Domino’s Pizza Inc. stock is trading higher on Monday after the company reported its second-quarter 2025 earnings.

The pizza giant reported second-quarter revenue of $1.15 billion, beating the analyst consensus estimate of $1.14 billion.

Revenues increased 4.3% year over year, primarily due to higher supply chain revenues, higher U.S. franchise royalties and fees, and higher U.S. franchise advertising revenues.

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The increase in supply chain revenues was primarily attributable to an increase in the company’s food basket pricing to stores, which increased 4.8% and higher order volumes.

These increases were partially offset by a shift in the relative mix of products sold by the company and the transition of the company’s equipment and supplies business to a third-party supplier.

The company reported earnings per share (EPS) of $3.81, falling short of the consensus estimate of $3.93.

Global retail sales increased by 5.6% when excluding the impact of foreign currency fluctuations. In the U.S., same-store sales grew by 3.4%, while international same-store sales, also excluding foreign currency impact, increased by 2.4%.

The company also saw significant expansion, with global net store growth totaling 178 new locations, including 30 in the U.S. and 148 internationally.

U.S. company-owned store gross margin decreased 2.0 percentage points in the second quarter of 2025, driven primarily by higher insurance costs and the increase in the company’s food basket pricing to stores. These decreases were partially offset by higher sales leverage.

The supply chain gross margin increased by 0.5 percentage points, primarily due to procurement productivity, partially offset by the company’s food basket cost increase.

The company’s income from operations increased 14.8% to $225 million. However, net income decreased 7.7% to $131.1 million, primarily due to an unfavorable change in pre-tax net realized and unrealized losses associated with the company’s investment in DPC Dash Ltd, as well as a higher effective tax rate.

The company’s board declared a quarterly dividend of $1.74 per share to be paid on September 30. During the quarter, Domino’s repurchased and retired 315,696 shares of common stock for $150 million, with $614.3 million remaining in its share repurchase authorization.

Russell Weiner, Domino’s CEO on Monday said, “In the U.S., both delivery and carryout grew, driving meaningful market share gains within the U.S. pizza QSR category. We are now fully rolled out on the two largest aggregators and offer all the major crust types, including stuffed crust. With what we believe are best-in-class unit economics, the largest advertising budget, a robust supply chain, and a rewards program that is bigger than ever, our business is well-positioned.”

Price Action: At last check Monday, DPZ stock was trading higher by 3.83% to $483.79 during the premarket session.

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