stockrowWhat it does
Domino’s Pizza is a global quick-service restaurant company focused on pizza delivery and carryout. Stores make pizzas and complementary food items, including bread products, wings, chicken, pastas, oven-baked sandwiches, soft drinks and desserts. Its stores use delivery and carryout service models rather than a full-service dine-in format.
The company is primarily a franchisor. Independent franchisees own and operate most stores, set employment practices and make local pricing decisions while using Domino’s brand, operating system, menu and technology. Domino’s also operates a network of company-owned U.S. stores, which it uses for operations, training, promotions and technology testing.
In international markets, Domino’s generally grants country or regional rights to master franchisees. Those partners develop markets, may sub-franchise stores and may operate stores and supply-chain operations. Domino’s dough is made fresh and distributed through its own supply chain and through franchisees.
Joe Jordan is chief executive officer. The company’s strategy, called Hungry for MORE, centers on food, operations, value and franchisees. In 2026, Domino’s introduced the Domino, an individual-choice pizza product intended for group occasions where customers want separate selections.
How it makes money
Domino’s earns money in three ways: franchise royalties and fees, sales through its supply-chain business, and retail sales at company-owned U.S. stores. Franchisees pay continuing royalties for the use of Domino’s brand marks, plus certain technology fees. U.S. franchisees generally pay a royalty based on sales, while international master franchisees pay royalties that vary by market. Franchise agreements also can include initial and new-store fees.
The supply-chain segment produces fresh dough and supplies food, equipment and other products to substantially all U.S. stores and most Canadian franchise stores. This is both a distribution operation and a source of revenue. Participating U.S. and Canadian franchisees and company-owned stores generally receive half of supply-chain pre-tax profit through profit-sharing arrangements.
Company-owned stores generate restaurant sales directly. Their role also includes testing store operations, technology and promotions and training prospective franchisees and operators.
For FY2025, Supply Chain revenue was $3.0 billion; in Q3 2026, income from operations increased 8.5%. Supply Chain represented 60.5% of FY2025 revenue, while U.S. Stores represented 32.6% and International Franchise represented 6.86%.
Retail sales at franchised and company-owned stores drive all three streams: royalties rise with franchisee sales, supply-chain volumes rise with store activity, and company-owned-store sales rise directly. Same-store sales and net store growth are therefore operating measures that affect revenue and profit.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Supply Chain | $3.0 billion | 60.5% | 5.05% |
| U S Stores | $1.6 billion | 32.6% | 4.53% |
| International Franchise | $338.7 million | 6.86% | 6.28% |
Customers and how it sells
Domino’s customers are consumers ordering pizza and other menu items for delivery or carryout. The company serves them through franchised and company-owned stores, digital ordering channels, its loyalty program and third-party delivery marketplaces. In the U.S., Domino’s has agreements with Uber Technologies and DoorDash that allow customers to order through their marketplaces.
Digital ordering is central to the U.S. business. The company has redesigned portions of its eCommerce platforms and is rolling out updated mobile applications. Its Domino’s Rewards program gives members points on qualifying orders that can be redeemed for menu items.
The company operates in the U.S. and international markets. International business is principally conducted through master franchisees, which adapt the operating model and menu to local preferences. Domino’s Pizza Enterprises is a named international master franchisee and operates stores in international markets. No customer accounted for more than 10% of consolidated revenue in 2025.
The company measures third-party delivery incrementality against its first-party channel and believes about half of its third-party delivery business is incremental rather than transferred from first-party delivery. It also reported order-count growth in delivery and carryout during Q3 2026, while lower average ticket reflected pressure on items per order.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Supply Chain | $3.0 billion | 60.5% | 5.05% |
| U S Stores | $1.6 billion | 32.6% | 4.53% |
| International Franchise | $338.7 million | 6.86% | 6.28% |
Suppliers and costs
Domino’s operates dough manufacturing and supply-chain centers in the U.S. and Canada. These facilities make fresh dough, receive and store ingredients and other products, and deliver them to stores. The company also leases a fleet of tractors and trailers for distribution.
Cheese is its largest food cost. U.S. franchisee cheese pricing is formula-based, using the Chicago Mercantile Exchange cheddar block price as its primary component plus a supply-chain markup. As cheese prices change, supply-chain revenue and margin percentages can change, while supply-chain dollar margins are intended to remain unchanged.
The company purchases substantially all U.S. pizza cheese from one supplier under an agreement that expires in December 2029. Most U.S. meat toppings come from one supplier under a contract that expires at the end of December 2027, subject to an extension option. Coca-Cola is the exclusive beverage supplier under an agreement that expires on December 31, 2030 or after a specified purchase threshold is met.
Food, labor, freight, build costs and commodity prices affect store and supply-chain economics. Domino’s periodically uses supplier contracts to manage commodity-price risk and has historically passed cost increases and savings through to stores.
- Revenue$4.9B
- Cost of revenue−$3.0B
- Selling, general and administrative−$1.0B
- Operating income$954.0M
Competitive position
Domino’s competes in the U.S. quick-service pizza delivery and carryout segments. Named national pizza-chain competitors include Pizza Hut, Papa John’s and Little Caesars Pizza, alongside regional, independent and local restaurants. It also competes with other restaurant formats and with order-and-delivery aggregation companies. Outside the U.S., Pizza Hut, Papa John’s and country-specific pizzerias are named competitors.
Competition can involve food quality, store location, brand image, service, technology, convenience and price. Consumer tastes, disposable income, promotional activity and delivery-marketplace scale can affect the competitive environment. Domino’s reported that it is the U.S. quick-service pizza market-share leader based on consumer-spending data for the year ended December 2025.
Our reading: Domino’s brand and store network are meaningful competitive assets because the company operates globally through franchisees and company-owned U.S. stores, but customers can choose national chains, local pizza sellers, restaurants and aggregators.
Our reading: The supply-chain system is a meaningful operating moat because it manufactures dough and distributes products to the store system, combining consistency with scale and franchisee profit sharing.
Our reading: Digital ordering, the operating system and loyalty program are meaningful but contestable advantages, because technology and convenience are stated bases of competition and aggregators provide alternative ordering routes.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Pizza Hut | U.S. and international quick-service pizza | High |
| Papa John’s | U.S. and international quick-service pizza | High |
| Little Caesars Pizza | U.S. quick-service pizza | High |
Growth opportunities
Domino’s growth model relies on adding stores, raising same-store sales, increasing order frequency and expanding supply-chain activity alongside the store base. Retail sales drive royalties, company-owned-store revenue and supply-chain revenue, so sales growth and unit growth affect multiple revenue streams.
The company’s U.S. development approach includes “fortressing”: adding locations within existing markets to reduce delivery areas and place stores closer to carryout customers. The company sees long-term potential for more than 8,500 U.S. stores. It expects international expansion to remain led by master franchisees and sees potential for 40,000 stores in China.
In Q3 2026, the company reported global net store growth of more than 950 stores over the preceding 12 months. It expects U.S. same-store sales to rise by low single digits in 2026, toward the low end of that range, and expects international same-store sales to be approximately flat. It expects 125 to 150 net new U.S. stores and approximately 800 net new international stores during 2026.
Growth initiatives include updated eCommerce platforms, loyalty offers intended to increase customer frequency, targeted promotions and menu innovation. The Domino product is designed for group occasions in which individuals want their own choice, including occasions on aggregator platforms. The company also seeks to improve items per order while maintaining value.
- $4.4BFY2021
- $4.5BFY2022
- $4.5BFY2023
- $4.7BFY2024
- $4.9BFY2025
Structural risks
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The quick-service pizza category and food-service and delivery markets are highly competitive. Competitors can affect demand through price, promotions, delivery options, technology, service, food quality and convenience.
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Consumer spending, disposable income, food costs, labor costs, build costs and macroeconomic conditions can pressure restaurant demand, average ticket, franchisee profitability and new-store development. In Q3 2026, the company said the macroeconomic environment was pressuring consumers and its U.S. development pipeline.
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The model depends on franchisees. Franchisee defaults, agreement terminations, succession issues, insurance gaps, litigation, operating failures or regulatory noncompliance can impair royalty collections, disrupt stores and harm the brand.
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International operations face foreign-exchange movements, geopolitical uncertainty, tariffs, trade barriers, local regulation, currency-conversion restrictions and longer royalty-payment cycles. The company also has an equity investment in DPC Dash in China.
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The company has substantial indebtedness. Debt-service obligations can use operating cash flow, increase exposure to adverse business conditions and reduce flexibility to respond to changes in the business or industry.
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Food supply depends in part on single suppliers for U.S. pizza cheese and most U.S. meat toppings. Commodity-price movements, supplier disruption, product-quality failures or replacement costs could affect supply-chain operations and store economics.
Leadership
Joe Jordan became chief executive officer in 2026, and Russell Weiner is expected to become executive chairman at the annual shareholder meeting in April.
| Name | Role | Since | Total pay, FY2025 |
|---|---|---|---|
| Russell J. Weiner | — | $10.7 million | |
| Sandeep Reddy | — | $3.7 million | |
| Joseph H. Jordan | — | $4.9 million | |
| Cynthia A. Headen | — | $2.8 million | |
| Kelly E. Garcia | — | $2.5 million |
Bottom line
Our reading
Our reading: Domino’s is principally a franchise-and-supply-chain business rather than a conventional company-operated restaurant chain: retail sales support recurring royalties and distribution volumes, while franchisees operate most stores. Our reading: Its operating model rests on brand, digital ordering, franchise relationships and an integrated supply chain, but it is exposed to consumer pressure, competitive value activity, franchisee economics, international uncertainty and debt obligations. Our reading: Store expansion, order frequency and supply-chain volumes are the main stated paths for growth.