less current portion		3,825,847			3,825,659
Operating lease liabilities		192,739			181,983
Insurance reserves		33,148			33,229
Other accrued liabilities		46,005			45,971
Total long-term liabilities		4,097,739			4,086,842
Stockholders’ deficit:
Common stock		339			343
Additional paid-in capital		843			1,272
Retained deficit		(3,971,182	)		(3,956,474	)
Accumulated other comprehensive loss		(4,627	)		(7,432	)
Total stockholders’ deficit		(3,974,627	)		(3,962,291	)
Total liabilities and stockholders’ deficit	$	1,811,293		$	1,737,013

The accompanying notes are an integral part of these condensed consolidated financial statements.

Domino’s Pizza, Inc. and Subsidiaries

Condense****d Consolidated Statements of Income

(Unaudited)


	Fiscal Quarter Ended						Two Fiscal Quarters Ended
	June 15,			June 16,			June 15,			June 16,
(In thousands, except per share data)	2025			2024			2025			2024
Revenues:
U.S. Company-owned stores	$	92,456		$	92,264		$	184,054		$	184,913
U.S. franchise royalties and fees		156,261			147,576			307,261			298,094
Supply chain		687,062			659,244			1,356,986			1,318,458
International franchise royalties and fees		77,164			73,696			152,723			145,662
U.S. franchise advertising		132,201			124,956			256,176			235,256
Total revenues		1,145,144			1,097,736			2,257,200			2,182,383
Cost of sales:
U.S. Company-owned stores		78,073			76,059			154,984			152,517
Supply chain		606,101			584,646			1,198,099			1,170,965
Total cost of sales		684,174			660,705			1,353,083			1,323,482
Gross margin		460,970			437,031			904,117			858,901
General and administrative		107,608			115,947			216,685			216,971
U.S. franchise advertising		132,201			124,956			256,176			235,256
Refranchising (gain) loss		(3,883	)		25			(3,883	)		158
Income from operations		225,044			196,103			435,139			406,516
Other (expense) income		(15,974	)		11,398			8,053			(7,301	)
Interest income		3,829			4,219			7,774			7,958
Interest expense		(44,648	)		(44,721	)		(90,233	)		(90,567	)
Income before provision for income taxes		168,251			166,999			360,733			316,606
Provision for income taxes		37,160			25,021			79,991			48,804
Net income	$	131,091		$	141,978		$	280,742		$	267,802
Earnings per share:
Common stock - basic	$	3.84		$	4.07		$	8.20		$	7.68
Common stock - diluted	$	3.81		$	4.03		$	8.14		$	7.61

The accompanying notes are an integral part of these condensed consolidated financial statements.

Domino’s Pizza, Inc. and Subsidiaries

Condensed Consolida****ted Statements of Comprehensive Income

(Unaudited)


	Fiscal Quarter Ended					Two Fiscal Quarters Ended
	June 15,		June 16,			June 15,		June 16,
(In thousands)	2025		2024			2025		2024
Net income	$	131,091	$	141,978		$	280,742	$	267,802
Currency translation adjustment		2,462		(483	)		2,805		(1,608	)
Comprehensive income	$	133,553	$	141,495		$	283,547	$	266,194

The accompanying notes are an integral part of these condensed consolidated financial statements.

Domino’s Pizza, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Two Fiscal Quarters Ended
	June 15,	June 16,
(In tho

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