Domino's Pizza, Inc. announced its second-quarter 2025 results, reporting a net income of $131.1 million, or $3.81 per diluted share. This represents a decrease of 7.7% in net income and 5.5% in diluted EPS compared to the second quarter of 2024, when net income was $142.0 million, or $4.03 per share. Analysts had anticipated higher earnings for Q2 2025, leading to an earnings miss, as stated by Alphastreet and CNBC.
Despite the decline in net income, total revenues for the quarter rose by 4.3% annually to $1.15 billion, surpassing analysts' expectations. This increase was primarily driven by higher supply chain revenues, higher U.S. franchise royalties and fees, and increased U.S. franchise advertising revenues. The company also saw global retail sales growth of 5.6% (excluding foreign currency impact) and U.S. same store sales growth of 3.4%.
Several factors contributed to the decrease in net income, including an unfavorable change of $27.4 million in pre-tax net realized and unrealized losses associated with the company's investment in DPC Dash Ltd., as well as a higher provision for income taxes, which increased by $12.1 million due to a higher effective tax rate of 22.1% in Q2 2025 (up from 15.0% in Q2 2024). Income from operations, however, increased by 14.8% to $225.0 million, mainly due to higher U.S. franchise royalties and fees, and improvements in supply chain gross margin. Free cash flow surged by 43.9% to $331.7 million. Domino's CEO, Russell Weiner, highlighted strong Q2 results, citing growth in both delivery and carryout in the U.S. and continued international expansion, as reported by CNBC and the Form 8-K filing.
