DOMINOS PIZZA INC (DPZ)

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AI: Fair-priced

Price checkThe shares look reasonably priced, but their debt leaves little room for disappointment.

At the August 14 close of $346.27, Domino’s trades at 19.7 times fiscal 2025 earnings of $17.57 per share. Using 33.57 million recent weighted-average diluted shares gives an equity value near $11.6 billion. Trailing free cash flow—cash left after running and investing in the business—was about $653 million, a 5.6% yield on that value. Those levels are not a bargain given flat restaurant sales, but they support a Fair-priced verdict if modest earnings growth continues.

Big pictureProfits and cash have grown steadily, although customer demand has recently slowed.

From fiscal 2020 through 2025, revenue increased 20% to $4.94 billion, operating profit rose 31% to $954 million, and earnings per share climbed 42% to $17.57. Fiscal 2025 free cash flow reached about $672 million. However, first-half 2026 free cash flow fell 5.5% to $314 million. Second-quarter revenue rose 4.3%, but established U.S. stores grew sales only 0.1%. This shows durable cash generation, while also showing that recent growth relies more on new stores, supply-chain activity, and buybacks than stronger customer spending.

Business strengthA mostly franchised network supports margins, while heavy borrowing weakens downside protection.

Franchisees operated 99% of Domino’s 22,531 stores at June 14, supporting recurring royalties and supply-chain orders without requiring Domino’s to fund most restaurants. Yet the balance sheet held $4.88 billion of debt against only $165 million of cash, and management’s leverage ratio—debt divided by adjusted annual operating cash earnings—was 4.3 times. Buybacks reduced year-end shares 13.5% from 2020 to 2025 despite stock-based pay, limiting dilution. First-half 2026 repurchases totaled $231 million, but debt makes such shareholder payouts less defensive.

What could change the storyFaster store sales would create upside, while weak traffic or refinancing costs threaten returns.

The strongest bull case is continued network expansion: Domino’s added 995 stores over the latest four quarters, while its new personal pizza could broaden meal occasions. The bear case is that second-quarter sales at established U.S. stores rose just 0.1% and international sales slipped 0.1%, leaving growth dependent on openings and promotions. As an inference, today’s price needs roughly mid-single-digit per-share growth to look rewarding. Sustained store-sales growth above 2%, with leverage below four times, would strengthen the case; flat sales and continued leverage above four times would weaken it.

$346.27 price considered

AI: News

Mixed second quarterRevenue and earnings grew, but nearly flat store sales exposed cautious customer spending.

On July 20, Domino’s reported second-quarter revenue of $1.19 billion, up 4.3%, and earnings of $4.07 per share, up 6.8%. However, sales at established U.S. stores grew only 0.1%, versus 3.4% a year earlier, while international sales slipped 0.1%. Reuters reported that shares were about 2% higher that afternoon after earlier premarket gains near 7%. The gain coincided with the release, but does not prove the results alone caused it.

Insider named chief executiveDomino’s chose an experienced insider as chief executive while keeping the outgoing leader involved.

On June 22, Domino’s named Joe Jordan chief executive effective October 1. Jordan has spent nearly 15 years at the company and currently oversees U.S. operations, marketing, and technology. Russell Weiner will remain involved as executive chairman designate, providing continuity during slowing store-sales growth. A Yahoo Finance report said the shares finished the announcement session down about 2%; that timing may reflect leadership uncertainty, but other market factors could also have contributed.

Personal pizza launchA new personal pizza targets solo meals and could lift order frequency.

On August 11, Domino’s announced the Domino, a Detroit-style personal pizza launching nationwide August 31 and offered in its two-or-more-items deal for $6.99 each. The product targets lunches, snacks, and groups wanting different toppings, potentially increasing orders, royalties, and supply-chain volume. Shares closed 2.7% higher on announcement day, rising from $347.85 to $357.34. Timing alone does not establish that the product news caused the move, and customer demand remains unproven.

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$4.94B	$4.71B	$4.48B	$4.54B	$4.36B	$4.12B	$3.62B	$3.43B	$2.79B	$2.47B	$2.22B	$1.99B	$1.80B	$1.68B	$1.65B	$1.57B	$1.40B
Gross profit	$1.97B	$1.85B	$1.73B	$1.65B	$1.69B	$1.59B	$1.40B	$1.30B	$866.0M	$767.7M	$683.1M	$594.8M	$549.0M	$501.3M	$470.5M	$438.6M	$387.0M
Operating income	$954.0M	$879.0M	$819.5M	$767.9M	$780.4M	$725.6M	$629.4M	$571.7M	$521.2M	$454.0M	$405.4M	$345.4M	$313.8M	$282.3M	$259.1M	$227.7M	$189.5M
EBITDAderived	$1.04B	$966.7M	$900.2M	$848.2M	$853.3M	$790.7M	$689.3M	$625.4M	$565.6M	$492.2M	$437.9M	$381.1M	$339.6M	$305.5M	$283.2M	$251.8M	$213.6M
Net income	$601.7M	$584.2M	$519.1M	$452.3M	$510.5M	$491.3M	$400.7M	$362.0M	$277.9M	$214.7M	$192.8M	$162.6M	$143.0M	$112.4M	$105.4M	$87.9M	$79.7M
Basic EPSper diluted share	$17.69	$16.83	$14.80	$12.66	$13.72	$12.61	$9.83	$8.65	$6.05	$4.41	$3.58	$2.96	$2.58	$1.99	$1.79	$1.50	$1.39
Diluted EPSper diluted share	$17.57	$16.69	$14.66	$12.53	$13.54	$12.39	$9.56	$8.35	$5.83	$4.30	$3.47	$2.86	$2.48	$1.91	$1.71	$1.45	$1.38

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)45$20.36M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 11, 2026Form 4 · 10b5-1	GARCIA KELLY EEVP, Chief Tech & Data Ofcr	SellCommon Stock, $0.01 par value	487	$311.74	$151.8K	9.4K
May 21, 2026Form 4 · 10b5-1	GARCIA KELLY EEVP, Chief Tech & Data Ofcr	SellCommon Stock, $0.01 par value	488	$313.16	$152.8K	9.4K
Apr 30, 2026Form 4 · 10b5-1	GARCIA KELLY EEVP, Chief Tech & Data Ofcr	SellCommon Stock, $0.01 par value	488	$332.31	$162.2K	9.4K
Mar 13, 2026Form 4 · 10b5-1	PARRISH JESSICA LOther	SellCommon Stock, $0.01 par value	47	$396.50	$18.6K	3.2K
Mar 13, 2026Form 4 · 10b5-1	HEADEN CYNTHIA AEVP, Chief Supply Chain Offr	SellCommon Stock, $0.01 par value	738	$396.50	$292.6K	6.2K

Review ownership filings at SEC.gov ↗

DOMINOS PIZZA INC (DPZ)

Financial charts

Financial statements

Insider buys & sells