Domino’s Pizza has reported a 2.5% increase in revenue for the first quarter of 2025, amounting to $1.11bn, in comparison to $1.08bn posted in the same period of 20224.
The growth is primarily attributed to enhanced US franchise advertising revenues, an uptick in supply chain revenues and increased international franchise royalties and fees.
The company’s net income also saw a substantial rise of 18.9% at $149.7m, compared with $125.8m reported in the same period of the previous year.
This was largely due to a favourable $42.7m change in pre-tax unrealised gains and losses associated with the remeasurement of Domino’s investment in DPC Dash.
However, these gains were partially mitigated by a higher provision for income taxes.
Earnings per share (EPS) experienced a boost, with diluted EPS climbing from $3.58 to $4.33 – a 21% or $0.75 increase.
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By GlobalDataThis was driven by the higher net income and a reduced weighted average diluted share count, a result of the company’s share repurchases over the past year.
Operational cash flow also reflected positive momentum, with net cash from operating activities reaching $179.1m in Q1, a notable rise from $123.5m in the corresponding quarter of 2024.
Capital expenditures dropped to $14.7m from $20.2m, yielding a free cash flow of $164.4m – an improvement from the previous year’s $103.3m.
The increase in supply chain revenues was primarily due to a 4.8% rise in the company’s food basket pricing to stores during the first quarter of 2025 compared to the first quarter of 2024.
Despite these positive financial indicators, income from operations saw a slight decrease of $0.3m or 0.2%.
Domino’s chief executive officer Russell Weiner stated: “Domino’s Q1 results demonstrate that our Hungry for MORE strategy continues to drive market share growth in QSR [quick service restaurant] pizza across both our US and international businesses.
“Sustained market share growth reflects a company’s ability to control what is under its control, a key to long-term success. In the face of a challenging global macroeconomic environment, our Hungry for MORE strategic pillars are working together to drive MORE sales, MORE stores and MORE profits, annually. This is how we will deliver long-term value for our franchisees and shareholders.”
US same-store sales declined 0.5% during the year. The company opened 17 stores in the US and closed 25 internationally, and now has a total of 21,358 locations worldwide.
