Why Domino's Pizza Stock Popped Today
Key Points
Market share gains are helping to drive Domino's profits higher.
Investors are in store for higher dividends.
- 10 stocks we like better than Domino's Pizza ›
Shares of Domino's Pizza (NASDAQ: DPZ) rallied on Monday after management highlighted the restaurant chain's massive expansion opportunity.
By the close of trading, Domino's stock price was up more than 4%.
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Domino's is winning market share
Even as struggling competitors like Pizza Hut shuttered locations, Domino's opened 392 new stores in the fourth quarter and a total of 776 in fiscal 2025.
The pizza king's popular promotions, such as its "Best Deal Ever," which features a pizza with any toppings for just $9.99, are resonating with value-focused consumers. Domino's same-store sales at its U.S. locations grew by 3.7% in the fourth quarter.
In all, the restaurant giant's revenue rose 6.4% to $91.8 million.
"These strong results flowed through to increased franchisee profits, showcasing our ability to drive store-level profitability while providing incredible value for our customers," CEO Russell Weiner said in a press release.
All told, Domino's net income climbed 7.2% to $12.2 million. Earnings per share, which were boosted by stock buybacks, jumped 9.4% to $5.35.
A long runway for expansion
Domino's rising profitability and strong free cash flow generation -- to the tune of $671.5 million in 2025 -- is enabling the company to boost its payouts to investors. The pizza leader raised its quarterly dividend by 15% to $1.99 per share.
Peering further into the future, Weiner sees the potential for Domino's to grow far larger than it is today.
"When I look at our current market share in comparison to other leaders within QSR [quick-service restaurants] who own 40% to 50% of their categories, I believe that Domino's can double our retail sales from where they are today," Weiner said during a conference call with analysts.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Domino's Pizza. The Motley Fool has a disclosure policy.
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