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 22,142 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, lasts 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.
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.
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Domino’s Pizza’s sales growth impresses despite macro headwinds
In the three months ended December 28, 2025, the company’s sales rose 6.4%, to $1.54 billion from $1.44 billion a year earlier. Revenue rose due to higher order volumes and an increase in pricing within the supply chain segment, as well as growth in U.S. franchise royalties and advertising fees. Same-store sales increased 3.7% in the U.S., while they rose 0.7% internationally. The pizza chain added 776 more restaurants over the last 12 months, with 392 in the latest quarter.
Excluding one-time items, earnings per share rose 9.4%, to $5.35 from $4.89.
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 14.4% with the March 2026 payment, to $1.99 from $1.74. Domino’s shares yield 2.2%.
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.
