Domino’s Pizza (DPZ) Stock Rises on Strong Q4 Results and 14% Dividend Hike

TLDR

• U.S. same-store sales grew 3.7% in Q4, beating analyst estimates of 3.47%
• Revenue hit $1.54B, up 6.4% year-over-year and $20M above expectations
• EPS came in at $5.35, slightly below the consensus estimate of $5.37–$5.39
• Quarterly dividend raised by more than 14%, the latest in a string of increases
• DPZ stock climbed as much as 6% at Monday’s open following the results

Domino’s Pizza had a busy Monday morning. The pizza giant posted Q4 results that sent its stock climbing nearly 6% at the open, fueled by strong domestic sales, a dividend hike, and its 32nd consecutive year of international same-store sales growth.

U.S. same-store sales rose 3.7% for the quarter. That beat analyst expectations of 3.47% growth, driven by value-focused promotions and new menu items.

International same-store sales told a slightly different story. Growth came in at 0.7% for the quarter per Investing.com, or 1.9% according to Seeking Alpha’s figures, both reflecting pressure in markets like Australia and Japan where competition is fierce and demand has been soft.

Domino’s Pizza, Inc., DPZ

Total revenue for Q4 reached $1.54 billion, a 6.4% increase from the same period last year. That came in roughly $20 million ahead of what analysts had penciled in.

Earnings per share landed at $5.35, up from $4.89 a year earlier — a 9.4% jump. But it missed the consensus estimate, which ranged between $5.37 and $5.39 depending on the source.

The stronger profit figure was helped by $80 million in share buybacks during the year, which reduced the weighted average share count.

Dividend Boost

Domino’s raised its quarterly dividend by 14.4%. That’s a meaningful bump and came alongside what the company described as company-wide profit growth of 9%.

Revenue growth was supported by a 1.7% increase in food basket pricing, higher franchisee profits, and improved sales in both domestic and international markets.

Margin Pressure

Not everything moved in the right direction. The U.S. company-owned store gross margin narrowed sharply, falling 540 basis points to 15.5%. Higher insurance, labor, and food costs were to blame.

Overall gross margin, which includes international markets, told a better story — expanding 50 basis points to 39.7%.

Looking ahead, Weiner said the company expects to “meaningfully increase” its market share in the U.S. quick-service pizza category in 2026.

DPZ stock has declined 15.6% over the past 12 months. The stock was trading at $403.04 in premarket on Monday, up 4.8% at that point.

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