DPZ

Over the past six months, Domino’s shares (currently trading at $348.68) have posted a disappointing 13.1% loss, well below the S&P 500’s 12.3% gain. This might have investors contemplating their next move. Is now the time to buy Domino's, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free. Even though the stock has become cheaper, we’re sitting this one out for now. Here are three reasons you should be careful with DPZ, plus one stock we’d rather own. Same-store sales show the change in sales at restaurants open for at least a year. This is a key performance indicator because it measures organic growth. Domino’s demand within its existing dining locations has been relatively stable over the last two years but was below most restaurant chains. On average, the company’s same-store sales have grown by 1.7% per year. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Domino’s revenue to rise by 4.8%, close to This projection doesn’t excite us and implies its newer menu offerings will not accelerate its top-line performance yet. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. As you can see below, Domino’s margin was unchanged over the last year, showing it couldn’t improve. Its free cash flow margin for the trailing 12 months was 13%. Domino’s business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 16.4× forward P/E (or $348.68 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We’re pretty confident there are superior stocks to buy right now. We’d suggest looking at a top digital advertising platform riding the creator economy. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Domino's Pizza stock has retreated over the past several years, and today the Discounted Cash Flow (DCF) intrinsic value estimate points to a premium to that share price while market based multiples look broadly in line. Recent returns raise the question of whether this pricing gap reflects caution on the long term outlook or a market that is comfortable with current valuations. Over the past 5 years the share price has fallen 27.1%, which means long term holders have seen meaningful capital pressure despite Domino's Pizza remaining a large, established brand. The growth push in China through master franchisee DPC Dash, alongside ongoing global expansion, can support higher long term cash flow. However, execution risks in newer markets may limit how much value investors are willing to ascribe to those future earnings today. With a value score of 3 out of 6, Domino's Pizza screens as a mixed picture rather than a clear bargain or clear overvaluation on the broad valuation checks. For investors, the debate is whether Domino's Pizza's current share price already reflects the cash flow potential that the intrinsic value estimate assumes, or if recent weakness has opened up enough of a margin between price and value to be attractive. Extend your Domino's Pizza research into a wider watchlist and compare how other established consumer stocks are priced using the hand picked 44 high quality undervalued stocks. The Discounted Cash Flow (DCF) model values Domino's Pizza by projecting the cash it could return to shareholders and discounting that back to today. On this view, the latest twelve month free cash flow is about $659.3 million, with the model assuming broadly growing cash flows over time rather than sharp swings. Those projections translate into an estimated intrinsic value of about $294.95 per share, which suggests Domino's Pizza screens as overvalued by roughly 18.7% compared with the current share price. The growth that DPC Dash is reporting in China helps explain why the market may be comfortable paying above the DCF estimate, because investors can see a concrete international expansion plan. On balance, the Discounted Cash Flow workup indicates Domino's Pizza stock currently looks overvalued relative to the cash it is projected to generate. Our Discounted Cash Flow (DCF) analysis suggests Domino's Pizza may be overvalued by 18.7%. Discover 44 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Domino's Pizza. The P/E ratio suits Domino's Pizza because earnings are a key driver for a mature, branded consumer stock. Domino's Pizza currently trades on about 19.4x earnings, which is below both the Hospitality industry average of roughly 23.0x and the selected peer group average of about 26.8x. On Simply Wall St's more tailored fair P/E estimate, which is about 20.4x based on the company’s profile, risks and sector, Domino's Pizza sits only slightly below that level. The gap between the current 19.4x and the fair 20.4x is modest, so the market appears to be pricing Domino's Pizza broadly in line with what its recent fundamentals and risk profile suggest. Overall, Domino's Pizza appears roughly fairly valued on its P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Domino's Pizza sit on the Community page and extend the valuation work above into clear future paths for the company. They spell out which combinations of growth, margins and earnings would need to hold for Domino's Pizza's stock to be worth materially more or less than today. Where a ratio or model gives a single number, Narratives unpack the future behind that figure so you can monitor whether it is playing out. Community views on Domino's Pizza pull in opposite directions, with one side leaning toward upside and the other flagging valuation pressure. Bull case: 14% undervalued Read the full Bull Case to see why Domino's Pizza could be undervalued Bear case: 18% overvalued Read the full Bear Case to see why Domino's Pizza could be overvalued Do you think there's more to the story for Domino's Pizza? Head over to our Community to see what others are saying! For Domino's Pizza, the Discounted Cash Flow (DCF) work suggests the stock is overvalued, while the P/E multiple points to pricing that is about right relative to peers. That split mainly reflects different views on how much of the future cash flow potential should be recognised today. With broader valuation checks coming out as a mixed picture, the central issue for investors is whether Domino's future international growth and margins can support both the current price and the cash flow profile implied in the intrinsic value estimate. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DPZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Revenue reached RMB3.13 billion, representing 20.8% year-over-year growth Transaction volume grew 33.7% YoY; same-store transaction count grew 7.1% Net profit reached RMB81.0 million, representing 22.9% year-over-year growth Net addition of 235 new stores in the first half; total network expanded to 1,550 stores across 75 cities HONG KONG, Aug. 26, 2026 /PRNewswire/ -- DPC Dash Ltd – Domino's Pizza China ("DPC Dash" or the "Company", together with its subsidiaries, the "Group") (1405.HK), Domino's Pizza's exclusive master franchisee in the Chinese Mainland, the Hong Kong Special Administrative Region of China, and the Macau Special Administrative Region of China, today announced its unaudited condensed consolidated interim financial results for the six months ended June 30, 2026 (the "Interim Results"). FIRST HALF OF 2026 HIGHLIGHTS [1] Revenue reached RMB3,133.8 million, representing an increase of 20.8% from RMB2,593.4 million in the same period of 2025. Opened 235 net new stores and entered 15 new cities during the first half of 2026. Total stores reached 1,550, across 75 cities, with 532 stores in Tier 1 cities and 1,018 stores in non-Tier 1 cities, as of June 30, 2026. New stores opened in 2026 New City markets [2] generated average daily sales of RMB28,230 during the first half of 2026, with a weighted average expected payback period of approximately 14.8 months. Transaction volume increased 33.7% YoY, supported by continued national store network expansion. Same-store transaction count grew 7.1%. Average Transaction Price (ATP) was RMB72.9, compared with RMB80.7 in the same period of 2025, primarily reflecting heavy consumer subsidies offered by third-party aggregator platform (3PP) campaigns from mid-2025. Average daily sales per store (ADS) declined by 8.4% during the first half of 2026 as compared to the same period of 2025, primarily due to lower realized average transaction prices (ATP), which declined by 9.6% during the period. Same-store Transaction Count Growth (SSTG) was 7.1%, compared to 3.9% in the same period of 2025. Same-store Sales Growth (SSSG) was -4.8%, primarily reflecting lower realized ATP, compared with -1.0% in the same period of 2025 and -1.9% in the second half of 2025. Delivery sales grew 44.7% to RMB1,618.8 million, compared to RMB1,118.5 million in the same period of 2025. Total loyalty program membership reached 41.9 million, an increase of 39.2% from 30.1 million a year earlier. Loyalty members' revenue contribution was 60.1% in the six months ended June 30, 2026. Store-level EBITDA was RMB544.5 million, representing an increase of 8.3% from RMB502.8 million in the same period of 2025. Store-level EBITDA margin was 17.4%, compared to 19.4% in the same period of 2025. Store-level operating profit was RMB390.4 million, representing an increase of 2.9% from RMB379.2 million in the same period of 2025. Store-level operating profit margin was 12.5%, compared to 14.6% in the same period of 2025. Adjusted EBITDA was RMB350.7 million, representing an increase of 8.6% from RMB322.9 million in the same period of 2025. Adjusted EBITDA margin was 11.2%, compared to 12.4% in the same period of 2025. Adjusted Net Profit was RMB98.2 million, representing an increase of 7.4% from RMB91.4 million in the same period of 2025. Adjusted Net Profit margin was 3.1%, compared to 3.5% in the same period of 2025. Net Profit was RMB81.0 million, an increase of 22.9% from RMB65.9 million in the same period of 2025. Basic and Diluted EPS were RMB0.62 and RMB0.61, up 24.0% and 24.5% YoY respectively. As of June 30, 2026, the Group held RMB934.7 million in cash and bank balances, as compared to RMB1,001.5 million as of December 31, 2025. Ms. Aileen Wang, CEO & Executive Director of DPC Dash, commented, "We delivered another period of strong growth in the first half of 2026, with revenue of RMB3.13 billion, up 20.8% year-over-year, and transaction volumes up 33.7%. Our national expansion accelerated, with 235 net new stores added and entry into 15 new cities, bringing our total network to 1,550 stores across 75 cities. Importantly, our same-store transaction counts grew 7.1%, reflecting healthy underlying customer demand and the continued resonance of the Domino's brand in China. Notably, same-store transaction growth in our New City markets turned positive for the first time. These stores had launched with exceptionally strong initial sales, and the ensuing normalization from that elevated base has been a meaningful contributor to our overall same-store sales softness. We benefited from the industry-wide 3PP subsidy dynamics since mid-2025 and saw our delivery penetration in our Initial City markets further lifted up and the delivery penetration in our New City markets accelerated when we choose to launch delivery services in these markets earlier than planned. However, the temporary downside is a lower ATP, which also weighed on same-store sales growth. Looking ahead, while we will continue our disciplined store expansion, we will also focus on initiatives to elevate the ATP and continue to grow the transaction volumes. We are confident in the long-term structural opportunity ahead as we build the leading pizza platform in China." Ms. Helen Wu, CFO of DPC Dash, added, "Our first-half results reflect the operating leverage of our scaled model even in a competitive pricing environment. Revenue grew 20.8% to RMB3.13 billion, Store-level EBITDA increased 8.3% to RMB544.5 million, and Adjusted EBITDA rose 8.6% to RMB350.7 million. Adjusted Net Profit was up 7.4% to RMB98.2 million and net profit attributable to owners grew 22.9% to RMB81.0 million. Store operating margin was squeezed, reflecting the impact on ATP decrease on the back of deep subsidies during 3PP campaign. With observed gradual rationalization on subsidies, we are also focused on our own efforts and initiatives to improve the ATP. Corporate-level cost efficiency continued to unfold, with total corporate-level cost charges declining from 8.1% to 7.5% of revenue. We ended the period with RMB934.7 million in cash and bank balances and a gearing ratio of 7.9%, positioning us well to continue investing in our store network, supply chain infrastructure, and digital capabilities while delivering sustainable long-term shareholder value." FIRST HALF OF 2026 Financial Results Recent Developments Based on store count, mainland China has become the second-largest international market within Domino's global system. Among Domino's network of more than 22,500 stores worldwide, Domino's Pizza China now holds all of the top 70 positions in the first 30-day sales ranking. DPC Dash further strengthened its marketing leadership with the appointment of Ms. Joanne Xie as Chief Marketing Officer in May 2026. Ms. Xie oversees brand building, digital and data-driven omni-channel marketing, and category innovation, and brings over 20 years of marketing management experience, having previously served as Vice President of Marketing at McDonald's China and held marketing roles at Coca-Cola and Mondelēz. On product innovation, DPC Dash continues to innovate product and collaborate with popular IP to engage with customers, including the Crispy Croissant Crust, American Inspired Pulled BBQ Pork Pizza, and football-themed Mexican Inspired Salsa Roast Chicken and Beef Rectangular Pizza, alongside the new "Energy Bowl" series and new beverages, offering customers a broader range of dining choices. The Company also partnered with Arknights (明日方舟) to drive sales and engage with more young customers. On 21 August, 2026, DPC Dash also commenced operations at its Wuhan Supply Chain Centre ("Wuhan SCC"), the Company's fourth SCC, with an annual production capacity to support over 200 stores. The facility will service stores in Wuhan and surrounding areas — previously supported jointly by the Shanghai, Beijing and Dongguan SCCs to optimize logistics costs for dough delivery. The Company has also secured sites for two additional SCCs in Chengdu and Nanjing, targeted to commence operations in the second half of 2027. Outlook The Group plans to open approximately 350 net new stores in 2026 (net of store closures). During the first half of 2026, the Group achieved a net opening of 235 new stores. As of 14 August 2026, the Group has opened an additional 27 stores, with 38 stores under construction and 36 stores signed or approved, keeping the Group well on track to deliver the 2026 full year opening target. Looking ahead, the Company will continue to expand its store network, targeting sales improvement at existing outlets as 3PP subsidies gradually abate. As of June 30, 2026, across the 75 cities where the Company has a presence, Domino's store density reached approximately 2.5 stores per million population, versus an estimated 13.9 pizza stores per million population in China overall, demonstrating considerable growth potential. Conference Call Information The Company will hold a conference call on Wednesday, August 26, 2026, at 7:00 pm Hong Kong Time (or Wednesday, August 26, 2026, at 7:00 am Eastern Time) to discuss the financial results. A live audio-only webcast of the call can be accessed directly at https://event.choruscall.com/mediaframe/webcast.html?webcastid=MpPkCWtq To participate by phone, participants are strongly encouraged to pre-register for the conference call, by using the link provided below. Upon registering, each participant will receive a set of participant dial-in numbers, the event passcode, and a unique access PIN, which can be used to join the conference call. Pre-registration Link: https://dpregister.com/sreg/10211056/1049e3b17b0 An audio-only replay of the call will also be accessible through September 2, 2026, by dialing the following numbers: USA/Canada Toll-Free: 1-855-669-9658International Toll: 1-412-317-0088Replay Access Code: 8351751 Key Definitions Store-level operating profit represents revenue less operational costs incurred at the store level, comprising salary-based expense, raw materials and consumables cost, depreciation of right-of-use assets, depreciation of plant and equipment, amortization of intangible assets, variable lease rental payment and short-term rental expenses, utilities expenses, advertising and promotion expenses, store operating and maintenance expenses and other expenses. Store-level operating profit margin is calculated by dividing store-level operating profit by revenue for the same period. Store-level EBITDA is defined as store-level operating profit for the period and adding back depreciation of plant and equipment and amortization of intangible assets in store-level. Store-level EBITDA margin is calculated by dividing Store-level EBITDA by revenue for the same period. Adjusted EBITDA is defined as Adjusted Net Profit for the period and adding back depreciation and amortization (excluding depreciation of right-of-use assets), income tax expense and interest income and expenses, net. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the same period. Adjusted Net Profit is defined as profit for the period and adding back share-based compensation. Adjusted Net Profit margin is calculated by dividing Adjusted Net Profit by revenue for the same period. Non-IFRS Measures To supplement the Group's consolidated financial statements that are presented in accordance with the International Financial Reporting Standards ("IFRS"), the Group also use Adjusted Net Profit (non-IFRS measure), Adjusted Net Profit margin (non-IFRS measure), Adjusted EBITDA (non-IFRS measure), Adjusted EBITDA margin (non-IFRS measure), Store-level EBITDA (non-IFRS measure) and Store-level EBITDA margin (non-IFRS measure) as additional financial measures, which are not required by, or presented in accordance with, IFRS. The Group believes that these non-IFRS measures facilitate comparisons of operating performance from period to period and company to company. The Group believes that these measures provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as they help our management. However, our presentation of Adjusted Net Profit (non-IFRS measure), Adjusted Net Profit margin (non-IFRS measure), Adjusted EBITDA (non-IFRS measure), Adjusted EBITDA margin (non-IFRS measure), Store-level EBITDA (non-IFRS measure) and Store-level EBITDA margin (non-IFRS measure) may not be comparable to similarly titled measures presented by other companies. The use of such non-IFRS measures has limitations as an analytical tool, and you should not consider them in isolation from, or as substitute for analysis of, our results of operations or financial condition as reported under IFRS. Forward-Looking Statements Certain statements in this document and/or the results announcement of the Company for the six months ended June 30, 2026 are forward-looking statements that are, by their nature, subject to significant risks and uncertainties. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events, or performance (often, but not always, through the use of words or phrases such as "will", "expect", "anticipate", "estimate", "believe", "going forward", "ought to", "may", "seek", "should", "intend", "plan", "projection", "could", "vision", "goals", "aim", "aspire", "objective", "target", "schedules", and "outlook") are not historical facts, are forward-looking and may involve estimates and assumptions and are subject to risks (including but not limited to the risk factors detailed in this document and/or the results announcement of the Company for the six months ended June 30, 2026), uncertainties and other factors some of which are beyond the Company's control. Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company's forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to the Company about the businesses that it operates. The risks, uncertainties and other factors, many of which are beyond the Company's control, that could influence actual results include, but are not limited to: the Company's operations and business prospects; its business and operating strategies and ability to implement such strategies; its ability to develop and manage its operations and business; its ability to control costs and expenses; its ability to identify and satisfy customer demands and preferences; the actions and developments of its competitors; general economic, political and business conditions in the markets in which it operates; and changes to regulatory and operating conditions in the industry and geographical markets in which it operates. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited or under applicable law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. Since actual results or outcomes could differ materially from those expressed in any forward-looking statements, the Company's shareholders and potential investors are advised not to place undue reliance on the forward-looking statements and to exercise caution in dealing in securities in the Company. About DPC Dash – Domino's Pizza China DPC Dash is Domino's Pizza's exclusive master franchisee in the Chinese Mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China. Domino's Pizza, Inc., DPC Dash's global franchisor, is one of the most widely-recognized global consumer brands and the world's largest pizza company. Led by a seasoned and visionary management team, DPC Dash is a market leader that differentiates from competitors with, among others, a continually innovated and localized pizza-focused menu, unique expertise and leadership in delivery, technology focus and scalable and replicable store economic model. As of June 30, 2026, DPC Dash operated 1,550 stores in 75 cities in the Chinese Mainland. For more information, please visit: www.dpcdash.comFor official company announcements, please visit: www.hkexnews.hk ContactsInvestor Relations:DPC Dash [email protected] Christensen [email protected] Media Relations:Christensen [email protected] View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/dpc-dash-ltd-announces-2026-interim-financial-results-302860479.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record full-year net sales and operating income, marking the fourth consecutive year of top-line growth despite a challenging operating environment. Retail segment performance was driven by the successful acquisition of Bachan's and continued momentum in specialty bakery, specifically Texas Roadhouse dinner rolls which grew 28.1% in the quarter. Gross margin expansion for the 12th consecutive quarter was attributed to a multi-year network restructuring, including the sale of the Milpitas facility and optimization of the Horse Cave and College Park plants. Foodservice stability was maintained through strategic partnerships with high-growth national QSR chains like Chick-fil-A, Domino's, and Taco Bell, offsetting declines in smaller accounts. Management identified the salad dressing category as a current soft spot, exacerbated by broader market trends and the recent Cyclospora outbreak affecting produce-adjacent products. Pricing actions implemented in the fiscal first quarter are designed to neutralize moderate commodity inflation, particularly in soybean oil, while maintaining competitive positioning. Projecting mid-single-digit revenue and bottom-line growth for FY27, heavily supported by the full-year contribution and innovation pipeline of the Bachan's brand. Anticipating a 250-basis-point net sales headwind in Q1 FY27 due to the Cyclospora outbreak, with recovery modeled after the 2018 outbreak's four-month 'half-life' trajectory. Forecasting 100 basis points of consolidated gross margin expansion, split equally between Bachan's accretion and ongoing productivity initiatives. Capital expenditure of $90 million is primarily allocated to scaling the College Park facility to support increased manufacturing capacity for Chick-fil-A products. Strategic focus remains on the 'three pillars': accelerating core growth, simplifying the supply chain to expand margins, and targeted M&A or licensing. Recorded an $18.5 million gain from the sale of the closed Milpitas, California manufacturing facility, which significantly impacted reported operating income and tax rates. The Bachan's acquisition added approximately $200 million in long-term debt with an effective interest rate of 4.8% as of June 30. Discontinuation of a temporary supply agreement (TSA) created a 260-basis-point unfavorable impact on reported revenue comparisons. Management flagged a 10-15% expected increase in SG&A for FY27, almost entirely driven by the integration and marketing support for the Bachan's brand. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management utilizes a combination of long-term hedges and recent pricing actions to protect against the 40% year-to-date increase in soybean oil costs. While 5% commodity inflation creates a 50-basis-point dilutive headwind, it is being fully offset by internal cost-savings programs and the higher-margin Bachan's mix. Sales are expected to exceed $100 million in FY27, driven by expanding household penetration from its current 6% and moving into the $3.4 billion mayonnaise category. New product launches, including a Japanese Mayo and a Wing Sauce developed with Marzetti's culinary team, are scheduled for retail resets in the second half of the fiscal year. Texas Roadhouse rolls reached $58 million in annual sales with only 2.5% household penetration, suggesting significant runway to reach the $100 million target. Management is exploring non-restaurant licensing opportunities to diversify the portfolio beyond existing restaurant brand partnerships. The outbreak caused a temporary 30% dip in lettuce sales and a corresponding 11-15% drop in dressing volumes during late July. Recovery is already visible in August data, and management expects the impact to dissipate over a four-month period based on historical media-driven outbreak cycles.

A month has gone by since the last earnings report for Domino's Pizza (DPZ). Shares have added about 3% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Domino's Pizza due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Domino's reported second-quarter fiscal 2026 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines increased on a year-over-year basis. The company reported meaningful second-quarter order growth across both delivery and carryout channels despite persistent consumer demand pressures in the broader U.S. quick-service restaurant industry. Sustained order expansion remains a central component of Domino’s long-term growth framework, supported by new customer acquisition, greater loyalty program participation, increased supply chain throughput and continued store development. The company also cited its scale and competitive positioning as structural advantages that could support additional market-share gains and long-term shareholder value creation. Domino's reported second-quarter 2026 earnings of $4.07 per share, missing the Zacks Consensus Estimate of $4.11 by 1%. However, the bottom line increased 6.8% from $3.81 reported in the year-ago quarter. Quarterly revenues of $1.19 billion surpassed the consensus estimate of $1.17 billion by 2.1% and rose 4.3% year over year. Higher supply chain revenues, franchise royalties and advertising revenues supported growth, while U.S. same-store sales increased 0.1% year over year. Supply chain revenues increased to $731.7 million from $687.1 million reported in the prior-year quarter. The improvement reflected higher-order volumes and a 2.2% increase in food basket pricing. Our estimate for the metric was $749.9 million.In the second quarter, U.S. franchise royalties and fees rose to $164.2 million compared with $156.3 million reported in the prior-year quarter. Our estimate for the metric was $140.7 million.International franchise royalties and fees advanced to $81.8 million from $77.2 million, supported by net store growth and a $1.1 million favorable foreign currency impact. Our estimate for the metric was $82.8 million.U.S. franchise advertising revenues increased to $134.9 million from $132.2 million. Our estimate for the metric was $119.1 million. Global retail sales increased 3% year over year, excluding foreign currency movements. U.S. retail sales rose 1.9%, while international retail sales increased 4.1% on a constant-currency basis.Comparable sales trends were more subdued. U.S. same-store sales edged up 0.1% compared with 3.4% growth a year earlier. Company-owned store comps increased 2.1% year over year, while franchise store comps were flat. International same-store sales declined 0.1% against a 2.4% increase reported in the prior-year quarter. In the second quarter, Gross margin dollars came in at $478.2 million compared with $461 million reported in the prior-year quarter. However, gross margin as a percentage of revenues contracted 30 basis points year over year to 40%. Our estimate for the metric was 39%.Supply chain gross margin expanded 20 basis points year over year to 12%, aided by procurement productivity. The benefit was partly offset by higher food basket costs. General and administrative expenses came in at $115.4 million compared with $107.6 million reported in the prior-year quarter. In the second quarter, income from operations increased 3.1% year over year to $232 million. Excluding the favorable currency impact on international franchise royalties, operating income rose 2.6%, driven by franchise royalty growth and higher supply chain gross profit. Our estimate for the metric was $242.1 million.Net income advanced 3.6% year over year to $135.8 million. Results also benefited from a favorable $3.6 million change in pre-tax unrealized and realized losses tied to the company’s investment in DPC Dash. Domino’s posted global net store growth of 209 during the quarter. The company added 26 net stores in the United States and 183 internationally, bringing its worldwide store count to 22,531.The U.S. system ended the period with 7,231 locations, while the international network reached 15,300 stores. Over the trailing four quarters, net store growth totaled 995, including 170 domestic and 825 international additions. Net cash provided by operating activities totaled $352.6 million during the first two quarters of 2026, down from $366.9 million in the comparable 2025 period. Capital expenditures increased to $39 million from $35.2 million reported in the prior-year period.Free cash flow declined 5.5% year over year to $313.6 million. The decrease reflected changes in operating assets and liabilities, along with the timing and amount of advertising-related payments. Cash and cash equivalents stood at $164.8 million as of June 14, 2026. Domino’s repurchased 443,917 shares for $156.2 million during the quarter. The company had $1.23 billion remaining under its share repurchase authorization at quarter-end.The leverage ratio improved to 4.3 times from 4.7 times a year earlier. Following the quarter, the board declared a quarterly dividend of $1.99 per share, payable Sept. 30, 2026, to its shareholders of record as of Sept. 15. It turns out, fresh estimates have trended downward during the past month. Currently, Domino's Pizza has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Domino's Pizza has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Domino's (NASDAQ: DPZ) at roughly 20 times earnings is not just a little cheaper than usual. Domino's is trading more than a third below its typical valuation over the past decade, a level the stock rarely touched even during pizza fatigue or delivery wars. There are really only two explanations for why a brand this strong is suddenly this cheap. First, investors are scared that the GLP‑1 weight loss drug boom and sluggish traffic mean the Domino's growth story might be structurally broken. Last year, analysts even marked the ticker as a sell due to the rising popularity of weight loss drugs. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Over the last year, Domino's results have looked fine at the top line but tired underneath. Revenue is still growing in the low single digits, and the company continues to add stores, with about 180 net openings in Q1 and more than 200 in Q2, pushing the global footprint above 22,000 locations. Yet U.S. same-store sales have barely moved, up 0.9% in Q1 and just 0.1% in Q2, and international comps have drifted slightly negative once you strip out foreign exchange. On paper, that is still growth. In sentiment, it looks like a chain that is working harder for not much more pizza. Layer on the GLP‑1 story, and you can see why the market is jumpy. Analysts now expect tens of millions of Americans to be on drugs like Wegovy and Zepbound by 2030, with studies already showing real drops in calorie intake, sugar, and processed carbs. Restaurant data suggests GLP‑1 users eat out less, especially for high-calorie categories, and forecast models call for tens of billions of dollars of food and beverage sales to disappear as adoption rises. Domino's CEO has said the chain has not yet seen a measurable GLP‑1 impact, but markets are forward-looking and are starting to price in the possibility that "late-night pizza because I feel like it" becomes a smaller habit. Put these two things together, and the current valuation makes more emotional sense. Investors are not doubting Domino's ability to run a franchise system or manage costs. They are questioning whether the category can still deliver the kind of steady mid-single-digit comp growth that once supported a 30x earnings multiple. If you believe GLP‑1 adoption and health habits will cap how much pizza people eat, a lower multiple feels rational. If you believe Domino's will adapt with value offers, menu tweaks, and global expansion while GLP‑1 impact stays modest, then today's pricing looks more like a fear discount on a still-powerful brand. Before you buy stock in Domino's Pizza, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Domino's Pizza wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 18, 2026. Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Domino's Pizza. The Motley Fool has a disclosure policy. Domino's Pizza Trades at Just 20.1x Times Earnings -- Its Lowest Valuation in Nearly a Decade. There's Only 2 Explanations for Why Domino's Is This Cheap. was originally published by The Motley Fool

HONG KONG, Aug. 14, 2026 /PRNewswire/ -- DPC Dash Ltd ("DPC Dash" or the "Company") (1405.HK), Domino's Pizza's exclusive master franchisee in the Chinese Mainland, the Hong Kong Special Administrative Region of China, and the Macau Special Administrative Region of China, will release its unaudited consolidated interim results for the six months ended June 30, 2026 on Wednesday, August 26, 2026. The Company will hold a conference call on Wednesday, August 26, 2026, at 7:00 pm Hong Kong Time (or Wednesday, August 26, 2026, at 7:00 am Eastern Time) to discuss the financial results. A live audio-only webcast of the call can be accessed directly at https://event.choruscall.com/mediaframe/webcast.html?webcastid=MpPkCWtq To participate by phone, participants are strongly encouraged to pre-register for the conference call, by using the link provided below. Upon registering, each participant will receive a set of participant dial-in numbers, the event passcode, and a unique access PIN, which can be used to join the conference call. Pre-registration Link: https://dpregister.com/sreg/10211056/1049e3b17b0 An audio-only replay of the call will also be accessible through September 2, 2026, by dialing the following numbers: Additionally, the earnings release and presentation slides for this conference call will be available on the Company's Investor Relations website www.dpcdash.com About DPC Dash Ltd DPC Dash is Domino's Pizza's exclusive master franchisee in the Chinese Mainland, the Hong Kong Special Administrative Region of China and the Macau Special Administrative Region of China. Domino's Pizza, Inc., DPC Dash's global franchisor, is one of the most widely-recognized global consumer brands and the world's largest pizza company. Led by a seasoned and visionary management team, DPC Dash is a market leader that differentiates from competitors with, among others, a continually innovated and localized pizza-focused menu, unique expertise and leadership in delivery, technology focus and scalable and replicable store economic model. As of June 30, 2026, DPC Dash operates 1,550 stores in 75 cities in the Chinese Mainland. For more information, please visit: www.dpcdash.com For official company announcements, please visit: www.hkexnews.hk Contacts Investor Relations: DPC Dash [email protected] [email protected] Media Relations: Christensen [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/dpc-dash-ltd-1405hk-to-announce-2026-interim-financial-results-on-august-26-2026-302851670.html

This article first appeared on GuruFocus. Fiscal Period: Q1 FY 2027 (quarter ended June 2026). Revenue: Not explicitly disclosed in the provided transcript excerpt. Net Income: Not explicitly disclosed in the provided transcript excerpt. Margins: Not explicitly disclosed in the provided transcript excerpt. Same-Store Sales: Not explicitly disclosed in the provided transcript excerpt. Store Locations: Not explicitly disclosed in the provided transcript excerpt. Warning! GuruFocus has detected 4 Warning Signs with BOM:533155. Is BOM:533155 fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Popeyes has become a strong second growth engine with 45% LFL growth, driven by superior product, brand building, and strong store execution. Management is confident in achieving 5-7% LFL growth for Domino's, with Q2 expected to be better than Q1. Gross margins remained healthy at 75.5% despite cost headwinds, supported by pricing power and supply chain efficiencies. The company is on track to deliver its 200 basis points EBITDA margin expansion target, with emerging brands ahead of plan. Free cash flow has turned positive and is expected to improve further as CapEx remains within the INR750-900 crore range while operating cash flows grow. Domino's LFL growth was only 2.5% in Q1, impacted by a high base and cost headwinds from LPG, labor, and commodity inflation. Dine-in and takeaway channel continues to face headwinds, with solo occasions under INR250 seeing the maximum drop. The reduction in minimum order value to INR99 has increased delivery costs per order, creating an EBITDA headwind. Commodity costs, including cheese, oil, and chicken, remain volatile and may lead to further inflation. Popeyes is still not EBITDA profitable, with high marketing costs and a need to scale to achieve profitability. Q: What is driving the acceleration in Popeyes' like-for-like (LFL) growth from 9.2% in Q1 FY2026 to 45% in Q1 FY2027, and when will it normalize?A: Sameer Khetarpal (CEO & MD) attributed the acceleration to three structural factors: a superior product achieved through a better marination process and fresh chicken, supported by Jubilant FoodWorks' strong supply chain; assiduous brand building through flavor innovation, such as launching six flavors of chicken wings; and excellent execution on store openings over the last three to four quarters. He stated that the brand's average daily sales (ADS) are still behind the market leader and that the company aims to surpass them, viewing the 45% growth rate as sustainable for the foreseeable future rather than expecting it to normalize to a specific lower level. Q: Can you elaborate on the strategy to revive the dine-in channel, the level of investment, and what sustainable growth you expect from this format?A: Sameer Khetarpal (CEO & MD) detailed a three-pillar playbook. First, improving the basics of service, including speed, product quality, accuracy, and store experience, which are tracked via mystery audits. Second, driving traffic through specific offers like "Best Deals Ever Wednesday" and partnerships with payment players and aggregators. Third, developing a differentiated menu focused on solo occasions with ticket sizes under INR250, which have seen the most significant drop due to aggregators lowering minimum order values. He noted early success in reversing the trend on Wednesdays and stated the first goal is to stop the decline in dine-in LFL, which would allow the company to far exceed its overall LFL guidance. Q: Given the 2.5% LFL growth in Q1 FY2027, do you expect to achieve the 5% to 7% LFL growth guidance for the rest of the year?A: Sameer Khetarpal (CEO & MD) affirmed this is the endeavor, noting that the combined LFL growth of Q1 FY2026 (11.6%) and Q1 FY2027 (2.5%) averages over 7%. He stated that the company is building a business with 5% to 7% growth as bases correct, and expects Q2 FY2027 to be better than Q1. Q: What is the current status of the margin outlook, and are you on track to deliver the 200 basis points EBITDA margin expansion target?A: Sameer Khetarpal (CEO & MD) stated that the 100 basis points target from emerging brands (Popeyes) is ahead of track, while the Domino's portion faces headwinds from LPG, wage inflation, and raw material costs. He confirmed the company has headroom for calibrated price increases if needed. Suman Hegde (CFO) added that the company is on course to meet the guidance, having mitigated a 200 basis points cost headwind down to a 20 basis points impact in Q1 through price increases and efficiency measures. Q: How are you viewing the overall demand environment and consumer sentiment?A: Sameer Khetarpal (CEO & MD) stated that there is enough demand in the market, noting that customers are eating out and wanting more protein. He pointed to positive indicators like car sales and GST collections. He emphasized that where the company has executed well, it has grown much faster than the market, and he does not see demand as an issue. Q: Can you provide more color on the cost inflation impact and the price increases taken in Q1 FY2027?A: Suman Hegde (CFO) explained that the company had indicated a 200 basis points headwind from costs, including 120 basis points from LPG, labor costs due to new labor codes and minimum wage hikes in 14-15 states, and petrol/diesel costs. They had already taken pricing of about 100-110 basis points. Through further price increases and efficiency improvements, they restricted the headwind to just 20 basis points in Q1. She noted that commodities like cheese and oil remain in flux, with potential for more inflation. Q: What has been the impact of lowering the minimum order value (MOV) to INR99 on the business?A: Sameer Khetarpal (CEO & MD) explained that this was a lagging action taken to match aggregators who had lowered their MOVs. While it creates a level playing field and allows the Domino's app to remain competitive, it comes at a lower average order value. This means the company is investing more per order to deliver to customers, creating a headwind from an EBITDA standpoint. He noted that volume needs to grow materially higher for this to flow into EBITDA. Q: What is the CapEx guidance for FY2027, and how is capital being allocated?A: Suman Hegde (CFO) reiterated the full-year CapEx guidance of INR750-900 crores. She noted that the profile of capital is now more indexed toward new store expansion for Domino's and Popeyes, with supply chain investments materially down. Sameer Khetarpal (CEO & MD) added that the company is focused on free cash flow maximization through dynamic capital allocation, having exited the coffee business (Dunkin') and completed major supply chain investments, which are now sufficient for up to 5,000 stores. Q: How do you contrast the growth dynamics and customer cohorts between Popeyes and Domino's?A: Sameer Khetarpal (CEO & MD) explained that the two brands are at very different stages. Domino's is a large, penetrated QSR brand with massive headroom to grow category penetration, as only 6-7 million Indians eat pizza monthly. Popeyes is minuscule compared to its incumbent competitors, so its growth looks stronger. He noted that Popeyes currently has a higher dine-in salience due to its mall-focused locations, representing an untapped opportunity for future delivery growth. Q: Can you share the average order value (AOV) for Domino's and Popeyes?A: Sameer Khetarpal (CEO & MD) declined to share absolute numbers but stated that chicken average order values are typically higher than pizza. He confirmed that Domino's has the highest AOV in its category, while Popeyes has room to grow to reach that level. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Domino's Pizza Group plc? Here are five stocks we like better. Strong first-half trading: Domino’s reported positive like-for-like sales in every month, with growth balanced between pizza and chicken. Volume increased by roughly 2%, while inflation-related pricing contributed about 3%, and management maintained confidence in fiscal 2026 expectations. Focus on existing-store profitability: Franchisee economics are improving, but higher labor and operating costs have made new-store openings less attractive. Domino’s will prioritize sales growth, returns on capital and performance at its more than 1,400 existing stores over meeting expansion targets. Investment in efficiency and customer engagement: Warehouse and dough-production automation should deliver greater supply-chain benefits from the second half onward, while a new personalized loyalty program is planned for year-end. Capital allocation will emphasize organic investment, an inflation-linked dividend and debt reduction, with leverage targeted at 1.5 times within two to three years. Domino's Pizza Group (LON:DOM) said it delivered a strong first half, with positive like-for-like sales in every month of the year and continued confidence in its fiscal 2026 expectations, as management highlighted growth from pizza, chicken, loyalty initiatives and supply-chain efficiencies. The company said its first-half performance received a modest tailwind from the World Cup, reflecting Domino’s role in group gatherings and football-related occasions. However, management said the sporting event was not material to reported sales growth because like-for-like sales had remained positive throughout the year. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Sales growth was balanced between pizza and chicken, following the February launch of the CHICK DIP chicken offering. Management said chicken had not cannibalized pizza demand; instead, many chicken orders included incremental pizzas, increasing basket sizes and average tickets. Andrew Rennie, Domino’s former CEO, said order growth indicated that the company was selling more products rather than relying solely on pricing. He described approximately 2% growth driven by volume and roughly 3% inflation-related price growth. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Management said franchisee profitability was improving compared with 2024 and 2025, supported by higher sales and a shared strategy focused on strengthening the core business. The company said franchisees were aligned around “growing the pie,” rather than pursuing growth solely through additional store openings. Domino’s has more than 1,400 stores open and has opened 11 stores year to date. However, management said new-store economics have become more challenging, particularly because franchisees are facing higher labor costs, taxes and other operating expenses. → Why Rare Earth Processing Could Be the Real 2027 Opportunity The company said it would not pressure franchisees to open locations simply to meet a store-count target. Rennie said new openings should be viewed as “the icing rather than the cake,” with growth expected to come primarily from better performance at existing stores, improved returns on capital and stronger franchisee economics. Management also said franchisee performance varies more by region than by franchisee size. London remains a particularly competitive market, and Domino’s said aggregator platforms can be important in reaching consumers in areas where customers are more likely to use those services. Domino’s said it is pursuing several supply-chain projects aimed at reducing labor costs and improving distribution efficiency. These include warehouse automation, dough-production automation and warehouse-packing initiatives. At one site, an upgrade is expected to eliminate a full afternoon shift. The opening of the company’s SCC5 supply-chain center has also enabled delivery routes previously served from Milton Keynes to be rerouted, allowing some Southwest deliveries to be completed by one driver instead of two. Management said a number of full-time-equivalent roles had already been removed and that benefits should begin to flow through in the second half. Rennie said first-half supply-chain margins were slightly behind because of one-off costs related to automation, while a greater share of the benefits is expected in 2027 and 2028. On broader overheads, Rennie said costs remain under constant review, though he did not see “a swathe of overhead” available for removal. He said any efficiency efforts would need to be balanced against investment in technology, artificial intelligence and growth initiatives. Domino’s plans to launch a fully updated loyalty program toward the end of the year through third-party provider Open Loyalty. The existing program has 2.2 million customers, while management said the company has a broader customer base of about 14 million that represents a substantial opportunity for recruitment and increased ordering frequency. The new platform is expected to offer deeper personalization, the ability to reward different customer behaviors and the capability to recruit prospective customers directly into the loyalty scheme. The current program is invitation-only and has limited functionality, based largely on a stamps-for-a-free-pizza model. Management said the new scheme has been modeled jointly with franchisees and includes costs for both Domino’s and its franchise partners. Those costs are already included in company guidance, according to Rennie. Domino’s said it continues to invest around £8 million annually in its e-commerce platform. Management said the loyalty investment would provide richer customer data that can be used to personalize app experiences and marketing, without requiring significant additional investment specifically for personalization. The company said restrictions on advertising high-fat, salt and sugar products before 9 p.m. had not produced a meaningful negative impact on sales or order counts. It has redirected media spending to compliant channels and uses artificial intelligence tools to support media buying and evaluate returns on marketing investment. Management said customer awareness of its chicken proposition was already at a high level, although it was too early to provide a long-term assessment following the February launch. Among customers who had tried the product, roughly 80% were described as highly satisfied. The company said chicken remains an immature proposition with further opportunities in flavors, dips, coatings and complementary side dishes. Management said it was not planning to expand rapidly into unrelated menu categories, preferring to develop chicken further while exploring healthier and lower-calorie side options. Domino’s operates on two aggregator platforms and said both are generating similar levels of incremental demand. While the company does not disclose the order mix from aggregators, management said the channel was not growing to a level that caused concern and was attracting somewhat younger and more affluent customers. Higher-frequency “champion” customers continue to order directly through Domino’s app, management said. Rennie said capital allocation would prioritize organic investment, maintenance capital expenditure of around £20 million subject to a 20% hurdle rate, and maintaining the dividend in line with inflation. Remaining cash would be used to reduce debt and leverage. He said the company expects leverage to move toward 1.5 times within two to three years, after allowing for a temporary increase to 2.3 times related to investment in the supply-chain center. Domino’s is also evaluating the size and duration of a refinancing of a £200 million U.S. private placement tranche, with Rennie indicating the replacement amount would likely be below £200 million. Domino's Pizza is the UK's leading pizza brand and a major player in the Republic of Ireland. We are part of the global Domino's system, the biggest pizza delivery operator in the world. We hold the exclusive master franchise rights in the UK & Ireland under a long term agreement with Domino's Pizza International Franchising Inc, the international arm of Domino's Pizza Inc, which owns the Domino's brand. Our core business is the UK & Ireland, where we have a clear number one market share. We operate a world-class supply chain, making fresh dough and acting as a scale and expert wholesaler of other food and non-food supplies to our franchisees. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Domino's Pizza Group H1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Yum! Brands, Inc.? Here are five stocks we like better. Yum! Brands reported solid Q2 growth excluding Pizza Hut, with 7% system sales growth, 4% same-store sales growth, 8% core operating-profit growth and digital sales reaching 61% of sales. Pizza Hut’s sale to Yum China and LongRange Capital is expected to close in August for $2.7 billion, generating approximately $2.3 billion in net proceeds that Yum! plans to use partly for debt reduction and largely for potential share repurchases. Taco Bell’s U.S. sales were temporarily hurt by a food-safety issue, but management said sales have begun recovering; meanwhile, KFC delivered 6% system sales growth and remains a major global expansion driver, supported by a potential 20,000-unit opportunity in underpenetrated markets. Domino's Stock Slides to 52-Week Low as Investors Digest CEO Change Yum! Brands (NYSE:YUM) reported second-quarter growth across its operations excluding Pizza Hut, while management addressed a recent U.S. food-safety issue that has temporarily affected Taco Bell sales and outlined plans to sell Pizza Hut in separate transactions. Chief Executive Officer Chris Turner said consumer safety remains the company’s top priority and that Yum!’s teams have acted “quickly and transparently” in response to the industry-wide issue. He said Taco Bell has experienced a meaningful near-term sales impact but expects the effect to be temporary. → Microsoft Just Flipped the AI Spending Narrative Overnight Top Consumer Discretionary Brands Add Buyback Capacity Amid Weakness Excluding Pizza Hut, Yum! reported 7% system sales growth in the second quarter, supported by 6% unit growth and 4% same-store sales growth. Core operating profit increased 8%, according to Chief Financial Officer Ranjith Roy. Digital sales excluding Pizza Hut approached $9 billion during the quarter and represented 61% of sales. Yum! completed its strategic review of Pizza Hut in June and entered separate agreements to sell the business to Yum China and LongRange Capital. The transactions are valued at $2.7 billion in aggregate, with the potential for an additional $75 million earn-out from LongRange Capital by 2030. → 2 Unique Space ETFs That Could Upend the Industry MarketBeat Week in Review – 06/01 - 06/05 Roy said Yum! expects both transactions to close in August. Afterward, Yum! will provide transition services to Pizza Hut outside China, including enterprise technology and finance support. Most of those services are expected to phase out during 2027. The company expects to receive about $2.3 billion in net proceeds from the transactions. Yum! plans to use a portion to pay down its revolver balance and expects to reserve most of the remaining proceeds for share repurchases, subject to market conditions. Yum! repurchased approximately $670 million of stock during the first half of 2026. → MarketBeat Week in Review – 07/27- 07/31 Turner said the sale would create “a stronger Yum! and a stronger Pizza Hut” and allow Yum! to focus on its remaining brands and priorities, including consumer relevance, restaurant economics and digital capabilities. KFC, which represented 58% of Yum!’s divisional operating profit excluding Pizza Hut, delivered 6% system sales growth in the quarter. The gain reflected 7% unit growth and 2% same-store sales growth. KFC opened 660 gross new stores across 55 markets during the quarter. Roy said the brand is expected to have its best development year ever, supported by franchisee confidence and opportunities in both established and underpenetrated markets. The Middle East reached 1,500 KFC restaurants during the quarter. Management highlighted growth opportunities in India, Southeast Asia, West Africa and Brazil, which together represent more than one-third of the global population. KFC’s restaurant density in those markets is approximately one-fifth of that in its top 25 markets, representing what Roy described as a 20,000-unit opportunity. KFC is also pursuing a global strategy centered on boneless chicken, sauces, updated restaurant experiences and a refreshed visual identity. Turner said the brand aims to bring core elements of the strategy to its top 20 markets by the end of 2027. In the United Kingdom, KFC’s Pickle Mania limited-time offering helped drive 8% same-store sales growth in the second quarter, while Asia delivered 6% same-store sales growth. Turner said KFC’s long-term objective is to improve same-store sales growth and average unit volumes. He said the company has seen early evidence of progress in markets including the United Kingdom, Korea, Japan and Brazil. Taco Bell generated 7% same-store sales growth in the second quarter, outperforming the quick-service restaurant industry for the ninth consecutive quarter, according to Turner. Its digital sales mix reached 47%, up five percentage points from a year earlier, with more than half of the growth coming from first-party loyalty channels. More recently, Taco Bell’s U.S. same-store sales were down 2% quarter-to-date through July 27, Roy said. He noted that the figure included a period of normal growth before the food-safety issue became prominent and that the largest sales impact occurred over the weekend of July 18. Roy said sales declines had moderated materially since then. Based on the four most recent days discussed on the call, Taco Bell had recovered about halfway to prior-year sales levels. He said the company expects Taco Bell’s third-quarter equity restaurant-level margins to range from 19% to 21%, reflecting lower sales volumes, promotional investments and a higher concentration of company-operated restaurants in more affected markets. Turner said Taco Bell’s social-sentiment measures had returned to pre-issue levels of positivity and that the company has seen no decline in measures of brand love. He pointed to the brand’s recent promotional activity, including $1 Enchirito and Mexican Pizza loyalty offers, as examples of efforts to reengage customers. The Mexican Pizza promotion produced the highest app traffic, app transactions and loyalty acquisitions of any Taco Bell Tuesday drop, he said. Taco Bell plans to introduce a redesigned app during the third quarter, with more personalized features, improved menu discovery and expanded order customization. Internationally, the brand recently launched Baja Blast in the United Kingdom, where the first week of the launch helped lift same-store sales by 14%, Turner said. Yum! continues to expand Byte, its proprietary AI-enabled technology platform, across its restaurant system. Roy said Byte allows restaurant operators to manage menus, pricing, promotions and store hours through a single platform across ordering channels. Taco Bell has deployed Voice AI capabilities to more than 900 U.S. restaurants, with additional franchisees adopting the technology. Yum! ultimately aims for Byte to support the vast majority of system sales outside China. The company said more than 400 specialized AI agents have been created internally to address business tasks, while daily usage of AI productivity tools by corporate employees has increased more than 50% year over year. Yum!’s Collider agency has also developed an innovation database containing information on more than 7,000 food, beverage and marketing concepts across 35 countries. Looking ahead, management said it remains focused on its “Raise the B.A.R.” strategy: battling for the future consumer, accelerating restaurant unit economics and expanding the company’s technology and digital capabilities. Yum! Brands, Inc (NYSE: YUM) is a global quick-service restaurant company that develops, operates and franchises a portfolio of well-known restaurant brands. The company's principal brands are KFC, Pizza Hut and Taco Bell, each focused on distinct product categories—KFC on fried chicken and related menu items, Pizza Hut on pizza and complementary offerings, and Taco Bell on Mexican-inspired quick-service food. Yum! is headquartered in Louisville, Kentucky and was formed as Tricon Global Restaurants in 1997 when PepsiCo spun off its restaurant businesses, later adopting the Yum! Brands name. The company's operating model centers on brand development, system growth and franchising; a large portion of its restaurants are operated by independent franchisees, and Yum! generates revenue through franchise royalties and fees in addition to sales from company-operated locations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Yum! Brands Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Domino’s Pizza (DPZ) stock is up 22% over the last month even as the company’s second-quarter 2026 performance was mixed at best. In an article last month, I noted that DPZ stock was a buy near its 52-week lows. With shares of Domino’s up sharply since then, let’s explore whether the stock is still a buy or if investors would be better off selling it here. To fully consider DPZ stock, let’s first analyze the Q2 earnings report. Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Domino's Pizza reported revenue of $1.19 billion for the quarter, up 4.3% year-over-year (YOY) and slightly ahead of Street estimates. However, U.S. same-store sales data was disappointing, with the metric rising only 0.1% — the lowest growth in five quarters, and well below the 0.62% that analysts expected. The company blamed tepid same-store sales on the fall in average ticket price during the quarter amid somber customer reception to its premium series, including the new Slice Sauce. International same-store sales also disappointed, falling 0.1% in constant currency terms versus analysts' expected growth of 0.5%. The supply-chain business, which distributes equipment and ingredients to both company-owned and franchised stores, was a bright spot. Supply-chain revenue rose 6.5%, driven by higher food prices and higher order volumes. Meanwhile, EPS rose 6.8% to $4.07 but fell short of the $4.11 expected by analysts. Usually, such a set of numbers wouldn't be associated with a post-earnings rally. However, there was so much pessimism toward DPZ stock heading into the Q2 confessional that even an otherwise mixed earnings report cheered investors. Domino’s offered upbeat commentary on the Q2 earnings call, particularly on order count, which outgoing CEO Russell Weiner stressed is a key metric to watch as it drives long-term growth. While Weiner refrained from providing the order count number, he said it was “up meaningfully in total and individually in our delivery and carryout businesses.” “This means that while other restaurants were fighting for orders, millions of new customers came to Domino's,” the CEO added. The company also teased a new product that Weiner said was his “favorite pizza, full stop.” Despite multiple analyst questions about the new product, management kept details scarce, which is understandable as it would want to keep them reserved for the actual launch. The company, however, said that the new product would “address an unmet consumer need, but this time with a pizza that is unique to Domino's.” Domino’s has been gradually taking market share from its competitors and has established itself as the largest pizza chain. According to Domino's, the gulf between the company and its competitors has widened and is currently the highest ever. In fact, the firm sees an opportunity to increase its market share even further. Notably, while Domino’s continues to add new stores and expects net store adds of around 175 in the U.S. and 800 internationally, some of its major rivals are on a store-closure spree amid stagnant sales and an adverse macro environment. The pizza industry is also witnessing consolidation amid merger and acquisition (M&A) activity. Yum! Brands (YUM) recently sold Pizza Hut for a total consideration of $2.7 billion, while Papa John's (PZZA) is reportedly weighing a $1.5 billion offer from Qatari royal family-backed Irth Capital Management. Domino’s Pizza is a mature business, and while the company does invest in growth, it is left with a lot of cash. The company spends this cash on share buybacks, dividends, and deleveraging its balance sheet. DPZ stock’s dividend payouts have increased at an annualized rate of nearly 20% over the last 10 years, including a 15% increase this year. The dividend yield has come off its 2026 highs amid the rally in shares, but at almost 2.5%, it is still quite healthy and around twice what an average S&P 500 Index ($SPX) constituent pays. The stock's valuation multiples have also expanded over the last month. The forward price-to-earnings (P/E) multiple is now 18.1 times. While the risk-reward is not as compelling as it was when I last covered Domino's Pizza stock, I believe more gains could be in the cards over the next year. DPZ stock could still fit into the portfolios of investors looking for high-quality dividend stocks that have a stable business and can deliver decent long-term capital appreciation. On the date of publication, Mohit Oberoi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Domino's Pizza stock has fallen 34.8% over the past five years, yet current valuation checks paint a more balanced picture, with the Discounted Cash Flow (DCF) intrinsic value estimate sitting close to the market price while earnings based multiples indicate some room for upside. Over five years the share price is down 34.8%, which means investors are looking at a stock that has already reset expectations in a meaningful way. Recent revenue growth, new store openings and a steady dividend can support the case for the current valuation, while softer same store sales trends and a CEO transition keep a question mark over how much growth the market should be willing to pay for. The broader checks show a mixed picture rather than a clear bargain or clear overvaluation, with Domino's Pizza screening as undervalued on some metrics but scoring only 4 out of 6 on value overall. The issue now is whether Domino's Pizza's current price already reflects these cross currents, or if there is still a meaningful gap between market price and intrinsic value. Find out why Domino's Pizza's -31.6% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model values Domino's Pizza by projecting future free cash flows and discounting them back to today. For Domino's Pizza, the latest twelve month free cash flow sits at about $658 million, and the model assumes these cash flows are generally growing over time rather than shrinking. Based on those assumptions, the DCF points to an intrinsic value of about $297 per share. At the current market price, the stock is roughly 7.7% above that estimate. The recent Q2 2026 update, which includes revenue growth alongside flat to slightly weaker same store sales and a pending CEO departure, helps explain why the market is not assigning a larger premium to those projected cash flows. Overall, the Discounted Cash Flow view suggests Domino's Pizza stock currently appears roughly fairly valued rather than a clear bargain or an obvious stretch. Domino's Pizza is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Domino's Pizza. P/E is a useful check for Domino's Pizza because the company is profitable and analysts focus heavily on its earnings power. The stock currently trades on a P/E of about 17.9x, compared with a Hospitality industry average of roughly 23.6x and a peer group average near 26.3x, so the market is pricing Domino's Pizza at a lower earnings multiple than many comparable stocks. On Simply Wall St's fair P/E estimate of about 20.4x, which reflects the company’s size, margins and risk profile, Domino's Pizza appears at a discount, with its current multiple sitting a few turns below that tailored benchmark. This is consistent with broader checks that suggest expectations have already cooled after softer same store sales trends and a pending CEO change, while the shares still do not appear richly priced on earnings alone. On the P/E multiple, Domino's Pizza stock appears undervalued relative to both its fair ratio and to typical Hospitality peers. See what the numbers say about this price — find out in our valuation breakdown. For Domino's Pizza's stock, Simply Wall St Narratives aim to connect the mixed valuation signals above with clear, testable assumptions about the company’s future growth, margins and earnings that would need to hold for the shares to be worth significantly more or less than today’s price. Rather than only giving a single output from a ratio or model, they outline the future that number relies on so you can watch how the real business lines up over time on the Community page. Community views on Domino's Pizza sit far apart, with one group seeing meaningful upside while another thinks the stock already prices in plenty of good news. Bull case: 22% undervalued Read the full Bull Case to see why Domino's Pizza could be undervalued Bear case: 10% overvalued Read the full Bear Case to see why Domino's Pizza could be overvalued Do you think there's more to the story for Domino's Pizza? Head over to our Community to see what others are saying! For Domino's Pizza, the Discounted Cash Flow (DCF) view points to a stock that is close to intrinsic value, while the P/E multiple suggests it is undervalued compared with peers and a tailored fair ratio. That split largely comes down to cash flow timing and capital intensity on one side, and how much future growth investors are willing to pay for on the other. With broader checks looking mixed rather than extreme, the key consideration from here is whether Domino's Pizza can sustain attractive earnings growth and same store performance through its leadership transition without relying on a richer multiple to drive returns. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DPZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]