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Domino’s shares jump as franchise store operators spend more on ingredients

Domino’s shares jump as franchise store operators spend more on ingredients
Domino’s shares jump as franchise store operators spend more on ingredients

The pizza chain’s stock jumped about 7% in premarket trading after revenue was around 2.5% higher than analysts’ estimates for the second quarter.

Shares of Domino’s jumped Monday after the pizza-delivery giant beat Wall Street’s consensus on revenue, citing franchisees buying more supplies.

The Ann Arbor, Mich.–headquartered company reported a 4% year-on-year increase in revenue to $1.194 billion in the second quarter — beating analysts’ average estimate by about 2.5%, according to data collected by London Stock Exchange Group.

For the three months ended June 14, Domino’s posted earnings per share of $4.07, marginally higher than forecasts of $4.06, per LSEG, and nearly 7% higher than in the same period last year.

Its stock rose more than 7% in premarket trading in New York.

‘The spike in the share price is mostly a consequence of the results not being as bad as expected.’ — Neil Saunders, GlobalData Retail

The pizza behemoth put revenue growth down to franchise store owners’ purchases of ingredients, with prices higher than in the second quarter of 2025.

“I believe order growth is the most important driver of long-term success in our business,” CEO Russell Weiner said in a statement accompanying the results. “In a quarter where the broader U.S. QSR [quick-service restaurant] industry continued to face pressure on consumer demand, Domino’s generated order count growth across both our delivery and carryout businesses, bringing millions of new customers to our brand.”

The 66-year-old company said it saw retail sales grow by 3% to $4.85 billion, owing largely to 209 new-store openings both in the U.S. and internationally, representing a beat of about 1% compared with forecasts.

It reported same-store-sales growth of 0.1% domestically — down from 3.4% a year ago. Analysts expected a decline of 0.3%.

“The spike in the share price is mostly a consequence of the results not being as bad as expected,” Neil Saunders, managing director and retail analyst at GlobalData Retail, told MarketWatch on Monday. “The fast-food sector is under a lot of pressure right now and while Domino’s numbers weren’t great, they showed some unexpected resilience.”

The results follow a troubling first half of the year for Domino’s, with shares about 13% lower since the start of 2026. The chain missed Wall Street estimates on revenue and profit in its first quarter as customers cut back on unnecessary spending.

Rivals McDonald’s and Restaurant Brands International which owns Burger King and Popeyes, are set to release earnings during the first week of August. Yum Brands the parent company of KFC, Taco Bell and Pizza Hut, is due to report at the end of next week.

Read on: A massive lettuce recall hits home as local restaurants shake up their salad menus

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