One of the world's largest pizza companies, Domino's delivers pizza through a franchise network across dozens of markets. It began in 1960 when brothers Tom and Jim Monaghan bought a Michigan shop called DomiNick's; Jim later traded his half to Tom for the delivery Volkswagen Beetle. When the original owner barred the DomiNick's name for new stores, a delivery driver suggested "Domino's," and the logo's three dots stood for the first three locations.
Q2 FY2026 revenue rose 3.5% to $1,150.6M but net income fell 6.6% to $139.8M year over year.
U.S. growth faded to 0.1% in Q2 FY2026 after 0.9% in Q1. rose 3.5% to $1,150.6M and rose 0.5 points to 40.4%, but fell 6.6% to $139.8M on a investment swing and higher . The core franchise and supply chain model held while a prior debt refinancing now weighs on earnings.
Key takeaways
U.S. grew 0.1% in Q2 FY2026, down from 0.9% in Q1 FY2026, on higher transactions offset by a lower average ticket, while international same-store sales declined 0.1% excluding currency impacts.
Consolidated rose 3.5% to $1,150.6M and 4.3% to $1.19B per the MD&A, driven by supply chain revenues up 6.5% and global franchise royalties and advertising fees.
declined 6.6% to $139.8M and fell 4.6% to $4.13 as a $30M unfavorable swing in unrealized investment gains/losses and higher offset operating gains.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 4.3% to $1.19B driven by supply chain and franchise royalties, while net income grew 3.6% to $135.8M.
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Consolidated revenues increased 4.3% to $1.19B, primarily from higher supply chain revenues (+6.5%) and global franchise royalties and advertising fees.
rose 9.6% to $230.4M and rose 1.1 points to 20.0%, aided by a 0.6-point supply chain improvement from procurement productivity carried from Q1.
U.S. Company-owned store fell 4.2 points to 11.4% on higher food, labor, and insurance costs, continuing the pressure seen in Q1 at 12.2%.
The company repurchased $156.2M in stock and declared a $1.99 per share , with $164.8M unrestricted cash and $263.6M available on .
What changed
U.S. in Q2 2026 came in at 0.1% versus the 0.9% Q1 reading flagged to watch — the pace faded rather than held.
International ex-currency declined 0.1% in Q2 after the 0.4% Q1 decline flagged to watch — the slip persisted.
investment mark-to-market did not reverse: the $30M unfavorable Q1 swing flowed through to a 6.6% decline in Q2.
Supply chain improved 0.2 points to 12.0% in Q2 after the Q1 0.6-point gain flagged to watch — the trajectory held as food-cost relief fades.
was $4.9B in Q2 FY2026 versus $14.6M a year earlier, reflecting the $1.0B September 2025 refinancing carried onto the balance sheet per the FY2025 10-K.
Risk factors were restated with no material change from the FY2025 10-K, so no new company-specific risk was added this quarter.
What to watch
U.S. in Q3 FY2026 to see if the 0.1% Q2 reading holds or fades further.
International ex-currency in Q3 FY2026 after two consecutive declines (0.4% Q1, 0.1% Q2).
investment mark-to-market in Q3 FY2026 after the $30M unfavorable Q1 swing to see if it reverses.
Supply chain in Q3 FY2026 after the Q2 12.0% reading as food basket costs rise and relief fades.
U.S. grew just 0.1% (higher transactions, lower ticket), while international same store sales declined 0.1% excluding currency impacts.
Global net store growth was 209 in Q2, including 26 net U.S. openings and 183 international openings, driving royalty increases.
U.S. Company-owned store fell 4.2 percentage points to 11.4% due to higher food, labor, and insurance costs.
Supply chain improved 0.2 percentage points to 12.0%, benefiting from procurement productivity despite higher food basket costs.
The company repurchased $156.2M in stock and declared a $1.99 per share ; it had $164.8M in unrestricted cash and $263.6M available on its .
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk from variable-rate debt and foreign-currency exposure on ~7% of revenues are the primary market risks; commodity-price risk is noted but unhedged.
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The company has no outstanding borrowings under its as of June 14, 2026, but future draws would be exposed to rising SOFR-based rates.
Fixed-rate debt exposes the company to fair-value changes and refinancing risk if maturing debt must be replaced at higher rates.
Approximately 6.8% of total Q2 2026 revenues came from the , mostly in foreign currencies, and the company does not hedge this exposure.
A hypothetical 10% adverse move in foreign-currency rates would have negatively impacted royalty revenues by about $16.0 million in the first two fiscal quarters of 2026.
Food and commodity costs, particularly cheese, create margin volatility; the company may use fixed-pricing agreements with suppliers but has not historically used financial instruments to hedge.
We are a party to lawsuits, revenue agent reviews by taxing authorities and administrative proceedings in the ordinary course of business which include, without limitation, workers’ compensation, general liability, automobile and franchisee claims. We are also subject to suits r…
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We are a party to lawsuits, revenue agent reviews by taxing authorities and administrative proceedings in the ordinary course of business which include, without limitation, workers’ compensation, general liability, automobile and franchisee claims. We are also subject to suits related to employment practices. In addition, we may occasionally be party to large claims, including class action suits.
Litigation is subject to many uncertainties, and the outcome of individual litigated matters is unpredictable. These matters referenced above could be decided unfavorably to us and could require us to pay damages or make other expenditures in amounts or a range of amounts that cannot be estimated with accuracy. However, we do not believe these matters, individually or in the aggregate, will have a material adverse effect on the business or financial condition of the Company, and we expect that the established accruals adequately provide for the estimated resolution of such claims.