PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q2 2025 financial statements show total assets increased to $1.81 billion and YTD net income rose to $280.7 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 15, 2025, total assets increased to **$1.81 billion**, while total liabilities rose to **$5.79 billion**, widening the stockholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 15, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,007,558 | $905,278 | | **Total assets** | **$1,811,293** | **$1,737,013** | | **Total current liabilities** | $1,688,181 | $1,612,462 | | **Total liabilities** | $5,785,920 | $5,699,304 | | **Total stockholders' deficit** | **($3,974,627)** | **($3,962,291)** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 total revenues increased to $1.15 billion, with YTD net income rising to $280.7 million and diluted EPS to $8.14 Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,145,144 | $1,097,736 | $2,257,200 | $2,182,383 | | **Income from Operations** | $225,044 | $196,103 | $435,139 | $406,516 | | **Net Income** | $131,091 | $141,978 | $280,742 | $267,802 | | **Diluted EPS** | $3.81 | $4.03 | $8.14 | $7.61 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) YTD 2025 net cash from operating activities significantly increased to $366.9 million, while financing activities used $261.3 million Cash Flow Summary (in thousands) | Activity | Two Fiscal Quarters Ended June 15, 2025 | Two Fiscal Quarters Ended June 16, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $366,860 | $274,150 | | **Net cash provided by (used in) investing activities** | $14,795 | ($44,960) | | **Net cash used in financing activities** | ($261,312) | ($70,657) | - The increase in cash from financing activities was primarily due to a significant increase in purchases of common stock, which rose to **$203.0 million** from **$25.0 million** in the prior-year period[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment income, refranchising gains, DPC Dash investment sale, and a declared quarterly dividend of $1.74 per share Segment Income (YTD 2025 vs YTD 2024, in thousands) | Segment | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | U.S. Stores | $265,801 | $265,590 | | Supply Chain | $147,031 | $129,563 | | International Franchise | $129,343 | $118,429 | | **Total Segment Income** | **$542,175** | **$513,582** | - In Q2 2025, the company refranchised 36 U.S. Company-owned stores in Maryland for $8.5 million, recognizing a pre-tax gain of **$3.9 million**[54](index=54&type=chunk) - The company sold 4,200,000 ordinary shares of its investment in DPC Dash (China master franchisee) in Q2 2025 for net proceeds of **$44.1 million**[39](index=39&type=chunk) - Subsequent to the quarter end, on July 15, 2025, the Board of Directors declared a **$1.74 per share** quarterly dividend[34](index=34&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Operations) Q2 2025 global retail sales grew 5.6%, consolidated revenues rose 4.3% to $1.15 billion, and operating income increased 14.8% [Overview and Strategy](index=18&type=section&id=MD%26A_Overview) Domino's, with over 21,500 locations, primarily operates as a franchisor, guided by its 'Hungry for MORE' growth strategy - As of June 15, 2025, Domino's has **over 21,500 locations** in over 90 markets, with **approximately 99%** being franchisee-owned[66](index=66&type=chunk)[67](index=67&type=chunk) - The 'Hungry for MORE' strategy is built on four pillars: Most Delicious Food, Operational Excellence, Renowned Value, and Enhanced by Best-in-Class Franchisees[71](index=71&type=chunk)[72](index=72&type=chunk) [Performance and Statistical Measures](index=19&type=section&id=MD%26A_Statistical_Measures) Q2 2025 global retail sales grew 5.6% (ex-currency), with U.S. same-store sales up 3.4% and 178 net new stores added globally Global Retail Sales Growth (Excluding Foreign Currency) | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | U.S. stores | +5.1% | +6.8% | | International stores | +6.0% | +7.7% | | **Total** | **+5.6%** | **+7.2%** | Same Store Sales Growth | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | U.S. stores | +3.4% | +4.8% | | International stores (ex-currency) | +2.4% | +2.1% | - The company added a net of **178 stores** in Q2 2025, comprising **30 net new stores** in the U.S. and **148 internationally**[85](index=85&type=chunk) [Results of Operations](index=21&type=section&id=MD%26A_Results_of_Operations) Q2 2025 consolidated revenues increased 4.3% to $1.15 billion, driven by supply chain and franchise royalties, despite a DPC Dash investment loss - Consolidated revenues increased **$47.4 million** (**4.3%**) in Q2 2025, primarily due to higher supply chain revenues and U.S. franchise royalties and fees[88](index=88&type=chunk) - Supply chain revenues increased by **$27.8 million** (**4.2%**) in Q2 2025, driven by a **4.8%** increase in food basket pricing and higher order volumes[95](index=95&type=chunk) - Consolidated gross margin percentage increased by **0.5 points** to **40.3%** in Q2 2025, helped by higher franchise revenues which have no cost of sales component[99](index=99&type=chunk) - General and administrative expenses decreased by **$8.3 million** (**7.2%**) in Q2 2025, primarily because the 2024 Worldwide Rally did not reoccur in 2025[103](index=103&type=chunk) - The company recorded a **$16.0 million** pre-tax loss on its investment in DPC Dash in Q2 2025, compared to an **$11.4 million** gain in Q2 2024[109](index=109&type=chunk) [Segment Income](index=27&type=section&id=MD%26A_Segment_Income) All segments reported income growth in Q2 2025, with U.S. stores up 3.5%, supply chain up 14.2%, and international franchise up 11.0% Segment Income (in millions) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | U.S. stores | $134.0 | $129.5 | +3.5% | | Supply chain | $74.2 | $65.0 | +14.2% | | International franchise | $65.6 | $59.1 | +11.0% | [Liquidity and Capital Resources](index=28&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company maintains strong liquidity with $272.9 million in cash and expects to refinance $1.14 billion of current long-term debt - Primary liquidity sources are cash from operations and two variable funding note facilities totaling **$320.0 million** in capacity[121](index=121&type=chunk) - As of June 15, 2025, the company had **$263.6 million** of available borrowing capacity under its variable funding notes[121](index=121&type=chunk) - The company repurchased **$200.0 million** of its common stock in the first two quarters of 2025, with **$614.3 million** remaining under the current authorization[130](index=130&type=chunk) - Approximately **$1.14 billion** of long-term debt is classified as current, related to notes with an anticipated repayment date of October 2025, which the company expects to refinance[126](index=126&type=chunk)[127](index=127&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on variable funding notes, commodity price volatility, and foreign currency exchange risk impacting international revenues - The company faces interest rate risk on its variable funding notes and expects to refinance **$1.14 billion** of maturing debt at higher interest rates[140](index=140&type=chunk)[141](index=141&type=chunk) - The company is exposed to volatility in food costs, especially commodity prices for products like cheese[142](index=142&type=chunk) - A hypothetical **10%** adverse change in foreign currency rates would have reduced royalty revenues by an estimated **$13.4 million** in the first two fiscal quarters of 2025[143](index=143&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of **June 15, 2025**[144](index=144&type=chunk) - No material changes were made to the Company's internal control over financial reporting during the second quarter of 2025[145](index=145&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation, which management does not expect to materially adversely affect its financial condition - The company is involved in ordinary course litigation but does not expect it to have a material adverse effect on its business or financial condition[146](index=146&type=chunk)[147](index=147&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K - No material changes to risk factors were reported since the 2024 Form 10-K[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 315,696 shares for $150.0 million, with $614.3 million remaining for future repurchases Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Period 4 (Mar 24 - Apr 20) | 1,205 | $458.23 | — | | Period 5 (Apr 21 - May 18) | 112,070 | $480.42 | 110,977 | | Period 6 (May 19 - Jun 15) | 206,250 | $472.23 | 204,719 | | **Total** | **319,525** | **$475.05** | **315,696** | - As of June 15, 2025, **$614.3 million** remained available for future share repurchases under the authorized program[151](index=151&type=chunk) [Other Information](index=34&type=section&id=Item%205.%20Other%20Information) Three executive officers adopted new Rule 10b5-1 trading plans for future stock sales during Q2 2025 - Three Section 16 officers adopted Rule 10b5-1 trading arrangements during the quarter: **Joseph H. Jordan (COO)**, **Sandeep Reddy (CFO)**, and **Kelly E. Garcia (CTDO)**[157](index=157&type=chunk)[159](index=159&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) The report lists various exhibits filed, including corporate governance documents and CEO/CFO certifications - Filed exhibits include CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and corporate governance documents[160](index=160&type=chunk)

Group 1 - The core point of the article is that Domino's Pizza reported second-quarter revenue of $1.15 billion, exceeding market expectations of $1.14 billion [1]

Exhibit 99.1 For Immediate Release Contact: Greg Lemenchick Vice President - Investor Relations investorrelations@dominos.com Domino's Pizza® Announces Second Quarter 2025 Financial Results Global retail sales growth (excluding foreign currency impact) of 5.6% U.S. same store sales growth of 3.4% International same store sales growth (excluding foreign currency impact) of 2.4% Global net store growth of 178, including 30 net store openings in the U.S. and 148 net store openings internationally Income from o ...

Core Insights - Domino's Pizza, Inc. reported a global retail sales growth of 5.6% in Q2 2025, with U.S. same-store sales growth at 3.4% and international same-store sales growth at 2.4% [1][4] - The company achieved a net store growth of 178, with 30 openings in the U.S. and 148 internationally [1][4] - Income from operations increased by 14.8%, reaching $225 million, while net income decreased by 7.7% to $131 million due to unfavorable changes in investment valuations and higher tax provisions [1][15] Financial Performance - Total revenues for Q2 2025 were $1.145 billion, a 4.3% increase from Q2 2024, driven by higher supply chain revenues and U.S. franchise royalties [4][15] - U.S. Company-owned store gross margin decreased by 2.0 percentage points to 15.6%, while supply chain gross margin increased by 0.5 percentage points to 11.8% [15] - Diluted earnings per share (EPS) fell to $3.81, a decrease of 5.5% compared to the previous year [15][25] Operational Highlights - The company had a total of 21,536 stores globally as of June 15, 2025, with 7,061 in the U.S. and 14,475 internationally [4][21] - The food basket pricing increased by 4.8% compared to the same quarter last year, impacting revenue and cost of sales [5][15] - The company declared a quarterly dividend of $1.74 per share, payable on September 30, 2025 [6] Shareholder Returns - In Q2 2025, the company repurchased 315,696 shares for $150 million, with a total of 430,976 shares repurchased for $200 million in the first two fiscal quarters [7] - As of June 15, 2025, the remaining authorized amount for share repurchases was $614.3 million [7] Market Position - Domino's continues to leverage its strong market position with a significant advertising budget and a robust supply chain, aiming for long-term value creation for franchisees and shareholders [2][21] - The company has fully rolled out on the two largest aggregators and offers all major crust types, enhancing its competitive edge in the pizza QSR category [2]

Core Insights - Domino's Pizza, Inc. is set to release its second-quarter earnings results on July 21, with expected earnings of $3.96 per share, a decrease from $4.03 per share in the same period last year [1] - The company is projected to report quarterly revenue of $1.14 billion, an increase from $1.1 billion a year earlier [1] - Stephen Kramer has been appointed to the Board of Directors as of June 30 [1] Stock Performance - Domino's shares experienced a decline of 0.6%, closing at $465.95 [2] Analyst Ratings - Barclays analyst Jeffrey Bernstein maintained an Underweight rating and reduced the price target from $425 to $420 [4] - Citigroup analyst Jon Tower maintained a Neutral rating and raised the price target from $480 to $500 [4] - Argus Research analyst John Staszak reiterated a Hold rating with a price target of $490 [4] - BMO Capital analyst Andrew Strelzik maintained an Outperform rating and increased the price target from $515 to $540 [4] - Wells Fargo analyst Zachary Fadem maintained an Equal-Weight rating and raised the price target from $445 to $465 [4]

Group 1: Bank of America - Bank of America is the second largest U.S. bank by total domestic deposits and the third largest investment bank by fees, earning most of its revenue from interest, making it sensitive to interest rates [4] - The company reported a 7% increase in net interest income to $14.7 billion, with GAAP earnings rising 7% to $0.89 per diluted share [6][8] - Berkshire Hathaway sold 48,660,056 shares of Bank of America, reducing its position by 7%, but it remains the fourth-largest holding [7] - Wall Street anticipates a median target price of $54 per share for Bank of America, implying a 14% upside from the current price of $47.30 [9] Group 2: Domino's Pizza - Domino's is the largest pizza company globally, benefiting from innovations like anywhere ordering and partnerships with Uber and DoorDash [10] - The company reported a 2.5% revenue increase to $1.1 billion and a 21% increase in GAAP earnings to $4.33 per diluted share, despite missing top-line estimates [12] - Analysts expect Domino's earnings to grow at 10% annually over the next three to five years, with a median target price of $530 per share, indicating a 14% upside from the current price of $66 [13]

Core Insights - Warren Buffett has significantly reduced his stake in Apple, selling over 615 million shares, which represents a 67% decline, while still holding 300 million shares, making it his largest investment by market value [5][6][10] - Despite selling off a large portion of Apple, Buffett has been actively investing in consumer-facing businesses, particularly Domino's Pizza, which has shown consistent growth and innovation [4][14][18] Investment Activity - Buffett's selling activity has been more pronounced than buying since October 2022, with a total of $174.4 billion more sold than purchased [4][13] - The decision to sell a significant portion of Apple may be influenced by concerns over corporate income tax rates and the company's stagnant growth in physical device sales [6][8][10] Company Performance - Apple's net income has slightly declined from $94.7 billion in fiscal 2021 to $93.7 billion in 2024, with earnings per share (EPS) growth primarily driven by share repurchases rather than revenue growth [9][11] - Domino's Pizza has demonstrated strong performance, achieving 31 consecutive years of same-store sales growth internationally, and has a strategic growth plan focused on innovation and franchisee engagement [15][16][18] Valuation Concerns - Apple's forward price-to-earnings (P/E) ratio is currently at 27, which is considered high given the company's stagnant profit growth, leading to concerns about its valuation [10][11] - Domino's Pizza, while not cheap at 24 times forward-year earnings, is viewed favorably due to its strong brand loyalty and commitment to shareholder returns through dividends and stock repurchases [18]

Core Viewpoint - Investors are increasingly interested in stable income streams, making Domino's Pizza's upcoming earnings report and dividend offerings particularly noteworthy [1] Earnings Report Expectations - Domino's Pizza is expected to report quarterly earnings of $3.96 per share, a decrease from $4.03 per share in the same period last year [2] - Projected quarterly revenue is $1.14 billion, up from $1.1 billion a year earlier [2] - Morgan Stanley analyst Brian Harbour has maintained an Overweight rating for Domino's Pizza and raised the price target from $510 to $514 [2] Dividend Insights - Domino's currently offers an annual dividend yield of 1.48%, translating to a quarterly dividend of $1.74 per share, or $6.96 annually [3] - To achieve a monthly dividend income of $500, an investor would need to own approximately 862 shares, equating to a total investment of about $404,019 [4] - For a more conservative monthly income goal of $100, an investor would need 172 shares, requiring an investment of around $80,616 [4] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which can fluctuate based on stock price changes [5] - For example, if the annual dividend is $2 and the stock price is $50, the yield is 4%. If the stock price rises to $60, the yield drops to 3.33% [5] - Conversely, if the stock price falls to $40, the yield increases to 5% [5] Dividend Payment Variability - The dividend payment can change over time, affecting the dividend yield. An increase in dividend payment raises the yield if the stock price remains constant, while a decrease lowers it [6] - Domino's Pizza shares rose by 0.7% to close at $468.70 on Thursday [6]

Core Insights - Domino's Pizza, Inc. (DPZ) is set to report its second-quarter 2025 results on July 21, with earnings expected to be $3.93 per share, reflecting a 2.5% decrease from the previous year [1][2][8] - The company has a history of beating earnings estimates, with an average surprise of 6.5% over the last four quarters [1] Q2 Estimates - The Zacks Consensus Estimate for revenues is $1.14 billion, indicating a 4% growth year-over-year [2] - Earnings estimates have been revised downward by 0.3% in the past 30 days [2] Factors Influencing Performance - Expansion efforts, digitalization, and menu innovation are expected to positively impact second-quarter results [2] - The launch of Parmesan Stuffed Crust Pizza is anticipated to enhance customer satisfaction and order sizes [2] - Increased revenues from the supply chain due to higher order volumes and food basket pricing are likely to support top-line growth [3] Partnerships and Customer Engagement - The partnership with DoorDash, launched in May 2025, is expected to significantly boost pizza sales, potentially doubling the size of Uber Eats in this segment [3] - The Domino's Rewards program has been crucial in enhancing U.S. performance and customer retention [4] Revenue Projections - U.S. store revenues are projected to grow 4.9% to $382.7 million, while supply-chain revenues are expected to rise 3.1% to $680 million [5] - Comparable store sales (comps) for U.S. company-owned and franchise stores are predicted to grow 5.5% and 6.8%, respectively [4] Challenges - Despite new initiatives, the company may face challenges from weak traffic, particularly among lower-income consumers, which could impact delivery business [5] - Inflationary pressures in commodity and labor costs, along with macroeconomic challenges, are likely to negatively affect the bottom line [6] Earnings Prediction - The model predicts an earnings beat for Domino's, supported by a positive Earnings ESP and a Zacks Rank of 3 [7][9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Domino's Pizza despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Domino's Pizza is expected to report quarterly earnings of $3.93 per share, reflecting a -2.5% change year-over-year, while revenues are projected at $1.14 billion, an increase of 3.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.23% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Domino's is lower than the consensus estimate, resulting in an Earnings ESP of -0.27%, suggesting a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, Domino's exceeded expectations with earnings of $4.33 per share against an anticipated $4.12, achieving a surprise of +5.10% [13]. Over the last four quarters, the company has beaten consensus EPS estimates three times [14]. Investment Considerations - Despite the potential for an earnings beat, other factors may influence stock performance, making it essential to consider the Earnings ESP and Zacks Rank before the earnings release [15][16].