Operations

Domino's profits fall as consumers curb spending based on rising costs

Photo: Domino's PIzza

April 27, 2026 by Mandy Wolf Detwiler — Editor, Connect Media

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Domino's Pizza Inc. reported a decline in first-quarter net income, as investment losses outweighed gains from higher U.S. sales.

The pizza chain posted net income of $139.8 million for the quarter ended March 22, 2026, a 6.6% drop from the $149.7 million reported during the same period last year. Diluted earnings per share fell to $4.13, down from $4.33.

The company attributed the profit slump primarily to a $30 million unfavorable swing in the valuation of its investment in DPC Dash Ltd, its master franchisee in China.

Consumers, already facing a weak labor market and rising gas prices, are shifting toward lower-cost and home-provided meals, causing fast-food and restaurant chains to see reduced orders and visits.

Domino's has pulled out measures to drive the consumer back in, like its $9.99 "Best Deal Ever" and its popular "Mix and Match" program. It rolled out Parmesan-stuffed crust pizza last year.

Revenue and sales performance

Total revenues rose 3.5% to $1.15 billion, driven by:

Supply chain gains: Revenues from the company's supply chain rose, largely due to a 2.6% increase in the price of the "food basket" sold to franchisees.
U.S. growth: Domestic same-store sales grew 0.9%, a reversal from the 0.5% contraction seen in Q1 2025.
International deceleration: While international retail sales grew, same-store sales in that segment (excluding currency impacts) dipped 0.4%.

Operational analysis

Operating income provided a bright spot, rising 9.6% to $230.4 million. This was bolstered by a $7.8 million gain from the sale of a fully depreciated corporate aircraft.

"Q1 2026 represented another quarter of positive order count and market share growth for Domino's in the U.S.," Russell Weiner, Domino's CEO, said in a company press release. "In an intensifying macro and competitive environment, our scale advantage and best-in-class store level profitability uniquely position Domino's in the QSR Pizza category to sustain the value and innovation customers demand. My belief that we can continue to outperform our competition and take meaningful share in 2026 and beyond remains as strong as it has ever been. This is how we will deliver long-term value for our franchisees and shareholders."

Store count and expansion

The company continued its global footprint expansion, adding a net 180 stores during the quarter.

Total global stores: 22,322
International openings: 161 net new stores
U.S. openings: 19 net new stores

Shareholder returns

Despite the dip in net income, Domino's announced an aggressive capital return strategy. The Board of Directors authorized a new $1 billion share repurchase program, adding to the existing authorization for a total of $1.29 billion.

Finance / Investment Operations

About Mandy Wolf Detwiler

Mandy Wolf Detwiler is the Pizzamarketplace.com and QSRweb.com editor for Connect Media. An award-winning journalist, Mandy brings more than 20 years’ experience covering food, people and places. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and, yes, she can tell you where to find the best pizza slices in the country.

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