Domino's Pizza, Inc. Q4 FY2025 earnings call

• Russell is proud of the team and franchisees for executing the Hungry For More strategy. The QSR pizza category in US is not declining but growing historically. Domino's has dominated the category and expects momentum to continue. 2025 was a successful year with growth in sales, stores, market share, and profits. Initiatives like Parmesan Stuffed Crust and Best Deal Ever had strong 2025. 2026 outlook includes expecting US comp growth of 3%, continuing growth on aggregator platforms, enhanced ecommerce platform, brand refresh, and scale advantages. International business expects same store sales growth and acceleration in net store growth, working on turning around Domino's Pizza Enterprises.

In the US, carryout and delivery businesses grew. In 2025, US same store sales grew 3%, opened 172 net stores, gained market share. International business had 30th straight year of same store sales growth, China and India opened almost 600 net stores combined. Delivery represented 45% of transactions and 56% of sales, carryout 55% of transactions and 44% of sales. US franchisee per store profitability was approximately $166,000.

Global retail sales growth expected to be approximately 6%. US comp for 2026 expected to be 3% with higher first half. International same store sales expected 1% - 2%. Expect 175+ net stores in US and approximately 800 net stores internationally. Operating income growth approximately 8% excluding foreign currency and refranchising gains. Food basket expected up low single digits. Supply chain margins to grow due to procurement productivity. G&A as a percentage of global retail sales to be approximately 2.3%. Technology fee increased. Operating income margins to expand slightly. Interest expense generally in line with 2025. Foreign currency expected to have modest benefit. Tax rate range 21% - 23%. CapEx approximately $120,000,000 in 2026.

Q: Brian Bittner asks about share drivers and industry growth.

A: Russell and Sandeep respond about initiatives like product innovations, operational excellence, renown value, and industry growth with Domino's gaining market share.

Q: Dennis Geiger asks about US sales outlook and contribution from existing vs new initiatives.

A: Sandeep talks about same store sales, initiatives like Parmesan Stuffed Crust, loyalty program, Best Deal Ever, and carryout business.

Q: Dennis Geiger asks about delivery US sales outlook.

A: Russell and Sandeep discuss delivery not at fair share on aggregators, growth potential, and delivery business performance.

Q: David Tarantino asks about doubling US retail sales.

A: Russell and Sandeep talk about market share gain, potential for doubling retail sales, and guidance through 2028.

Q: Peter Saleh asks about income cohorts and delivery carryout switching.

A: Russell says Domino's grew all income cohorts in Q4, Sandeep says delivery carryout overlap is mid teens.

Q: Gregory Francfort asks about tech stack changes.

A: Russell talks about relaunching ecommerce site, mobile web, DOM OS system, and orchestration engine.

Q: Danilo Gargiulo asks about insurance costs and restaurant margins.

A: Sandeep and Russell discuss insurance impact on corporate stores, franchisee profitability, and margins.

Q: Sara Senatore asks about delivery business growth and comp.

A: Sandeep talks about 3P vs 1P, delivery growth potential, and pricing being flat.

Q: John Ivankoe asks about US store growth.

A: Russell and Sandeep talk about store closures, growth pace, and protecting franchisee profitability.

Q: Patrick asks about international development.

A: Russell and Sandeep discuss international store growth, DPE, and India/China growth.

Q: Jeff Farmer asks about menu pricing and GLP ones.

A: Russell talks about GLP ones impact and pricing assumptions for 2026