Domino's

DPZ

Market cap $14.1B

Domino's Pizza Inc. (NYSE:DPZ) has maintained its full-year 2025 guidance after reporting third-quarter earnings and sales that exceeded expectations, a performance attributed to successful promotional campaigns and expanding margins.

Domino's Pizza NASDAQ: DPZ delivered what investors wanted in Q3, sending its stock price into a reversal that could add 20% to the stock price this year and 100% or more over the long term. Investors wanted a better-than-expected report that affirmed the company's growth outlook, valuation, and capacity for aggressive capital returns.

Domino's Pizza delivered a strong Q3, exceeding expectations with accelerating FCF growth and improved risk/reward at a 23x forward P/FCF valuation. DPZ's fundamentals have improved, but debt levels remain high; the stock is upgraded from 'Sell' to 'Hold' due to better valuation and performance. The company launched a brand refresh and continues to outpace industry trends, but long-term investors should monitor debt and interest expenses closely.

American consumers are tightening their belts, but still have an appetite for pizza. Domino's, the country's largest quick-service pizza restaurant, released earnings Tuesday (Oct. 14) that showed the company enjoying a 5.2% increase in same-store U.S. sales.

There's a cheesy reason for Domino's Pizza's better-than-expected earnings.

The major U.S. equities indexes rebounded Tuesday afternoon from earlier losses amid lingering worries about U.S.-China trade tensions. The Dow and S&P 500 were slightly higher, while the tech-heavy Nasdaq was little changed.

Domino's Pizza logged higher third-quarter revenue, with the company citing both a recent promotion and stuffed crust pizza as driving orders.

Domino's Pizza Inc. has reported stronger-than-expected quarterly earnings, driven by customer demand for promotions and its popular stuffed crust pizza, though the pizza giant noted that sales momentum had slowed early in the fourth quarter.

Domino's Pizza, Inc. (NASDAQ:DPZ ) Q3 2025 Earnings Call October 14, 2025 8:30 AM EDT Company Participants Gregory Lemenchick - Vice President of Investor Relations Russell Weiner - CEO & Director Sandeep Reddy - Executive VP & CFO Conference Call Participants Dennis Geiger - UBS Investment Bank, Research Division David Palmer - Evercore ISI Institutional Equities, Research Division Brian Bittner - Oppenheimer & Co. Inc., Research Division David Tarantino - Robert W. Baird & Co. Incorporated, Research Division Gregory Francfort - Guggenheim Securities, LLC, Research Division Danilo Gargiulo - Sanford C.

DPZ delivers a Q3 earnings and revenue beat, powered by strong U.S. order growth and its "Best Deal Ever" promotion.