Domino's Q3 Earnings Show Profit, Soft U.S. Sales

Domino’s Pizza reported higher profit and operating-income growth in its third-quarter 2026 earnings release on Oct. 13, even as U.S. same-store sales were nearly flat and management lowered its U.S. net-store-growth guidance.

Quarter Results and Trends

For the quarter ended Sept. 6, 2026, Domino’s said revenue rose 3.4% year over year to about $1.19 billion. Net income increased 9.2% to $152.2 million, while diluted earnings per share rose 12.7% to $4.60. Income from operations grew 8.3%, or 8.4% excluding a $0.2 million negative foreign-currency impact on international franchise royalties. The earnings-call transcript described an 8.5% adjusted operating-income gain after further exclusions related to refranchising true-ups.

Global retail sales, excluding currency effects, increased 3.2%. U.S. same-store sales rose 0.3%, down from 5.2% a year earlier, while international same-store sales increased 0.2% excluding currency, compared with 1.7% in the prior year. U.S. retail sales grew 2.1%, with customers ordering more pizzas but spending less per order.

Domino’s added 175 net stores during the quarter, including 26 in the U.S. and 149 internationally. Supply-chain gross margin widened to 12.2% from 11.3%, primarily due to procurement productivity. Management attributed much of the operating-income improvement to higher U.S. and international franchise royalties and fees, along with supply-chain performance.

Guidance and Strategy

Management lowered 2026 U.S. net-store-growth guidance to 125–150 stores and expects U.S. same-store sales growth toward the low end of the low-single-digit range. International same-store sales are forecast to be roughly flat, with about 800 net new international store openings anticipated. The company projects global retail sales growth in the low-to-mid-single digits and operating-income growth in the mid-single digits on an exclusions basis.

The earnings call highlighted priorities including franchisee profitability, operational consistency, faster execution, and technology-enabled customer experience. Domino’s introduced a product called the Domino, designed to personalize items within group orders and enhance competitiveness on aggregator platforms. Management noted the macroeconomic environment will continue to weigh on consumers through the rest of 2026. The company reiterated a long-term U.S. opportunity of more than 8,500 stores.

Domino’s management said, “We expect the macro environment to remain an overhang on the consumer through the balance of the year.”