Domino's Pizza reports slowing global retail sales growth
Global retail sales growth, excluding foreign currency impact, decelerated to 3.0% in the second quarter.
Domino's Pizza (DPZ) reported a deceleration in global retail sales growth for the second quarter. The pizza delivery chain saw a trend of slowing momentum across its primary markets, as growth in both domestic and international segments softened compared to previous periods.
Global retail sales growth, excluding foreign currency impact, fell to 3.0% in the second quarter. This followed a 3.4% increase in the first quarter and a 4.9% increase in the fourth quarter of 2025.
In the United States, same-store sales growth slowed to 0.1%. The result marks a continued decline from 0.9% in the first quarter and 3.7% in the prior year's fourth quarter. International same-store sales, excluding foreign currency impact, declined 0.1%, extending a downward trajectory from a 0.4% decline in the first quarter and 0.7% growth in the fourth quarter of 2025.
Income from operations grew 3.1% year-over-year. This growth rate was lower than the 9.6% increase reported in the first quarter and the 8.0% increase in the fourth quarter of 2025.
Supply chain gross margin expanded 0.2 percentage points to 12.0% compared to the second quarter of 2025. This expansion was smaller than the 0.6 percentage point increase recorded in the first quarter. Food basket pricing to stores rose 2.2% year-over-year, down from a 2.6% increase in the first quarter.
Net store growth accelerated to 209 stores in the second quarter, up from 180 stores in the first quarter. The company's leverage ratio improved to 4.3x as of June 14, 2026, compared to 4.7x on June 15, 2025.
Free cash flow for the two fiscal quarters ended June 14, 2026, was $313.6 million, down from $331.7 million in the prior year period.
Domino's announced a CEO succession plan on June 22, 2026. Joe Jordan will become CEO effective October 1, 2026, replacing Russell Weiner.