Domino's Pizza reported second-quarter revenue that narrowly exceeded Wall Street expectations on Monday, as strong growth in its supply chain business helped offset weaker restaurant demand amid cautious consumer spending.
Shares of the pizza chain, which had fallen about 23% so far this year, closed 2.1% higher following the results.
Quarterly revenue increased 4.3% from a year earlier to US$1.19 billion, edging above analysts' expectations of $1.18 billion. The result was supported by a 6.5% rise in supply-chain revenue to $731.7 million.
Diluted earnings per share came in at $4.07, below expectations of $4.17, but up from $3.81 in the corresponding quarter of 2025, representing an increase of $0.26, or 6.8%.
The company said the improvement in diluted earnings per share was driven by higher net income and a lower weighted average diluted share count following share repurchases completed over the previous four quarters.
“In the second quarter, Domino’s drove meaningful order count growth,” said Russell Weiner, Domino’s Chief Executive Officer.
“I believe order growth is the most important driver of long-term success in our business. In a quarter where the broader U.S. QSR industry continued to face pressure on consumer demand, Domino’s generated order count growth across both our delivery and carryout businesses, bringing millions of new customers to our brand.
"These new customers strengthen our long-term growth flywheel by engaging with our loyalty program, while their orders power our supply chain business, fuel store growth, and drive market share.
"My conviction in Domino’s long-term growth potential remains as strong as ever. Our scale and competitive position have never been stronger.
"Domino’s is uniquely positioned to continue gaining market share and delivering long-term value for shareholders."
Supply-chain revenue benefited from higher order volumes across Domino's store network and a 2.2% increase in food basket pricing, reflecting modest inflation in ingredients and supplies sold to franchisees.
However, U.S. same-store sales rose just 0.1% in the quarter ended June 14, falling short of market expectations for a 0.62% increase. Comparable sales had risen 3.4% in the same period last year.
The quarter marked Domino's slowest U.S. same-store sales growth in five quarters, as higher living costs and a softer labour market continued to weigh on discretionary spending.
International same-store sales also disappointed, slipping 0.1% compared with analysts' expectations for a 0.5% increase. Sales had grown about 2.4% a year earlier.
The company's market cap stands at $10.94 billion.
