Third Quarter 2026
Filed Oct 13, 2026Third-quarter revenue increased 3.4%, income from operations increased 8.3%, and diluted earnings per share increased 12.7%, while U.S. same store sales grew 0.3% and international same store sales grew 0.2% excluding foreign currency impact.
Revenue, operating income, net income and diluted EPS increased year over year, supported by supply chain, royalty and fee revenue growth, procurement productivity and net store growth. Same store sales growth was modest in both the U.S. and international markets, while three-fiscal-quarter free cash flow declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues - third quarterGAAP | $1.19B | – | + 3.4% |
| Total revenues - three fiscal quartersGAAP | $3.53B | – | + 3.7% |
| Gross margin - third quarterGAAP | $476.4M | – | – |
| Gross margin percentage - third quarterGAAP | 40.2 % | – | – |
| Gross margin - three fiscal quartersGAAP | $1.42B | – | – |
| Gross margin percentage - three fiscal quartersGAAP | 40.2 % | – | – |
| Supply chain gross margin - third quarterother | 12.2% | – | + 0.9 pp |
| Supply chain gross margin - three fiscal quartersother | 12.1% | – | + 0.5 pp |
| General and administrative - third quarterGAAP | $105.7M | – | – |
| General and administrative - three fiscal quartersGAAP | $332.5M | – | – |
| Income from operations - third quarterGAAP | $241.8M | – | + 8.3% |
| Income from operations margin - third quarterGAAP | 20.4 % | – | – |
| Income from operations excluding foreign currency impact - third quarternon-GAAP | $241.8M | – | + 8.4% |
| Income from operations - three fiscal quartersGAAP | $704.2M | – | + 7.0% |
| Income from operations margin - three fiscal quartersGAAP | 19.9 % | – | – |
| Net income - third quarterGAAP | $152.2M | – | + 9.2% |
| Net income margin - third quarterGAAP | 12.8 % | – | – |
| Net income - three fiscal quartersGAAP | $427.7M | – | + 1.8% |
| Net income margin - three fiscal quartersGAAP | 12.1 % | – | – |
| Diluted earnings per share - third quarterGAAP | $4.60 | – | + 12.7% |
| Diluted earnings per share - three fiscal quartersGAAP | $12.80 | – | + 4.7% |
| Weighted average diluted shares - third quarterGAAP | 33,114,893 | – | – |
| Weighted average diluted shares - three fiscal quartersGAAP | 33,416,210 | – | – |
| Global retail sales - third quarterother | $4.84B | – | + 3.2% |
| Global retail sales - three fiscal quartersother | $14.43B | – | + 3.2% |
| U.S. global retail sales - third quarterother | $2.37B | – | + 2.1% |
| International global retail sales - third quarterother | $2.47B | – | + 4.3% |
| U.S. same store sales growth - third quarterother | + 0.3% | – | – |
| U.S. Company-owned stores same store sales growth - third quarterother | + 1.0% | – | – |
| U.S. franchise stores same store sales growth - third quarterother | + 0.3% | – | – |
| International same store sales growth excluding foreign currency impact - third quarterother | + 0.2% | – | – |
| Food basket pricing change - third quarterother | 2.2% | – | – |
| Third quarter 2026 net store growthother | 175 | – | – |
| Trailing four quarters net store growthother | 956 | – | – |
| Net cash provided by operating activities - three fiscal quartersGAAP | $520.6M | – | (5.7)% |
| Capital expenditures - three fiscal quartersGAAP | −$60.8M | – | + 7.2% |
| Free cash flow - three fiscal quartersnon-GAAP | $459.8M | – | (7.2)% |
| Leverage ratioother | 4.2x | – | (0.3)x |
| Consolidated Adjusted EBITDA - trailing four quartersnon-GAAP | $1.12B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. Company-owned stores - third quarter revenueLower U.S. Company-owned store revenues as a result of the refranchising of certain U.S. Company-owned store markets in the second quarter of 2026. | $61.43M | – | – |
| U.S. franchise royalties and fees - third quarter revenueRevenue increased primarily as a result of net store growth during the trailing four quarters. | $165.6M | – | – |
| Supply chain - third quarter revenueHigher order volumes and an increase in the Company’s food basket pricing to stores. | $746.2M | – | – |
| International franchise royalties and fees - third quarter revenueRevenue increased primarily as a result of net store growth during the trailing four quarters. | $83.7M | – | – |
| U.S. franchise advertising - third quarter revenueNo driver was separately stated. | $128.7M | – | – |
| U.S. Company-owned stores - three fiscal quarters revenueNo driver was separately stated. | $225.4M | – | – |
| U.S. franchise royalties and fees - three fiscal quarters revenueNo driver was separately stated. | $487.8M | – | – |
| Supply chain - three fiscal quarters revenueNo driver was separately stated. | $2.18B | – | – |
| International franchise royalties and fees - three fiscal quarters revenueNo driver was separately stated. | $246.5M | – | – |
| U.S. franchise advertising - three fiscal quarters revenueNo driver was separately stated. | $394.1M | – | – |
Capital returns
- On October 6, 2026, the Board of Directors declared a $1.99 per share quarterly dividend for shareholders of record as of December 15, 2026, to be paid on December 30, 2026.
- During the third quarter of 2026, the Company repurchased and retired 216,282 shares of common stock for a total of $73.6 million.
- During the three fiscal quarters of 2026, the Company repurchased and retired 848,503 shares of common stock for a total of $304.9 million.
- As of September 6, 2026, the Company had a total remaining authorized amount for share repurchases of $1.15 billion.
What drove it
- Global retail sales growth excluding foreign currency impact was + 3.2% in the third quarter, consisting of + 2.1% in U.S. stores and + 4.3% in international stores.
- Net store growth was 26 stores in the U.S. and 149 stores internationally, for 175 stores globally in the third quarter of 2026.
- Supply chain revenues benefited from higher order volumes and food basket pricing that increased 2.2%.
- Supply chain gross margin increased 0.9 percentage points primarily due to procurement productivity.
- U.S. and international franchise royalties and fees revenue increased primarily due to net store growth during the trailing four quarters.
- The diluted EPS increase was driven by higher net income and a lower weighted average diluted share count resulting from share repurchases during the trailing four quarters.
Concerns
- U.S. same store sales growth was + 0.3% in the third quarter, compared with + 5.2% in the third quarter of 2025.
- International same store sales growth excluding foreign currency impact was + 0.2% in the third quarter, compared with + 1.7% in the third quarter of 2025.
- U.S. Company-owned store revenue declined to $61,432 (in thousands) from $82,749 (in thousands), attributed to refranchising of certain markets in the second quarter of 2026.
- Net cash provided by operating activities decreased to $520.6 million and free cash flow decreased to $459.8 million in the three fiscal quarters of 2026.
- Free cash flow declined because of the timing and amount of payments for advertising activities and the negative impact of changes in operating assets and liabilities.
- Interest expense, net was $(44,160) (in thousands) in the third quarter, compared with $(40,952) (in thousands) in the prior-year quarter.
What to watch
- U.S. and international same store sales growth following third-quarter growth of + 0.3% and + 0.2%, respectively.
- The pace of global store development after 175 net store openings in the third quarter and 956 over the trailing four quarters.
- Supply chain margin sustainability following the 0.9 percentage point third-quarter increase attributed primarily to procurement productivity.
- Cash conversion and advertising-related working-capital effects after free cash flow declined to $459.8 million for the three fiscal quarters.
- Leverage and debt maturity positioning, with a leverage ratio of 4.2x as of September 6, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $229,035 (in thousands) as of September 6, 2026, compared with $125,675 (in thousands) as of December 28, 2025.
- Restricted cash and cash equivalents were $167,958 (in thousands) as of September 6, 2026, compared with $216,110 (in thousands) as of December 28, 2025.
- Current portion of long-term debt was $1,326,786 (in thousands) and long-term debt, less current portion, was $3,559,118 (in thousands) as of September 6, 2026.
- Total fixed-rate notes were $4,766,125 (in thousands) as of September 6, 2026.
- Total stockholders’ deficit was $(3,955,098) (in thousands) as of September 6, 2026.
- Net cash used in financing activities was $(451,666) (in thousands) in the three fiscal quarters ended September 6, 2026, compared with $(558,241) (in thousands) in the prior-year period.
- Purchases of common stock were $(308,239) (in thousands), and payments of common stock dividends and equivalents were $(134,331) (in thousands), in the three fiscal quarters ended September 6, 2026.
Analysis
Domino’s reported third-quarter revenue of $1,185.6 million, up 3.4% from $1,147.1 million. Global retail sales increased 3.2% excluding foreign currency impact, with U.S. retail sales growth of 2.1% and international retail sales growth of 4.3%. The underlying comparable-sales readings were modest: U.S. same store sales rose 0.3% and international same store sales, excluding foreign currency impact, rose 0.2%. Store expansion remained the larger growth contributor, with 175 net global store openings in the quarter, including 26 in the U.S. and 149 internationally.
Revenue growth was led by supply chain and franchise royalty and fee revenue. Supply chain revenue rose to $746,154 (in thousands) from $696,959 (in thousands), with higher order volumes and a 2.2% increase in food basket pricing cited as the primary drivers. U.S. and international franchise royalties and fees also increased primarily from trailing-four-quarter net store growth. These gains were partly offset by U.S. Company-owned store revenue declining to $61,432 (in thousands) from $82,749 (in thousands), reflecting refranchising of certain U.S. Company-owned store markets in the second quarter of 2026.
Profit growth outpaced revenue growth. Income from operations increased 8.3% to $241.8 million, and the operating margin was 20.4% versus 19.5%. Supply chain gross margin improved 0.9 percentage points to 12.2%, primarily due to procurement productivity. Net income increased 9.2% to $152.2 million, while diluted EPS increased 12.7% to $4.60. The company attributed the EPS growth to higher net income and a lower weighted average diluted share count following share repurchases during the trailing four quarters.
For the three fiscal quarters, revenue increased 3.7% to $3,530.6 million and income from operations increased 7.0% to $704.2 million. Cash generation was lower: operating cash flow declined 5.7% to $520.6 million and free cash flow declined 7.2% to $459.8 million. The company attributed the free-cash-flow decrease to advertising payment timing and the negative impact of changes in operating assets and liabilities, partly offset by higher operating income excluding the pre-tax realized gain on the sale of its fully depreciated corporate aircraft in the first quarter of 2026.
Capital allocation remained active. Domino’s repurchased and retired 216,282 shares for $73.6 million in the quarter and 848,503 shares for $304.9 million through the first three fiscal quarters, with $1.15 billion remaining under its authorization as of September 6, 2026. The Board declared a $1.99 per share quarterly dividend on October 6, 2026. The leverage ratio declined to 4.2x from 4.5x, while the company reported $4,766,125 (in thousands) of total fixed-rate notes. No forward financial guidance was provided in the release.
Management, verbatim
As I step into the CEO role, I am honored to lead Domino’s and build on the competitive advantages that have long set us apart: our iconic brand, best-in-class franchise system, global scale and proven operating capabilities.
Joe Jordan, Domino’s Chief Executive Officer
Our opportunity now is to capitalize on those strengths by getting even closer to our customers, helping our franchisees grow their profitability and turning our best performance into our everyday performance.
Joe Jordan, Domino’s Chief Executive Officer
By advancing winning ideas faster and executing them with greater clarity, speed and consistency, we can earn more occasions, continue gaining market share and create meaningful long-term value for shareholders.
Joe Jordan, Domino’s Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue guidance, gross margin guidance, operating expense guidance and tax-rate guidance were not provided.
- Prior-period guidance was not provided.
- Quarterly operating cash flow, capital expenditures and free cash flow were not provided.
- A non-GAAP net income or non-GAAP diluted EPS measure was not provided.
- Segment-level revenue growth percentages were not printed on the revenue rows.
- Quarterly cash balance comparison with the immediately preceding quarter was not provided.
- Variable funding notes borrowings were not separately reported in the leverage-ratio reconciliation.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.