Stock Track | Domino's Pizza Soars 5.73% Pre-market on Strong Q2 Sales Growth and Market Share Gains

Stock Track
Jul 21

Domino's Pizza (NYSE: DPZ) shares surged 5.73% in pre-market trading on Monday following the release of its second-quarter 2025 financial results, which showcased robust sales growth and significant market share gains despite ongoing macroeconomic challenges.

The world's largest pizza chain reported a 3.4% increase in U.S. same-store sales, substantially beating analysts' expectations of 2.21% growth. This marks a strong comeback from the previous quarter's 0.5% decline and represents the company's first beat in same-store sales estimates in five quarters. Internationally, same-store sales grew by 2.4%, also surpassing the projected 1.71% growth.

Domino's CEO Russell Weiner highlighted the company's strong performance, stating, "In the U.S., both delivery and carryout grew, driving meaningful market share gains within the U.S. pizza quick-service restaurant category." This growth comes despite persistent inflationary pressures and recession fears that have been impacting the restaurant industry. The company's strategy of offering sustained low prices and driving volume appears to be paying off, helping it capture market share from competitors.

While Domino's reported total revenue of $1.15 billion, a 4.3% increase year-over-year and in line with analyst estimates, earnings per share came in at $3.81, slightly below the expected $3.95. The company attributed this earnings miss primarily to a $27.4 million charge associated with its investment in DPC Dash, its master franchisee in China. Despite this, investors seem to be focusing on the strong sales performance and market share gains, driving the stock's pre-market rally.

The pizza chain also reported global net store growth of 178 during the quarter, including 30 new stores in the U.S. and 148 internationally. This expansion, coupled with the company's robust supply chain, significant advertising budget, and expanded rewards program, positions Domino's well for continued growth and long-term value creation for franchisees and shareholders.

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