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

(Unaudited; tabular amounts in millions, except percentages and store data)

The 2026 and 2025 first quarters referenced herein represent the twelve-week periods ended March 22, 2026 and March 23, 2025, respectively. In this section, we discuss the results of our operations for the first quarter of 2026 as compared to the first quarter of 2025.

Overview

Domino’s is the largest pizza company in the world, with more than 22,300 locations in over 90 markets around the world as of March 22, 2026, and operates two distinct service models within its stores, with a significant business in both delivery and carryout. We are a highly recognized global brand, and we focus on value while serving neighborhoods locally through our large worldwide network of franchise owners and U.S. Company-owned stores through both the delivery and carryout service models. We have been selling quality, affordable food to our customers since 1960. We became “Domino’s Pizza” in 1965 and opened our first franchised store in 1967. For more than 65 years, we have built Domino’s into one of the most widely-recognized consumer brands in the world. We believe our commitment to value, convenience, quality and new products continues to keep consumers engaged with the brand.

We are primarily a franchisor, with approximately 99% of Domino’s global stores owned and operated by our independent franchisees as of March 22, 2026. Franchising enables an individual to be a business owner and maintain control over all employment-related matters and pricing decisions, while also benefiting from the strength of the Domino’s global brand and operating system with limited capital investment by us.

Domino’s business model is straightforward: Domino’s stores handcraft and serve quality food at a competitive price, with easy ordering access and efficient service, enhanced by our technological innovations. Our hand-tossed dough is made fresh and distributed to stores around the world by us and our franchisees.

Domino’s generates revenues and earnings by charging royalties and fees to our franchisees. Royalties are ongoing percent-of-sales fees for use of the Domino’s® brand marks. We also generate revenues and earnings by selling food and, to a lesser extent, other products to franchisees through our supply chain operations primarily in the U.S. and Canada and by operating a number of Company-owned stores in the U.S. Franchisees profit by selling pizza and other complementary items to their local customers. In our international markets, we generally grant geographical rights to the Domino’s Pizza® brand to master franchisees. These master franchisees are charged with developing their geographical area, and they may profit by sub-franchising and selling food and, to a lesser extent, other products to those sub-franchisees, as well as by running pizza stores. We believe that everyone in the system can benefit from the franchise model, including the end consumer, who can purchase Domino’s menu items for themselves and their family conveniently and economically.

Domino’s business model can yield strong returns for our franchise owners and the Company. It can also yield significant cash flows to us, through consistent franchise royalty and supply chain revenue streams, all within an asset-light model. We have historically returned cash to shareholders through dividend payments and share repurchases. Domino’s financial results are driven largely by retail sales at our stores. Changes in retail sales are primarily driven by same store sales growth and net store growth. We actively monitor both of these metrics, as they directly impact our revenues and profits, and we strive to consistently increase both metrics. Retail sales drive royalty payments from franchisees, as well as Company-owned store and supply chain revenues.

At Domino’s, we believe we have a proven business model for success that has historically driven strong returns for our shareholders. Our Hungry for MORE strategy aims to generate MORE sales, MORE stores and MORE profits. The strategic imperatives of our Hungry for MORE strategy are as follows:

Most Delicious Food: We believe we have the best pizza in the industry, and our menu has even more mouthwatering options beyond pizza. We will continue to showcase the breadth of our menu, while highlighting the deliciousness of our food through our innovative marketing promotions.

Operational Excellence: We are relentless in our focus on convenience, consistency and efficiency for our customers.

Renowned Value: We are committed to continuing to offer competitive pricing and personalized value for our customers that is innovative and memorable.

Enhanced by Best-in-Class Franchisees: Our franchisees play a vital role in driving results and excitement across the more than 90 markets in which we operate.

First Quarter of 2026 Highlights

As discussed above, our Hungry for MORE strategy aims to generate MORE sales, MORE stores and MORE profits.

MORE Sales: Global retail sales, excluding foreign currency impact (which includes total retail sales at Company-owned and franchised stores worldwide), increased 3.4% as compared to the first quarter of 2025. U.S. retail sales increased 2.8% and international retail sales, excluding foreign currency impact, increased 4.0% as compared to the first quarter of 2025. Same store sales increased 0.9% in our U.S. stores and declined 0.4% in our international stores (excluding foreign currency impact).

MORE Stores: Global net store growth of 180, including 19 net store openings in the U.S. and 161 net store openings internationally.

MORE Profits: Income from operations increased 9.6%.

Excluding the positive impact of foreign currency, Domino’s experienced global retail sales growth during the first quarter of 2026, driven by same store sales growth in the U.S. and net store growth in both our U.S. and international businesses. These factors, as well as gross margin dollar improvement within supply chain and a pre-tax realized gain on the sale of our fully depreciated corporate aircraft, also contributed to an increase in income from operations. Overall, we believe our global retail sales growth, excluding foreign currency impact, marketing initiatives, operations and emphasis on technology have combined to strengthen our brand. These financial and statistical measures are described in additional detail below.

Statistical Measures

The tables below outline certain statistical measures we utilize to analyze our performance. This historical data is not necessarily indicative of results to be expected for any future period.

Global Retail Sales

Global retail sales is a commonly used statistical measure in the quick-service restaurant industry that is important to understanding performance. Global retail sales refers to total worldwide retail sales at Company-owned and franchised stores. We believe global retail sales information is useful in analyzing revenues because franchisees pay royalties and, in the U.S., advertising fees that are based on a percentage of franchise retail sales. We review comparable industry global retail sales information to assess business trends and to track the growth of the Domino’s Pizza brand, and we believe they are indicative of the financial health of our franchisee base. In addition, supply chain revenues are directly impacted by changes in franchise retail sales in the U.S. and Canada. As a result, sales by Domino’s franchisees have a direct effect on our profitability. Retail sales for franchised stores are reported to us by our franchisees and are not included in our revenues. The amounts below are presented in millions of U.S. dollars.

		First Quarter of 2026				First Quarter of 2025
Global retail sales:
U.S. stores		$	2,302.6			$	2,240.8
International stores			2,437.1				2,223.5
Total		$	4,739.7			$	4,464.3

Global Retail Sales Growth, Excluding Foreign Currency Impact

Global retail sales growth, excluding foreign currency impact, is a commonly used statistical measure in the quick-service restaurant industry that is important to understanding performance. Global retail sales growth, excluding foreign currency impact is calculated as the change of international local currency global retail sales against the comparable period of the prior year. Changes in global retail sales growth, excluding foreign currency impact are primarily driven by same store sales growth and net store growth.

		First Quarter of 2026		First Quarter of 2025
U.S. stores		+ 2.8%		+ 1.3%
International stores (excluding foreign currency impact)		+ 4.0%		+ 8.2%
Total (excluding foreign currency impact)		+ 3.4%		+ 4.7%

Same Store Sales Growth

Same store sales growth is a commonly used statistical measure in the quick-service restaurant industry that is important to understanding performance. Same store sales growth is calculated for a given period by including only sales from stores that also had sales in the comparable weeks of both periods. International same store sales growth is calculated similarly to U.S. same store sales growth. Changes in international same store sales are reported on a constant dollar basis, which reflects changes in international local currency sales. Same store sales growth for transferred stores is reflected in their current classification.

		First Quarter of 2026		First Quarter of 2025
U.S. Company-owned stores		+ 1.5%		(2.9)%
U.S. franchise stores		+ 0.8%		(0.4)%
U.S. stores		+ 0.9%		(0.5)%
International stores (excluding foreign currency impact)		(0.4)%		+ 3.7%

U.S. same store sales increased 0.9% in the first quarter of 2026, rolling over a decline in U.S. same store sales of 0.5% in the first quarter of 2025. The increase in U.S. same store sales was driven by both higher average ticket and higher customer transaction counts. International same store sales (excluding foreign currency impact) declined 0.4% in the first quarter of 2026, rolling over an increase in international same store sales (excluding foreign currency impact) of 3.7% in the first quarter of 2025.

Store Growth Activity

Net store growth is a commonly used statistical measure in the quick-service restaurant industry that is important to understanding performance. Net store growth is calculated by netting gross store openings with gross store closures during the period. Transfers between Company-owned stores and franchised stores are excluded from the calculation of net store growth.

		U.S. Company- owned Stores				U.S. Franchise Stores				Total U.S. Stores				International Stores				Total
Store count at December 28, 2025			262				6,924				7,186				14,956				22,142
Openings			1				20				21				212				233
Closings			(1	)			(1	)			(2	)			(51	)			(53	)
Store count at March 22, 2026			262				6,943				7,205				15,117				22,322
First quarter 2026 net store growth			—				19				19				161				180
Trailing four quarters net store growth			5				169				174				790				964

Income Statement Data

		First Quarter of 2026								First Quarter of 2025
Revenues:
U.S. Company-owned stores		$	82.1							$	91.6
U.S. franchise royalties and fees			158.0								151.0
Supply chain			699.0								669.9
International franchise royalties and fees			81.0								75.6
U.S. franchise advertising			130.5								124.0
Total revenues			1,150.6				100.0	%			1,112.1				100.0	%
Cost of sales:
U.S. Company-owned stores			72.0								76.9
Supply chain			614.0								592.0
Total cost of sales			686.1				59.6	%			668.9				60.2	%
Gross margin			464.5				40.4	%			443.1				39.8	%
General and administrative			111.4				9.7	%			109.1				9.8	%
U.S. franchise advertising			130.5				11.4	%			124.0				11.1	%
Gain on sale of assets			(7.8	)			(0.7	)%			—				—
Income from operations			230.4				20.0	%			210.1				18.9	%
Other (expense) income			(6.0	)			(0.5	)%			24.0				2.2	%
Interest expense, net			(43.7	)			(3.8	)%			(41.6	)			(3.8	)%
Income before provision for income taxes			180.6				15.7	%			192.5				17.3	%
Provision for income taxes			40.8				3.5	%			42.8				3.8	%
Net income		$	139.8				12.2	%		$	149.7				13.5	%

Revenues

		First Quarter of 2026								First Quarter of 2025
U.S. Company-owned stores		$	82.1				7.1	%		$	91.6				8.2	%
U.S. franchise royalties and fees			158.0				13.7	%			151.0				13.6	%
Supply chain			699.0				60.8	%			669.9				60.3	%
International franchise royalties and fees			81.0				7.0	%			75.6				6.8	%
U.S. franchise advertising			130.5				11.4	%			124.0				11.1	%
Total revenues		$	1,150.6				100.0	%		$	1,112.1				100.0	%

Revenues primarily consist of retail sales from our Company-owned stores, royalties and fees and advertising contributions from our U.S. franchised stores, royalties and fees from our international franchised stores and sales of food and, to a lesser extent, other products from our supply chain centers to substantially all of our U.S. franchised stores and certain international franchised stores. Company-owned store and franchised store revenues may vary from period to period due to changes in store count mix. Supply chain revenues may vary significantly from period to period as a result of fluctuations in commodity prices as well as the mix of products we sell.

Consolidated revenues increased $38.5 million, or 3.5%, in the first quarter of 2026 as compared to the first quarter of 2025, primarily due to higher supply chain revenues and higher global franchise royalties and advertising revenues. The increase in supply chain revenues was primarily attributable to an increase in our food basket pricing to stores and higher order volumes, but these increases were partially offset by a shift in the relative mix of products we sell. The increases in U.S. franchise royalties and advertising revenues were driven primarily by net store growth during the trailing four quarters and higher same store sales. International franchise royalties increased primarily due to the positive impact of foreign currency exchange rates on international franchise royalty revenues of $3.6 million, as well as net store growth during the trailing four quarters. These changes in revenues are described in more detail below.

U.S. Stores

		First Quarter of 2026								First Quarter of 2025
U.S. Company-owned stores		$	82.1				22.2	%		$	91.6				25.0	%
U.S. franchise royalties and fees			158.0				42.6	%			151.0				41.2	%
U.S. franchise advertising			130.5				35.2	%			124.0				33.8	%
Total U.S. stores revenues		$	370.6				100.0	%		$	366.6				100.0	%

U.S. Company-owned Stores

Revenues from U.S. Company-owned store operations decreased $9.5 million, or 10.4%, in the first quarter of 2026 primarily driven by the refranchising of the Maryland market in May 2025. This decrease was partially offset by higher same store sales.

U.S. Company-owned same store sales increased 1.5% in the first quarter of 2026 and declined 2.9% in the first quarter of 2025.

U.S. Franchise Royalties and Fees

Revenues from U.S. franchise royalties and fees increased $7.0 million, or 4.6%, in the first quarter of 2026 primarily due to an increase in the average number of U.S. franchised stores open during the period resulting from net store growth and higher same store sales.

U.S. franchise same store sales increased 0.8% in the first quarter of 2026 and declined 0.4% in the first quarter of 2025.

U.S. Franchise Advertising

Revenues from U.S. franchise advertising increased $6.6 million, or 5.3%, in the first quarter of 2026 primarily due to an increase in the average number of U.S. franchised stores open during the period resulting from net store growth, a decrease in advertising incentives and higher same store sales.

Supply Chain

Supply chain revenues increased $29.0 million, or 4.3%, in the first quarter of 2026 primarily due to an increase in our food basket pricing to stores and higher order volumes, but these increases were partially offset by a shift in the relative mix of products we sell. Our food basket pricing to stores increased 2.6% in the first quarter of 2026, which resulted in an estimated $16 million increase in supply chain revenues. The food basket pricing change, a statistical measure utilized by management, is calculated as the percentage change of the food basket (including both food and cardboard products) purchased by an average U.S. store (based on average weekly unit sales) from our U.S. supply chain centers against the comparable period of the prior year. We believe this measure is important to understanding Company performance because as our food basket prices fluctuate, our revenues, cost of sales and gross margin percentages in our supply chain segment also fluctuate.

International Franchise Royalties and Fee Revenues

Revenues from international franchise royalties and fees increased $5.4 million, or 7.2%, in the first quarter of 2026 primarily due to the positive impact of changes in foreign currency exchange rates of approximately $3.6 million, as well as an increase in the average number of international franchised stores open during the period resulting from net store growth. These increases were partially offset by a decline in international same store sales (excluding foreign currency impact) in the first quarter of 2026. The impact of changes in foreign currency exchange rates on international franchise royalty revenues, a statistical measure utilized by management, is calculated as the difference in international franchise royalty revenues resulting from translating current year local currency results to U.S. dollars at current year exchange rates as compared to prior year exchange rates. We believe this measure is important to understanding Company performance given the significant variability in international franchise royalty revenues that can be driven by changes in foreign currency exchange rates.

International franchise same store sales declined 0.4% in the first quarter of 2026 and increased 3.7% in the first quarter of 2025, each excluding the impact of foreign currency exchange rates.

Cost of Sales / Gross Margin

		First Quarter of 2026								First Quarter of 2025
Total revenues		$	1,150.6				100.0	%		$	1,112.1				100.0	%
Total cost of sales			686.1				59.6	%			668.9				60.2	%
Gross margin		$	464.5				40.4	%		$	443.1				39.8	%

Consolidated cost of sales consists of U.S. Company-owned store and supply chain costs incurred to generate related revenues. Components of consolidated cost of sales primarily include food and labor costs, as well as other costs including delivery, occupancy costs (including rent, telephone, utilities and depreciation) and insurance expense. Consolidated gross margin (which we define as revenues less cost of sales) increased $21.4 million, or 4.8%, in the first quarter of 2026, primarily due to higher global franchise royalties and advertising revenues (as discussed above), as well as gross margin dollar growth within supply chain, discussed below. Franchise revenues do not have a cost of sales component, so changes in these revenues have a disproportionate effect on gross margin. Additionally, as food basket prices fluctuate, revenues, cost of sales and gross margin percentages in our supply chain segment also fluctuate, and further, cost of sales, gross margins and gross margin percentages for our U.S. Company-owned stores also fluctuate.

As a percentage of revenues, consolidated gross margin increased 0.6 percentage points to 40.4% in the first quarter of 2026 from 39.8% in the first quarter of 2025. U.S. Company-owned store gross margin decreased 3.8 percentage points in the first quarter of 2026, and supply chain gross margin increased 0.6 percentage points in the first quarter of 2026. Changes in the significant components of gross margin are described in more detail below.

U.S. Company-Owned Store Gross Margin

		First Quarter of 2026								First Quarter of 2025
Revenues		$	82.1				100.0	%		$	91.6				100.0	%
Cost of sales			72.0				87.8	%			76.9				84.0	%
Store gross margin		$	10.1				12.2	%		$	14.7				16.0	%

U.S. Company-owned store gross margin (which does not include certain store-level costs such as royalties and advertising) decreased $4.6 million, or 31.6%, in the first quarter of 2026. As a percentage of store revenues, U.S. Company-owned store gross margin decreased 3.8 percentage points in the first quarter of 2026. These changes in gross margin as a percentage of revenues are discussed in additional detail below.

Food costs increased 0.7 percentage points to 30.4% in the first quarter of 2026, driven by the increase in the food basket pricing to stores.

Labor costs increased 1.3 percentage points to 33.2% in the first quarter of 2026, due to higher wage rates.

Higher insurance costs drove the remaining decrease in U.S. Company-owned store gross margin as a percentage of revenues in the first quarter of 2026.

Supply Chain Gross Margin

		First Quarter of 2026								First Quarter of 2025
Revenues		$	699.0				100.0	%		$	669.9				100.0	%
Cost of sales			614.0				87.8	%			592.0				88.4	%
Supply chain gross margin		$	85.0				12.2	%		$	77.9				11.6	%

Supply chain gross margin increased $7.0 million, or 9.0%, in the first quarter of 2026. As a percentage of supply chain revenues, supply chain gross margin increased 0.6 percentage points in the first quarter of 2026. These changes in gross margin as a percentage of revenues are discussed in additional detail below.

Food costs decreased 0.4 percentage points to 70.0% in the first quarter of 2026, driven primarily by procurement productivity, partially offset by the increase in the cost of our food basket.

Labor costs were 9.2% in both the first quarter of 2026 and 2025.

General and Administrative Expenses

General and administrative expenses increased $2.3 million, or 2.1%, in the first quarter of 2026, primarily due to higher professional fees and computer expenses. These increases were partially offset by approximately $5 million in severance expenses associated with an organizational realignment that took place in the first quarter of 2025 that did not reoccur in 2026.

U.S. Franchise Advertising Expenses

U.S. franchise advertising expenses increased $6.6 million, or 5.3%, in the first quarter of 2026, consistent with the increase in U.S. franchise advertising revenues, as discussed above. U.S. franchise advertising costs are accrued and expensed when the related U.S. franchise advertising revenues are recognized, as our consolidated not-for-profit advertising fund is obligated to expend such revenues on advertising and other activities that promote the Domino’s brand, and these revenues cannot be used for general corporate purposes.

Gain on Sale of Assets

During the first quarter of 2026, we recorded a $7.8 million pre-tax realized gain associated with the sale of our fully depreciated corporate aircraft.

Other (Expense) Income

Other expense was $6.0 million in the first quarter of 2026, while other income was $24.0 million in the first quarter of 2025, each representing the net unrealized losses and gains on our investment in DPC Dash. The recorded amount of our investment is based on the active exchange quoted price for the equity security. Additional information related to our investment in DPC Dash is included in Note 5 to our condensed consolidated financial statements.

Interest Expense, Net

Interest expense, net increased $2.1 million, or 5.0%, in the first quarter of 2026, driven primarily by lower interest income on our cash equivalents.

Our weighted average borrowing rate increased to 3.9% in the first quarter of 2026 from 3.8% in the first quarter of 2025.

Provision for Income Taxes

Provision for income taxes decreased $2.0 million, or 4.7%, in the first quarter of 2026 due to lower income before provision for income taxes. The effective tax rate increased to 22.6% during the first quarter of 2026 as compared to 22.3% in the first quarter of 2025.

Segment Adjusted Income from Operations

Beginning in the first quarter of 2026, we evaluate the performance of our reportable segments and allocate resources to them based on Segment Adjusted Income from Operations which represents income from operations for the reportable segments, excluding gains and losses from the sale of assets, refranchising gains and losses and certain corporate administrative costs that have not been allocated to a reportable segment. Our chief operating decision maker uses Segment Adjusted Income from Operations to determine future business objectives and targets and for long-range planning for the reportable segments, as well as to evaluate their operating performance. Segment Adjusted Income from Operations for each of our reportable segments is summarized in the table below. Prior year amounts have been recast to reflect this change in the measure of segment profit used by our chief operating decision maker.

		First Quarter of 2026				First Quarter of 2025
U.S. stores		$	132.4			$	128.9
Supply chain			65.5				63.6
International franchise			69.5				63.7

U.S. Stores

U.S. stores Segment Adjusted Income from Operations increased $3.5 million, or 2.7%, in the first quarter of 2026, primarily due to higher U.S. franchise royalties and fees revenues, but was partially offset by the $4.6 million decrease in U.S. Company-owned store gross margin discussed above.

U.S. franchise revenues do not have a cost of sales component, so changes in these revenues have a disproportionate effect on U.S. stores Segment Adjusted Income from Operations. U.S. franchise advertising costs are accrued and expensed when the related U.S. franchise advertising revenues are recognized and had no impact on U.S. stores Segment Adjusted Income from Operations.

Supply Chain

Supply chain Segment Adjusted Income from Operations increased $1.9 million, or 3.0%, in the first quarter of 2026, primarily due to the $7.0 million increase in supply chain gross margin discussed above.

International Franchise

International franchise Segment Adjusted Income from Operations increased $5.8 million, or 9.1%, in the first quarter of 2026, primarily due to higher international franchise royalties and fees revenues, as discussed above. International franchise revenues do not have a cost of sales component, so changes in these revenues have a disproportionate effect on international franchise Segment Adjusted Income from Operations.

Liquidity and Capital Resources

Historically, our receivable collection periods and inventory turn rates are faster than the normal payment terms on our current liabilities resulting in efficient deployment of working capital. We generally collect our receivables within three weeks from the date of the related sale and we generally experience multiple inventory turns per month. In addition, our sales are not typically seasonal, which further limits variations in our working capital requirements. As of March 22, 2026, we had working capital of $171.0 million, excluding restricted cash and cash equivalents of $183.6 million, advertising fund assets, restricted, of $115.8 million and advertising fund liabilities of $113.4 million. Working capital includes total unrestricted cash and cash equivalents of $232.9 million.

Our primary sources of liquidity are cash flows from operations and availability of borrowings under our variable funding notes. During the first quarter of 2026, we experienced an increase in both U.S. and international retail sales (excluding foreign currency impact). Additionally, both our U.S. and international businesses grew store counts during the first quarter of 2026. These factors contributed to our continued ability to generate positive operating cash flows. In addition to our cash flows from operations, we have a variable funding note facility. Our Series 2025-1 Variable Funding Senior Secured Notes, Class A-1 Notes (the “2025 Variable Funding Notes”), allows for advances of up to $320.0 million and issuance of certain other credit instruments, including letters of credit. The letters of credit primarily relate to our casualty insurance programs. As of March 22, 2026, we had no outstanding borrowings and $263.6 million of available borrowing capacity under our 2025 Variable Funding Notes, net of letters of credit issued of $56.4 million.

We expect to continue to use our unrestricted cash and cash equivalents, cash flows from operations, any excess cash from our refinancing and recapitalization transactions and available borrowings under our 2025 Variable Funding Notes to, among other things, fund working capital requirements, invest in our core business and other strategic opportunities, repay outstanding borrowings under our securitized debt, pay dividends and repurchase and retire shares of our common stock.

Our primary sources of liquidity could be adversely affected by the occurrence of any of the events described under “Risk Factors” in our 2025 Form 10-K. There can be no assurance that our business will generate sufficient cash flows from operations or that future borrowings will be available under our 2025 Variable Funding Notes or otherwise to enable us to service our indebtedness, or to make anticipated capital expenditures. Our future operating performance and our ability to service, extend or refinance our notes and to service, extend or refinance our 2025 Variable Funding Notes will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control.

Restricted Cash

As of March 22, 2026, we had $133.7 million of restricted cash and cash equivalents held for future principal and interest payments and other working capital requirements of our asset-backed securitization structure, $49.7 million of restricted cash equivalents held in a three-month interest reserve as required by the related debt agreements and $0.2 million of other restricted cash for a total of $183.6 million of restricted cash and cash equivalents. As of March 22, 2026, we also held $82.8 million of advertising fund restricted cash and cash equivalents which can only be used for activities that promote the Domino’s brand.

Long-Term Debt

As of March 22, 2026, we had approximately $4.88 billion of long-term debt. As of March 22, 2026, our fixed rate notes from the recapitalization and refinancing transactions we completed in 2025, 2021, 2019, 2018 and 2017 had original scheduled principal payments of $49.3 million in 2026, $1.34 billion in 2027, $836.4 million in 2028, $647.8 million in 2029, $495.0 million in 2030, $927.5 million in 2031 and $470.0 million in 2032. However, in accordance with our debt agreements, the payment of principal on the 2025 Five-Year Notes and the 2025 Seven-Year Notes may be suspended if either the Holdco Leverage Ratio or Senior Leverage Ratio is less than or equal to 5.5x total debt to either Consolidated Adjusted EBITDA or Securitized Net Cash Flow, each as defined in the indenture governing the securitized debt, and no catch-up provisions are applicable. In accordance with our debt agreements, the payment of principal on the 2021 7.5-Year Notes, 2021 Ten-Year Notes, 2019 Ten-Year Notes, 2018 9.25-Year Notes and 2017 Ten-Year Notes may be suspended if the Holdco Leverage Ratio is less than or equal to 5.0x total debt to Consolidated Adjusted EBITDA, each as defined in the indenture governing the securitized debt, and no catch-up provisions are applicable. As of the end of the first quarter of 2026 and the fourth quarter of 2025, we satisfied the non-amortization tests for each respective series of notes, and accordingly, the outstanding principal amounts of the notes have been classified as long-term debt in the condensed consolidated balance sheet as of March 22, 2026 and December 28, 2025.

The anticipated repayment date for the 2018 9.25-Year Notes and the 2017 Ten-Year Notes is July 2027. The Company expects to refinance the 2018 9.25-Year Notes and the 2017 Ten-Year Notes prior to the anticipated repayment date. If the Company does not refinance the 2018 9.25-Year Notes and the 2017 Ten-Year Notes prior to the anticipated repayment date, additional interest of at least 5% per annum will accrue and the Company’s cash flows other than a weekly management fee to cover certain operating expenses would be directed to the repayment of the securitized debt.

The notes are subject to certain financial and non-financial covenants, including a debt service coverage ratio calculation. The covenant requires a minimum coverage ratio of 1.75x total debt service to Securitized Net Cash Flow, each as defined in the indenture governing the securitized debt. In the event that certain covenants are not met, the notes may become due and payable on an accelerated schedule.

Share Repurchase Programs

Our share repurchase programs have historically been funded by excess operating cash flows, excess proceeds from our recapitalization transactions and borrowings under our variable funding notes.

During the first quarter of 2026, we repurchased and retired 188,304 shares of our common stock under our Board of Directors-approved share repurchase program for a total of approximately $75.1 million. As of March 22, 2026, we had a total remaining authorized amount for share repurchases of approximately $384.6 million. Subsequent to the end of the first quarter of 2026 and through April 21, 2026, we repurchased and retired an additional 257,545 shares of common stock for a total of approximately $94.4 million. Subsequent to the end of the first quarter of 2026, on April 21, 2026, our Board of Directors authorized an additional share repurchase program to repurchase up to $1.0 billion of our common stock, in addition to the $290.2 million that was previously remaining for a total authorization of $1.29 billion for future share repurchases.

Dividends

On February 18, 2026, our Board of Directors declared a $1.99 per share quarterly dividend on our outstanding common stock for shareholders of record as of March 13, 2026, which was paid on March 30, 2026. We had approximately $68.5 million accrued for common stock dividends at March 22, 2026. Subsequent to the end of the first quarter of 2026, on April 21, 2026, our Board of Directors declared a $1.99 per share quarterly dividend on our outstanding common stock for shareholders of record as of June 15, 2026, to be paid on June 30, 2026.

Sources and Uses of Cash

The following table illustrates the main components of our cash flows:

		First Quarter of 2026				First Quarter of 2025
Cash flows provided by (used in)
Net cash provided by operating activities		$	162.0			$	179.1
Net cash used in investing activities			(8.1	)			(16.0	)
Net cash used in financing activities			(88.4	)			(51.9	)
Effect of exchange rate changes on cash			(0.1	)			0.3
Change in cash and cash equivalents, restricted cash and cash equivalents		$	65.4			$	111.5

Operating Activities

Cash provided by operating activities decreased $17.1 million in the first quarter of 2026, primarily as a result of the negative impact of changes in operating assets and liabilities. The negative impact of changes in operating assets and liabilities of $33.5 million primarily related to the timing of payments on accounts payable and accrued liabilities in the first quarter of 2026 as compared to the first quarter of 2025. This increase was partially offset by net income, excluding non-cash adjustments. Net income decreased $9.8 million, however, this decrease was more than offset by the positive impact of non-cash adjustments of $26.8 million (primarily representing the changes in the pre-tax unrealized losses and gains associated with the remeasurement of our investment in DPC Dash and the pre-tax realized gain associated with the sale of our fully depreciated corporate aircraft), resulting in an overall increase to cash provided by operating activities in the first quarter of 2026 as compared to the first quarter of 2025 of $17.0 million.

Investing Activities

Cash used in investing activities was $8.1 million in the first quarter of 2026, which primarily consisted of $15.0 million of capital expenditures (driven primarily by investments in consumer and store technology, supply chain centers and corporate store operations). This use of cash was partially offset by the net proceeds of $7.8 million associated with the sale of our fully depreciated corporate aircraft.

Financing Activities

Cash used in financing activities was $88.4 million in the first quarter of 2026, which included the repurchase of approximately $75.1 million in common stock under our Board of Directors-approved share repurchase program, tax payments for the vesting of restricted stock units of $12.9 million, dividend payments of $1.5 million and repayments of principal amounts related to our finance leases and other financing obligations of $0.8 million. These uses of cash were partially offset by proceeds from the exercise of stock options of $1.9 million.

Critical Accounting Estimates

For a description of the Company’s critical accounting estimates, refer to “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the 2025 Form 10-K. The Company considers its most significant accounting estimates to be long-lived assets, casualty insurance reserves and income taxes. There have been no material changes to the Company’s critical accounting estimates since December 28, 2025.

Forward-Looking Statements

This filing contains various forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”) that are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. The following cautionary statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the “safe harbor” provisions of the Act. You can identify forward-looking statements by the use of words such as “anticipates,” “believes,” “could,” “should,” “estimates,” “expects,” “intends,” “may,” “will,” “plans,” “predicts,” “projects,” “seeks,” “approximately,” “potential,” “outlook” and similar terms and phrases that concern our strategy, plans or intentions, including references to assumptions. These forward-looking statements address various matters including information concerning future results of operations and business strategy, our anticipated profitability, estimates in same store sales growth, store growth and the growth of our U.S. and international business in general, our ability to service our indebtedness, our future cash flows, our operating performance, trends in our business and other descriptions of future events reflect the Company’s expectations based upon currently available information and data. While we believe these expectations and projections are based on reasonable assumptions, such forward-looking statements are inherently subject to risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from our expectations are more fully described in our filings with the Securities and Exchange Commission, including under the section headed “Risk Factors” in our 2025 Form 10-K for the fiscal year ended December 28, 2025. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors, including but not limited to: our substantial indebtedness and our ability to incur additional indebtedness or refinance or renegotiate key terms of that indebtedness in the future; the impact a downgrade in our credit rating may have on our business, financial condition and results of operations; our future financial performance and our ability to pay principal and interest on our indebtedness; the strength of our brand, including our ability to compete in the U.S. and internationally in our intensely competitive industry, including the food service and food delivery markets; our ability to successfully implement our growth strategy, including through our participation in the third-party order aggregation marketplace; labor shortages or changes in operating expenses resulting from increases in prices of food (particularly cheese), fuel and other commodity costs, labor, utilities, insurance, employee benefits and other operating costs or negative economic conditions; the effectiveness of our advertising, operations and promotional initiatives; shortages, interruptions or disruptions in the supply or delivery of fresh food products and store equipment; the additional risks our international operations subject us to, which may differ in each country in which we and our franchisees do business; the dependence of our earnings and business growth strategy on the success of our franchisees; our ability and that of our franchisees to successfully operate in the current and future credit environment; the impact of social media, the rise of artificial intelligence-generated content, or a boycott on our business, brand and reputation; the impact of new or improved technologies , including artificial intelligence, and alternative methods of delivery on consumer behavior; new product, digital ordering and concept developments by us, and other food-industry competitors; our ability to maintain good relationships with and attract new franchisees, and franchisees’ ability to successfully manage their operations without negatively impacting our royalty payments and fees or our brand’s reputation; our ability to successfully implement cost-saving strategies; changes in the level of consumer spending given general economic conditions, including interest rates, energy prices and consumer confidence or negative economic conditions in general; our ability and that of our franchisees to open new restaurants and keep existing restaurants in operation and maintain demand for new stores; the impact that widespread illness, health epidemics or general health concerns, severe weather conditions and natural disasters may have on our business and the economies of the countries where we operate; changes in foreign currency exchange rates; changes in income tax rates; our ability to retain or replace our executive officers and other key members of management and our ability to adequately staff our stores and supply chain centers with qualified personnel; our ability to find and/or retain suitable real estate for our stores and supply chain centers; changes in government legislation or regulation, including changes in laws and regulations regarding information privacy, payment methods, advertising and consumer protection and social media; adverse legal judgments or settlements; food-borne illness or contamination of products or food tampering or other events that may impact our reputation; data breaches, power loss, technological failures, user error or other cyber risks threatening us or our franchisees; the impact that environmental, social and governance matters may have on our business and reputation; the effect of war, terrorism, catastrophic events, geopolitical or reputational considerations or climate change; our ability to pay dividends and repurchase shares; changes in consumer tastes, spending and traffic patterns and demographic trends; changes in accounting policies; and adequacy of our insurance coverage. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this filing might not occur. All forward-looking statements speak only as of the date of this filing and should be evaluated with an understanding of their inherent uncertainty. Except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission, or other applicable law, we will not undertake, and specifically disclaim, any obligation to publicly update or revise any forward-looking statements to reflect events or circumstances arising after the date of this filing, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on the forward-looking statements included in this filing or that may be made elsewhere from time to time by, or on behalf of, us. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.