Domino’s Pizza’s unique business model, where 95% of stores are franchisee-operated, generates high-margin royalty revenues and predictable cash flows that have funded 12 consecutive years of dividend increases and aggressive share buybacks.
Beyond its attractive valuation, the firm possesses genuine competitive advantages that position it for multi-year growth. The company’s moat is difficult for competitors to replicate, especially when international expansion and the balance sheet remain strong. That gives investors defensive growth exposure with pricing power.
DOMINO’S PIZZA (New York symbol DPZ; www.dominos.com) gives you exposure to the world’s largest chain of pizza stores offering takeout and delivery. The company (symbol DPZ on New York) operates 21,750 outlets, in the U.S. and 85 other countries. Franchisees run most of these stores.
Domino’s continues to innovate to attract and retain customers.
For instance, earlier this year it launched its first-ever stuffed-crust offering with the addition of a cheese-stuffed pizza to its menu. The new item is promoted as having a “buttery-flavoured crust,” stuffed with mozzarella, and topped with sprinkled Parmesan cheese and garlic seasoning.
Meanwhile, to boost sales, in May 2025, the company added the DoorDash app for delivery orders across the U.S. It later expanded the service to Canada.
DoorDash orders are delivered by Domino’s drivers and a pilot program has expanded to an unspecified number of cities for a total of 7,000 locations in the U.S. The company also uses the Uber Eats app.
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The partnerships with DoorDash and Uber help Domino’s bring in more customers. As more diners choose delivery, third-party aggregators have become an important channel. Domino’s charges a slight premium across its entire menu on the DoorDash and Uber platforms.
Domino’s same-store sales growth impresses despite macro headwinds
In the three months ended September 7, 2025, the company’s sales rose 6.2%, to $1.15 billion from $1.08 billion a year earlier. Same-store sales increased 5.2% in the U.S., while they rose 1.7% internationally. The pizza chain added 748 more restaurants over the last 12 months, with 214 in the latest quarter. Excluding one-time items, earnings per share fell 2.6%, to $4.08 from $4.19, as costs rose. However, that beat the consensus forecast of $3.96.
Domino’s profits and U.S. same-store sales beat forecasts—driven by promotions and new menu items as consumers tighten their food budgets amid economic uncertainty. That economic uncertainty, as well as persistent inflation, has prompted consumers to prioritize value when dining out or ordering in.
To cater to the shift in consumer spending, Domino’s revived its “Best Deal Ever” promotion in August 2025, offering any-topping pizzas for $9.99 U.S. It also introduced other new items such as the parmesan-stuffed-crust pizza (see above).
All in all, the pandemic was a boon for top pizza chains like Domino’s as consumers avoided public spaces and instead opted for delivery and curbside pickup. That boosted Domino’s, which was already outpacing rivals given its commitment to tech-enabled carry-out and delivery. Meantime, those moves are still paying off.
Domino’s raised its quarterly dividend by 15.2% with the March 2025 payment, to $1.74 from $1.51. Domino’s shares yield 1.7%.
All this bodes well for company profits and future share price gains for investors.
Recommendation in Power Growth Investor: Domino’s Pizza is a buy.
