Domino's Pizza 10-Q 2026-03-22

Filed 2026-04-27. 2 sections, 111K 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 March 22, 2026

☐ 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 April 20, 2026, Domino’s Pizza, Inc. had 33,261,870 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 March 22, 2026 and December 28, 2025	3

	Condensed Consolidated Statements of Income (Unaudited) – Fiscal quarters ended March 22, 2026 and March 23, 2025	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Fiscal quarters ended March 22, 2026 and March 23, 2025	5

	Condensed Consolidated Statements of Cash Flows (Unaudited) – Fiscal quarters ended March 22, 2026 and March 23, 2025	6

	Notes to Condensed Consolidated Financial Statements (Unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

Item 4.	Controls and Procedures	27

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	29

SIGNATURES		30

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Domino’s Pizza, Inc. and Subsidiaries

Conden****sed Consolidated Balance Sheets

(Unaudited)


(In thousands)	March 22, 2026			December 28, 2025
Assets
Current assets:
Cash and cash equivalents	$	232,922		$	125,675
Restricted cash and cash equivalents		183,628			216,110
Accounts receivable, net		306,098			315,958
Inventories		69,154			79,189
Prepaid expenses and other		41,377			39,767
Advertising fund assets, restricted		115,814			117,502
Total current assets		948,993			894,201
Property, plant and equipment:
Land and buildings		171,913			105,559
Leasehold and other improvements		202,801			193,673
Equipment		397,671			413,303
Construction in progress		28,848			46,184
		801,233			758,719
Accumulated depreciation and amortization		(414,503	)		(434,697	)
Property, plant and equipment, net		386,730			324,022
Other assets:
Operating lease right-of-use assets		238,908			219,485
Goodwill		10,689			10,726
Capitalized software, net		158,768			159,256
Investment in DPC Dash		30,080			36,070
Deferred income tax assets, net		18,634			22,101
Other assets		51,686			50,598
Total other assets		508,765			498,236
Total assets	$	1,844,488		$	1,716,459
Liabilities and stockholders’ deficit
Current liabilities:
Current portion of long-term debt	$	7,411		$	6,131
Accounts payable		124,376			135,029
Operating lease liabilities		49,490			47,553
Insurance reserves		26,304			26,169
Dividends payable		68,533			2,714
Advertising fund liabilities		113,449			115,412
Other accrued liabilities		202,437			208,613
Total current liabilities		592,000			541,621
Long-term liabilities:
Long-term debt, less current portion		4,876,122			4,810,683
Operating lease liabilities		202,750			183,917
Insurance reserves		33,614			32,959
Other accrued liabilities		46,775			48,421
Total long-term liabilities		5,159,261			5,075,980
Stockholders’ deficit:
Common stock		335			336
Additional paid-in capital		161			1,910
Retained deficit		(3,902,172	)		(3,898,622	)
Accumulated other comprehensive loss		(5,097	)		(4,766	)
Total stockholders’ deficit		(3,906,773	)		(3,901,142	)
Total liabilities and stockholders’ deficit	$	1,844,488		$	1,716,459

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
	March 22,			March 23,
(In thousands, except per share data)	2026			2025
Revenues:
U.S. Company-owned stores	$	82,098		$	91,598
U.S. franchise royalties and fees		158,014			151,000
Supply chain		698,973			669,924
International franchise royalties and fees		80,980			75,559
U.S. franchise advertising		130,529			123,975
Total revenues		1,150,594			1,112,056
Cost of sales:
U.S. Company-owned stores		72,046			76,911
Supply chain		614,036			591,998
Total cost of sales		686,082			668,909
Gross margin		464,512			443,147
General and administrative		111,406			109,077
U.S. franchise advertising		130,529			123,975
Gain on sale of assets		(7,780	)		—
Income from operations		230,357			210,095
Other (expense) income		(5,990	)		24,027
Interest income		2,502			3,945
Interest expense		(46,227	)		(45,585	)
Income before provision for income taxes		180,642			192,482
Provision for income taxes		40,831			42,831
Net income	$	139,811		$	149,651
Earnings per share:
Common stock - basic	$	4.16		$	4.37
Common stock - diluted	$	4.13		$	4.33

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
	March 22,			March 23,
(In thousands)	2026			2025
Net income	$	139,811		$	149,651
Currency translation adjustment		(331	)		343
Comprehensive income	$	139,480		$	149,994

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)


	Fiscal Quarter Ended
	March 22,			March 23,
(In thousands)	2026			2025
Cash flows from operating activities:
Net income	$	139,811		$	149,651
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,434			20,362
Gain on sale of assets		(7,780	)		—
Loss on disposal of assets		357			266
Amortization of debt issuance costs		1,485			1,210
Provision (benefit) for deferred income taxes		3,319			(2,290	)
Non-cash equity-based compensation expense		8,789			10,381
Excess tax benefits from equity-based compensation		(463	)		(1,569	)
Provision (benefit) for losses on accounts and notes receivable		44			(57	)
Unrealized loss (gain) on investments		5,990			(24,027	)
Changes in operating assets and liabilities		(370	)		34,244
Changes in advertising fund assets and liabilities, restricted		(9,661	)		(9,095	)
Net cash provided by operating activities		161,955			179,076
Cash flows from investing activities:
Capital expenditures		(15,043	)		(14,745	)
Proceeds from sale of assets		7,780			—
Other		(804

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