Domino’s Pizza posts 2.5% revenue growth in Q1 2025, reaching US$1.11B

GLOBAL – Domino’s Pizza has reported a 2.5% increase in revenue for the first quarter of 2025, reaching US$1.11 billion, up from US$1.08 billion in the same period of 2024.

Domino’s reported strong financial performance in the first quarter of 2025, driven primarily by increased US franchise advertising revenues, rising supply chain income, and higher international franchise royalties and fees.

The company’s net income grew significantly by 18.9%, reaching US$149.7 million compared to US$ 125.8 million in the same period of the previous year.

This increase was largely attributed to a favourable US$42.7 million shift in pre-tax unrealised gains and losses related to the revaluation of Domino’s investment in DPC Dash.

However, these gains were partially offset by a higher provision for income taxes.

Earnings per share (EPS) also saw a notable improvement. Diluted EPS rose by 21%, or US$0.75, increasing from US$3.58 to US$4.33.

This growth was driven by the higher net income and a lower weighted average diluted share count, reflecting the company’s ongoing share repurchase activity over the past year.

Operational cash flow mirrored this upward trend, with net cash from operating activities rising to US$179.1 million in Q1, up from US$123.5 million in the same quarter of 2024.

Capital expenditures declined to US$14.7 million from US$20.2 million, resulting in a free cash flow of US$164.4 million, substantially higher than the previous year’s US$103.3 million.

The increase in supply chain revenues was primarily due to a 4.8% rise in food basket pricing to stores in Q1 2025 compared to the same period in 2024.

Despite these gains, income from operations saw a slight decrease of US$ 0.3 million, or 0.2%.

Domino’s CEO Russell Weiner stated that the Q1 results were a clear indication of the success of the company’s “Hungry for MORE” strategy, which he said was helping Domino’s gain market share in the quick service restaurant (QSR) pizza segment across both domestic and international markets.

He emphasized that sustained market share growth demonstrated the company’s ability to control internal factors, which he identified as critical to long-term success.

US same-store sales dipped by 0.5% over the year. During the quarter, Domino’s opened 17 stores in the United States and closed 25 locations internationally, bringing its global store count to 21,358.

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