Domino's Pizza Q2 revenue rises 4.3% on supply chain and franchise gains

Gains were partially offset by lower revenue from US company-owned stores.

Domino's Pizza, Inc. reported a 4.3% increase in revenue in the second quarter of 2026, driven by higher supply chain volumes, stronger franchise royalties and net store growth across both its US and international markets.

Revenue rose $49.3m compared to the same period in 2025, with supply chain revenues climbing on higher order volumes and a 2.2% increase in the company's food basket pricing to stores.

US franchise royalties and advertising revenues also increased, driven by a higher average number of franchise stores open during the period following net store growth over the trailing four quarters. International franchise royalties rose on net store growth and a $1.1m favourable foreign currency impact.

These gains were partially offset by lower US company-owned store revenues, following the refranchising of certain company-owned store markets in the second quarters of both 2026 and 2025.

Domino's chief executive Russell Weiner said the company generated order count growth across both its delivery and carryout businesses during a quarter when the broader US quick-service restaurant industry continued to face pressure on consumer demand. He said new customers brought in during the period were engaging with the company's loyalty programme, powering its supply chain business and fuelling store growth, dynamics he described as central to the brand's long-term growth flywheel.

"My conviction in Domino's long-term growth potential remains as strong as ever," Weiner said. "Our scale and competitive position have never been stronger.”

Income from operations rose $7m, or 3.1%, compared to the second quarter of 2025. Excluding the currency tailwind, operating income grew by $5.9m, or 2.6%, driven by higher US and international franchise royalties and growth in supply chain gross margin. Higher general and administrative expenses partially offset those gains, including costs related to the company's Worldwide Rally, which takes place every two years.

Net income increased $4.7m, or 3.6%, supported by higher operating income and a $3.6m favourable change in pre-tax unrealised and realised losses tied to the company's investment in DPC Dash Ltd.

Net cash provided by operating activities was $352.6 million in the first two fiscal quarters of 2026, compared with $366.9 million in the same period of 2025. Capital expenditures totalled $39.0 million, resulting in free cash flow of $313.6 million, down from $331.7 million a year earlier. The company attributed the decline to changes in operating assets and liabilities and the timing of advertising payments, partially offset by the increase in operating income.

The group reported a diluted earnings per share increase to $4.07 from $3.81 in the second quarter of 2025, a $0.26 or 6.8% increase.