More people are ordering from Domino's Pizza, but they aren't necessarily spending more. The company hopes to push consumers to spend more through its new dessert offering this summer.
Domino's stock jumped 2% on Monday after the pizza chain reported second-quarter results that beat Wall Street's expectation on revenue, but missed the bar for earnings.
For the quarter that ended June 14, the pizza chain posted total revenue of $1.19 billion, up 4.3% from the same period a year ago and above Wall Street's expectation of $1.18 billion. The company reported $4.07 in earnings per share, up 6.8% from $3.81 a year ago, but below the $4.17 consensus expectation from analysts surveyed by FactSet.
Domino's said its revenue increased because its franchised stores ordered more ingredients and supplies. The firm also charged franchisees higher prices for those products, which helped boost earnings. Favorable currency movements further increased the value of the overseas revenue when converted into U.S. dollars.
Systemwide sales increased 1.9% from a year ago in the U.S. market and 4.1% in international markets. But much of the growth was driven by new store openings. Domino's same-store sales only rose 0.1% in the U.S., while international same-store sales, excluding impact from currency movements, declined 0.1%.
The comany said it's delivered "meaningful" growth in order count. "In a quarter where the broader U.S. QSR industry continued to face pressure on consumer demand, Domino's generated order count growth across both our delivery and carryout businesses," said CEO Russell Weiner in a statement.
In an interview with Barron's, Weiner framed the firm's earnings miss as a ticket issue rather than a traffic problem, pointing to weaker-than-planned uptake of its premium Stuffed Crust series.
Weiner says the company plans to boost ticket size through add--on items rather than raising prices. The company recently launched S'mores Lava Cake, a flavor update to its classic Chocolate Lava Cakes. The CEO hopes the new item could nudge customers to spend more per visit.
For the full year, Domino's expects low-single-digit comparable-sales growth in both the U.S. and international markets, management said on the last earnings call in April.
The second-quarter results follow a weak first quarter that pushed Domino's stock lower in 2026. U.S. same-store sales increased only 0.9%, while international comparable sales declined 0.4%, highlighting pressure on lower-income customers and fiercer promotional competition across the pizza category.
This has pressured investor sentiment: Domino's shares have lost nearly a quarter of their value in 2026 as of Friday's close.
Despite overall weakness in the pizza category, Domino's remains the leader and has continued gaining share in the U.S. pizza market, partially thanks to its promotional and marketing events such as the "Best Deal Ever," a limited-time promotion offering any pizza with any toppings for $9.99 each when ordered online. Partnerships with third-party delivery platforms have also given the chain access to a broader range of customers.
Still, investors are concerned that repeated discounts may support traffic at the expense of franchisee profitability. Weiner told Barron's that Domino's scale, which means lower input costs and a larger advertising budget, allows it to run promotions profitably for its franchisees.
In June, Domino's said Joe Jordan -- currently its U.S. president and operating chief -- would succeed Russell Weiner as CEO, starting on Oct. 1.
Write to Evie Liu at evie.liu@barrons.com
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(END) Dow Jones Newswires
July 20, 2026 16:55 ET (20:55 GMT)
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