Domino's Pizza Q2 Profit Up 15%

Domino's Pizza (NASDAQ:DPZ) reported second-quarter 2025 earnings on July 21, 2025, delivering a 14.9% increase in income from operations and 3.4% U.S. same-store sales growth, underpinned by a successful new menu launch and expansion on delivery aggregators. The company confirmed continued market share gains domestically and internationally, reaffirming robust multi-pronged growth strategies and providing clear quantitative guidance for both U.S. and global operations in 2025.

Transformational Product Launch Unlocks Incremental Traffic and Profitability

During the quarter, management said the addition of Parmesan-stuffed-crust pizza contributed to accelerated transaction counts and supported a menu mix with a higher average ticket, fueling both market share expansion. U.S. same-store sales growth reached 3.4%, with average ticket benefiting from 1.4% pricing and the addition of stuffed crust, which carries a higher price point -- priced at a $4 premium within the “mix and match” platform.

"Same-store sales accelerated to 3.4% for the quarter on the strength of our Parmesan stuffed crust pizza launch, which drove positive transaction counts. Average ticket benefited from 1.4% pricing and the addition of stuffed crust, which carries a higher price point. This was partially offset by a slight deterrent on mix due to a higher carryout business that carries a lower ticket visibility."
— Sandeep Reddy, Chief Financial Officer

The strategic move into the stuffed-crust segment provides Domino’s with a long-duration sales lever with sustained profit accretion, as highlighted by management, directly addressing a previous competitive disadvantage in core pizza offerings.

Aggregator Partnerships Are Expected to Drive Multi-Year Sales Growth and Market Share Gains

National rollout on DoorDash (NASDAQ:DASH), which is about twice as big as Uber (NYSE:UBER) in pizza sales, was completed at the end of the quarter, setting the stage for a step change in third-party delivery contribution in the second half. Historical evidence from the Uber launch and management’s commentary during the earnings call confirms DoorDash is expected to be a significant comp driver beyond just short-term “lapping” effects, countering industry skepticism about near-term comp sustainability after heavy aggregator ramp-up.

"The expectation is that our sales on DoorDash will build as awareness and marketing increases (as discussed on the earnings call). We continue to expect this to be a meaningful driver to our U.S. comp in the back half of the year."
— Sandeep Reddy, Chief Financial Officer

Domino's expects to gain a share of the $5 billion aggregator pizza category over time through participation on both Uber and DoorDash, simultaneously capturing new incremental, higher-income demand.

Sustained Franchisee Profitability and Resilient Value Leadership Bolster Share Capture

Despite pizza industry sales remaining flat for the first half of 2025, Domino’s retail U.S. sales grew 5.1%, primarily driven by same-store sales and net store growth, with a system-wide net addition of 30 U.S. stores. The mix-and-match deal, with only a $1 increase since 2009 (from $5.99 to $6.99), exemplifies the company’s long-term pricing discipline.

"We have best-in-class franchisee economics in QSR Pizza, the largest advertising budget, the best supply chain, and the rewards program that has never been bigger. We're now fully rolled out on the two largest aggregators, and with the addition of Stuffed Crust, have all the major crust types on our menu. We have never had this many tools at our disposal to capture market share."
— Russell Weiner, Chief Executive Officer

Domino’s structurally advantaged franchise and supply chain model supports consistent share gains even in stagnant category environments, positioning the brand for residual outperformance once broader QSR growth resumes.

Looking Ahead

Management reaffirmed guidance for U.S. same-store sales growth of 3% for FY2025, anticipating stronger results in the second half of the year due to DoorDash ramp and promotional activity, and international same-store sales of 1%-2%, with total global net store growth in the U.S. expected to exceed 175 locations for the year and match 2024 levels internationally. Operating income is forecast to grow approximately 8% excluding the impact of foreign currency (with foreign currency projected as a 1% headwind at current rates), with franchisee EBITDA growth expected to continue and no change to food inflation assumptions, which remain low-single-digit for the year.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Domino's Pizza, DoorDash, and Uber Technologies. The Motley Fool has a disclosure policy.