Domino's Pizza 10-Q 2025-09-07

Filed 2025-10-14. 2 sections, 148K 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 September 7, 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 October 7, 2025, Domino’s Pizza, Inc. had 33,786,218 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 September 7, 2025 and December 29, 2024	3

	Condensed Consolidated Statements of Income (Unaudited) – Fiscal quarters and three fiscal quarters ended September 7, 2025 and September 8, 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Fiscal quarters and three fiscal quarters ended September 7, 2025 and September 8, 2024	5

	Condensed Consolidated Statements of Cash Flows (Unaudited) – Three fiscal quarters ended September 7, 2025 and September 8, 2024	6

	Notes to Condensed Consolidated Financial Statements (Unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	31

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	32

Item 1A.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 3.	Defaults Upon Senior Securities	32

Item 4.	Mine Safety Disclosures	32

Item 5.	Other Information	33

Item 6.	Exhibits	34

SIGNATURES		35

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Domino’s Pizza, Inc. and Subsidiaries

Conden****sed Consolidated Balance Sheets

(Unaudited)


(In thousands)	September 7, 2025			December 29, 2024
Assets
Current assets:
Cash and cash equivalents	$	139,728		$	186,126
Restricted cash and cash equivalents		202,501			195,370
Accounts receivable, net		277,175			309,104
Inventories		71,155			70,919
Prepaid expenses and other		41,349			40,363
Advertising fund assets, restricted		135,826			103,396
Total current assets		867,734			905,278
Property, plant and equipment:
Land and buildings		104,657			104,793
Leasehold and other improvements		191,543			191,718
Equipment		411,128			390,542
Construction in progress		15,760			22,717
		723,088			709,770
Accumulated depreciation and amortization		(432,435	)		(408,591	)
Property, plant and equipment, net		290,653			301,179
Other assets:
Operating lease right-of-use assets		223,540			210,302
Goodwill		10,764			11,578
Capitalized software, net		159,238			155,025
Investment in DPC Dash		43,650			82,699
Deferred income tax assets, net		14,178			23,432
Other assets		50,520			47,520
Total other assets		501,890			530,556
Total assets	$	1,660,277		$	1,737,013
Liabilities and stockholders’ deficit
Current liabilities:
Current portion of long-term debt	$	5,521		$	1,149,679
Accounts payable		113,071			85,898
Operating lease liabilities		45,163			39,920
Insurance reserves		24,824			25,658
Dividends payable		61,183			2,246
Advertising fund liabilities		132,705			101,567
Other accrued liabilities		156,686			207,494
Total current liabilities		539,153			1,612,462
Long-term liabilities:
Long-term debt, less current portion		4,810,274			3,825,659
Operating lease liabilities		190,757			181,983
Insurance reserves		34,757			33,229
Other accrued liabilities		47,295			45,971
Total long-term liabilities		5,083,083			4,086,842
Stockholders’ deficit:
Common stock		338			343
Additional paid-in capital		619			1,272
Retained deficit		(3,957,671	)		(3,956,474	)
Accumulated other comprehensive loss		(5,245	)		(7,432	)
Total stockholders’ deficit		(3,961,959	)		(3,962,291	)
Total liabilities and stockholders’ deficit	$	1,660,277		$	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						Three Fiscal Quarters Ended
	September 7,			September 8,			September 7,			September 8,
(In thousands, except per share data)	2025			2024			2025			2024
Revenues:
U.S. Company-owned stores	$	82,749		$	89,173		$	266,803		$	274,086
U.S. franchise royalties and fees		157,155			144,074			464,416			442,168
Supply chain		696,959			651,314			2,053,945			1,969,772
International franchise royalties and fees		78,549			74,633			231,272			220,295
U.S. franchise advertising		131,642			120,925			387,818			356,181
Total revenues		1,147,054			1,080,119			3,404,254			3,262,502
Cost of sales:
U.S. Company-owned stores		69,258			74,205			224,242			226,722
Supply chain		617,894			582,167			1,815,993			1,753,132
Total cost of sales		687,152			656,372			2,040,235			1,979,854
Gross margin		459,902			423,747			1,364,019			1,282,648
General and administrative		105,092			103,991			321,777			320,962
U.S. franchise advertising		131,642			120,925			387,818			356,181
Refranchising (gain) loss		—			—			(3,883	)		158
Income from operations		223,168			198,831			658,307			605,347
Other (expense) income		(3,017	)		26,172			5,036			18,871
Interest income		4,060			4,339			11,834			12,297
Interest expense		(45,012	)		(44,726	)		(135,245	)		(135,293	)
Income before provision for income taxes		179,199			184,616			539,932			501,222
Provision for income taxes		39,880			37,692			119,871			86,496
Net income	$	139,319		$	146,924		$	420,061		$	414,726
Earnings per share:
Common stock - basic	$	4.11		$	4.22		$	12.31		$	11.91
Common stock - diluted	$	4.08		$	4.19		$	12.22		$	11.80

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					Three Fiscal Quarters Ended
	September 7,			September 8,		September 7,		September 8,
(In thousands)	2025			2024		2025		2024
Net income	$	139,319		$	146,924	$	420,061	$	414,726
Currency translation adjustment		(618	)		598		2,187		(1,010	)
Comprehensive income	$	138,701		$	147,522	$	422,248	$	413,716

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)


		Three Fiscal Quarters Ended
		September 7,

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