DPZ US S&P 500Russell 1000 Earnings call
Domino's (DPZ) · Q3 2026 results and valuation
Share price: $328.60 · 2026-11-11
Domino's is a global pizza company that operates through a franchise model and company-owned stores. It provides pizza and other food items for delivery and carryout to customers in numerous international markets. The company generates revenue through royalties, fees, and the sale of food products to its franchisees. Source: 10-K annual report (2026-02-23)
Results Q3 2026 vs Q2 2026 · previous quarter · published 13 Oct 2026 and 20 Jul 2026
Net income up 12.1% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
1 · Numbers
+12.1%
Net income vs Q2 2026
Outlook given
Net income 152.2M vs 135.8M
Revenue −0.7%
Against the same quarter last year (Q3 2025) it is +9.2%, so it is not just seasonal.
Why Against the same quarter last year (+9.2%), net income rose primarily because income from operations increased 8.5% in Q3, excluding the impact of foreign currency and minor refranchising true-up impacts related to the sale of certain US company owned store markets.
2 · How management spoke
Restrained
Less upbeat than 66% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Domino's expects operating income growth in the mid single digits, excluding the impact of foreign currency, refranchising gains, and the gain on the sale of corporate aircraft.
Valuation
Is Domino's undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-28), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.9% growth a year (3-year revenue growth), the model's fair value is $243.62 a share — the stock trades 35% above it. Today's price assumes 6.5% growth a year.
Current price
$328.60
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+6.5% for 10 yrs
Fair value / share
$243.62
Buy below
$182.71
Price vs fair value
Overvalued 35%
Price vs buy-below price
Overvalued 80%
Read between the lines
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Key theme
Operating income rose above expectations due to higher US and international franchise royalties and fees.
Source quote
“This increase in operating income which came in slightly above expectations, was primarily driven by higher US and international franchise royalties and fees.”
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Guidance
International same store sales growth is expected to be approximately flat for the year due to continued pressures at DPE.
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Key theme
DPZ expects operating income growth in the mid single digits, excluding the impact of foreign currency, refranchising gains, and the gain on the sale of corporate aircraft.
Source quote
“Lastly, reflecting these sales updates, we are now expecting operating income growth in the mid single digits, excluding the impact of foreign currency, refranchising gains, and the gain on the sale of our corporate aircraft.”
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Key theme
DPZ plans to drive growth by meeting evolving consumer expectations and earning more of their occasions more often.
Source quote
“As consumer expectations evolve, growth will come from understanding those changes meeting customers where they are, and earning more of their occasions more often.”
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Key theme
The company will evaluate the appropriate leverage level for the business due to the current interest rate environment.
Source quote
“Given the current interest rate environment, we will evaluate the appropriate leverage level for the business.”
4 more
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Key theme
DPZ believes its scale and franchisee profitability allow it to offer better value than the competition to enable continued growth despite changes in other large brands.
Source quote
“We believe, again, due to our scale, both franchisee profitability, we can offer better value than the competition, and that will enable us to continue to grow within the confines of that regardless of what happens with changes in ownership changes in approach from some of the other large brands.”
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Figure
DPZ maintained 4-wall profitability to continue offering value to customers despite uncertainty regarding how long current increased activity will last.
Source quote
“We are not sure how long that increased activity will continue to last, but regardless, if it goes on, we were in a position where we have the profit power, the 4-wall profitability to continue to offer great value to the customers.”
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Key theme
Franchisee profits are not moving in the right direction, which will result in incremental pressure going forward.
Source quote
“What I will say is until we get franchisee profits moving in the right direction, there will be incremental pressure going forward.”
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Guidance
DPZ indicated it is comfortable operating below the low end of its 4x leverage target due to the current environment.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“My job now is to turn that around, get back to the profit growth along with the order count growth, continue to expand our lead, and I believe push us...”
“And again, it is about continuing to drive that order count growth, but also pushing that ticket improvement that we saw in Q3, ideally by getting that item per order...”
“Lastly, reflecting these sales updates, we are now expecting operating income growth in the mid single digits, excluding the impact of foreign currency, refranchising gains, and the gain on the...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-06)
| Metric | Q3 2026period end 2026-09-06 | Q2 2026period end 2026-06-14 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.19B | 1.19B | −0.7% | 1.15B | +3.4% |
| Gross profit | 476.4M | 478.2M | −0.4% | 459.9M | +3.6% |
| Operating income | 241.8M | 232.0M | +4.2% | 223.2M | +8.3% |
| Net income | 152.2M | 135.8M | +12.1% | 139.3M | +9.2% |
| EPS | 4.60 | 4.07 | +13.0% | 4.08 | +12.7% |
| P/E today 18.4 | 18.8 | 18.4 | +0.4 | 27.1 | −8.3 |
Topics
Most discussed now
- I can tell you today that my confidence in the long term potential of this business is very high.
- Moving winning ideas faster across markets, and ensuring the entire system benefits from Domino's' best thinking.
- New Actual results or trends could differ materially from Domino's' forecast....
- New Build on those strengths, help Domino's' franchisees grow...
- New Including a best in class franchise system, an iconic brand, an outstanding global business with significant scale, and operating…
Faded since Q2 2026
- Fading Domino's has an exceptional global franchise system, talented people, a culture of innovation and operational excellence, and a brand…
- Fading Since I joined the company at the end of 2008, Domino's has more than doubled the number of orders coming...
- Fading The winners in QSR over time are the brands that can grow order counts while driving healthy ticket through disciplined...
- Fading While Domino's has not shared specific order count numbers in the past, and I won't start sharing them now on...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
Patricia E. Lopez retired from the Domino’s Pizza, Inc. Board of Directors effective October 7, 2026, for personal reasons.
- Results of operations · SEC 8-K
- Director or officer change; Other events · SEC 8-K
Domino’s Pizza, Inc. appointed Michael C. Creedon, Jr. and Anneliese Olson to its Board of Directors and elected Corie Barry as Lead Independent Director.
- Director or officer change; Regulation FD disclosure · SEC 8-K
Domino’s Pizza Inc. announced that Joe Jordan will become Chief Executive Officer on October 1, 2026, as Russell Weiner transitions to Executive Chairman and David Brandon retires after 28 years of service.
- Director or officer change · SEC 8-K
Domino’s Pizza, Inc. appointed Brian J. Pangburn as Vice President—Controller and principal accounting officer effective April 21, 2026, replacing Jessica L. Parrish in that specific role.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-18.
Cash & runway
Cash & equivalents
$229.0M
2026-09-06
Long-term investments
$28.1M
total liquidity $257.1M
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -2.6% YoY, -0.6% QoQ.
| Quarter | Shares |
|---|---|
| Q1 2025 | 34.3M |
| Q2 2025 | 34.2M |
| Q3 2025 | 33.9M |
| Q1 2026 | 33.6M |
| Q2 2026 | 33.2M |
| Q3 2026 | 33.0M |
Shares outstanding: 32.9M (2026-10-06)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 68 filings; 50 filings parsed.
Sold by insiders
37.3K shares
$12.6M · 24 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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at our annual shareholder meeting in April
becoming executive chairman
Source quote
“And I am excited to become executive chairman at our annual shareholder meeting in April.”
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the remainder of 2026
macro environment to remain an overhang on the consumer
Source quote
“Looking ahead to the remainder of 2026, we expect the macro environment to remain an overhang on the consumer through the balance of the year.”
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the fourth quarter
strong calendar and well positioned to compete
Source quote
“However, we have a strong calendar for the fourth quarter, and believe we are well positioned to compete.”
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fourth quarter results early next year
reporting of fourth quarter results
Source quote
“I look forward to sharing more of my perspective on Domino's and our long term opportunities when we report our fourth quarter results early next year.”
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2026 and beyond
return meaningful cash to shareholders
Source quote
“We continue to expect to return meaningful cash to shareholders in 2026 and beyond, in line with our capital allocation priorities.”