AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 19/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Paying franchisees, repeated approximately 99% renewals, a large installed international system and realized royalty growth demonstrate a valuable brand and operating system. Scale alone does not establish network effects or superior costs.
durability · 3/4 · Ten-year U.S. agreements, a ten-year renewal option and approximately 99% renewals in three successive years provide strong demonstrated persistence. International store expansion supports this assessment, while recent weak same store growth limits confidence in further strengthening.
customer dependency · 2/4 · Franchisees repeatedly renew long-duration access to the brand and pay ongoing royalties, supporting meaningful system attachment. Consumers face many competing choices; the passages do not quantify franchise switching costs or demonstrate consumer lock-in.
erosion resilience · 2/4 · Renewals, royalty growth and continued net openings show resilience. Nearly flat recent same store sales, realized expansion-related closures and deteriorating company-owned store margins offset those achievements. Generic competitive risks are not treated as realized market-share loss.
Pricing power56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Higher food basket prices demonstrate realized upstream pricing, but they also increased store food-cost pressure. Weak same store growth and lower company-owned margins temper the result. Consumer menu price realization and the division between cost pass-through and discretionary pricing are unavailable.
retention · 3/4 · Approximately 99% U.S. franchise agreement renewal rates in 2023–2025 directly demonstrate strong retention of paying franchise participants. Positive international same store sales in 2024–2025 provide indirect repeat-demand evidence, but recent stagnation limits the consumer-side conclusion. No consumer retention rate is inferred.
margin resilience · 2/4 · Supply chain gross margin improved while company-owned store gross margin fell materially. This mixed outcome shows incomplete cost absorption at the store level. Royalty revenue has no cost-of-sales component, so consolidated margin resilience cannot alone demonstrate pricing power.
contractual freedom · 2/4 · Standard agreements establish percentage-of-sales royalties and technology fees, but independent franchisees control retail pricing across approximately 99% of stores. These terms monetize sales without establishing unilateral freedom to raise royalty rates or reset existing agreements.
Predictability94
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 2.62
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.77
Financial strength30
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 11.81
- netDebtEbitGrade
- 1.65
- interestCoverageGrade
- 35.16
- currentRatioGrade
- 72.08
- Debt / FCF (x)
- 7.17
- Net debt / operating income (x)
- 4.92
- Interest coverage (x)
- 4.87
- Current ratio (x)
- 1.65
Capital allocation99
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 109.83
- 3-year average dilution (%)
- -1.63
- 3-year average SBC / revenue (%)
- 0.89
- cashConversionGrade
- 97.89
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Three-quarter 2026 operating cash flow of $520.6 million substantially exceeded $60.8 million of capital expenditure, while $308.2 million of repurchases reduced outstanding shares. However, operating cash flow declined, declared dividends added $199.2 million of commitments, and $4.89 billion of debt included $1.33 billion classified current. Capital returns coexist with meaningful refinancing exposure; repurchase value creation is unproven.
incentive alignment · 3/4 · Earned performance-linked annual incentives, approved multi-year CEO equity awards, ownership requirements and disclosed compliance demonstrate meaningful alignment. The adjusted 2023 incentive target shows committee discretion. Complete individual ownership amounts are missing, and granted awards are not treated as already vested.
execution · 2/4 · Assessed indirectly from operating outcomes: international royalty growth, continued net openings and higher third-quarter and year-to-date operating income and net income show delivery. Nearly flat same store sales, substantial store margin deterioration and lower operating cash flow make the record mixed. Operating income includes disclosed asset-sale and refranchising gains.
governance · 3/4 · Fully independent committees, a lead independent director, private independent-director sessions, annual elections and a majority voting policy provide concrete safeguards. The executive chairman and CEO are non-independent. The disclosed structure supports strong governance without establishing exceptional oversight effectiveness or assuming shareholder proposals passed.
Evidence
We are primarily a franchisor, with approximately 99% of Domino’s global stores owned and operated by our independent franchisees as of December 28, 2025.
Business: franchise ownership mix · Filed 23/02/2026
Royalties are ongoing percent-of-sales fees for use of the Domino’s® brand marks.
Business: ongoing royalties for brand marks · Filed 23/02/2026
franchisees under which the franchisee is generally granted the right to operate a store in a particular location for a term of ten years, with an ability to renew for an additional term of ten years.
Business: U.S. franchise agreement duration and renewal option · Filed 23/02/2026
We had a franchise agreement renewal rate of approximately 99% in 2025.
Business: 2025 franchise agreement renewal rate · Filed 23/02/2026
We had a franchise agreement renewal rate of approximately 99% in 2024.
Business: 2024 franchise agreement renewal rate · Filed 24/02/2025
We had a franchise agreement renewal rate of approximately 99% in 2023.
Business: 2023 franchise agreement renewal rate · Filed 26/02/2024
Each franchisee is generally required to pay a 5.5% royalty fee on sales, as well as certain technology fees.
Business: standard royalty and technology fees · Filed 23/02/2026
As of December 28, 2025, we had 14,956 international franchised stores.
Business: international franchised store count at December 28, 2025 · Filed 23/02/2026
As of December 31, 2023, we had 13,737 international franchised stores.
Business: international franchised store count at December 31, 2023 · Filed 26/02/2024
International Franchise Royalties and Fees
Revenues from international franchise royalties and fees increased $20.0 million, or 6.3%, in 2025 primarily due to an increase in the average number of international franchised stores open during the period resulting from net store growth and higher same store sales (excluding foreign currency impact).
MD&A: realized 2025 international royalty and fee growth · Filed 23/02/2026
In the U.S., we compete primarily against national chains Pizza Hut®, Papa John’s® and Little Caesars Pizza® as well as regional, independent and local establishments.
Risk Factors: named U.S. competitors · Filed 23/02/2026
Competition for both customers and drivers from these order and delivery aggregators and other food delivery services has substantially increased as order and delivery aggregators have grown in size and scale and have diversified the food offerings available for delivery.
Risk Factors: increased aggregator competition for customers and drivers · Filed 23/02/2026
This strategy could also result in store closures if executed too rapidly, as seen in certain international markets in recent years.
Risk Factors: realized international closures associated with rapid expansion · Filed 23/02/2026
Same store sales increased 0.3% in our U.S.
MD&A: third-quarter 2026 U.S. same store sales · Filed 13/10/2026
stores and increased 0.2% in our international stores (excluding foreign currency impact).
MD&A: third-quarter 2026 international same store sales · Filed 13/10/2026
Company-owned store gross margin decreased 4.3 and 4.1 percentage points in the third quarter and three fiscal quarters of 2026, respectively.
MD&A: company-owned store gross margin deterioration · Filed 13/10/2026
The overall food service market, food delivery market and the QSR market are intensely competitive with respect to food quality, price, service, image, convenience and concept, and are often affected by changes in:
•
consumer tastes and perceptions;
•
international, national, regional or local economic conditions;
•
marketing, advertising and pricing, including both price increases and discounting, and publicity;
•
macroeconomic changes, disposable purchasing power and demographic trends; and
•
currency fluctuations and geopolitical considerations related to international operations.
Risk Factors: competitive dimensions and consumer alternatives · Filed 23/02/2026
Franchising enables an individual to be a business owner and maintain control over all employment-related matters and pricing decisions, while also benefiting from the strength of the Domino’s global brand and operating system with limited capital investment by us.
Business: franchisees control retail pricing decisions · Filed 23/02/2026
•
Food costs increased 0.6 percentage points to 30.3% in the third quarter of 2026 and increased 0.7 percentage points to 30.3% in the three fiscal quarters of 2026, each driven by the increase in the food basket pricing to stores.
MD&A: realized food basket price increases and store food-cost pressure · Filed 13/10/2026
Supply chain gross margin increased 0.9 and 0.5 percentage points in the third quarter and three fiscal quarters of 2026, respectively.
MD&A: supply chain gross margin improvement · Filed 13/10/2026
Franchise revenues do not have a cost of sales component, so changes in these revenues have a disproportionate effect on gross margin.
MD&A: franchise revenue mix affects consolidated gross margin · Filed 13/10/2026
•
MORE Stores: Global net store growth of 175 stores, including 26 net store openings in the U.S.
MD&A: third-quarter 2026 global net store growth and U.S. openings · Filed 13/10/2026
International franchise same store sales, excluding the impact of changes in foreign currency exchange rates, increased 1.9% in 2025 and increased 1.6% in 2024.
MD&A: international same store sales growth in 2024 and 2025 · Filed 23/02/2026
Net cash provided by operating activities
520,601
552,256
Cash flows from investing activities:
Capital expenditures
(60,829
)
(56,667
)
Proceeds from sale of assets
27,623
8,458
Sale of investments
—
44,085
Other
(961
)
(1,939
)
Net cash used in investing activities
(34,167
)
(6,063
)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
—
1,000,000
Repayments of long-term debt and finance lease obligations
(4,097
)
(1,147,773
)
Proceeds from exercise of stock options
9,205
12,882
Purchases of common stock
(308,239
)
(277,698
)
Tax payments for restricted stock upon vesting
331
$
841
$
(3,977,546
)
$
(6,057
)
Net income
—
—
—
152,179
—
Dividends declared on common stock and equivalents
($1.99 per share)
—
—
—
(65,729
)
—
Issuance and cancellation of stock awards, net
15,656
—
—
—
—
Tax payments for restricted stock upon vesting
(4,289
)
—
(1,341
)
—
—
Purchases of common stock
(216,282
)
(2
)
(15,047
)
(59,277
)
—
Exercise of stock options
30,803
—
6,227
—
—
Non-cash equity-based compensation expense
—
—
9,697
—
—
Currency translation adjustment
—
—
—
—
626
Balance at September 6, 2026
32,894,733
$
329
$
377
$
(3,950,373
)
$
(5,431
)
Accumulated
Additional
Other
Common Stock
Paid-in
Retained
Comprehensive
Shares
Amount
Capital
Deficit
Loss
Balance at December 28, 2025
33,627,992
$
336
$
1,910
$
(3,898,622
)
$
(4,766
)
Net income
—
—
—
427,740
—
Dividends declared on common stock and equivalents
($5.97 per share)
—
—
—
(199,169
)
—
Issuance and cancellation of stock awards, net
—
—
—
—
(665
)
Balance at September 6, 2026
32,894,733
$
329
$
377
$
(3,950,373
)
$
(5,431
)
10
Financial statements: operating cash flow, capital expenditure, repurchases, declared dividends and outstanding shares · Filed 13/10/2026
27
Long-Term Debt
As of September 6, 2026, we had approximately $4.89 billion of long-term debt, of which $1.33 billion was classified as a current liability.
MD&A: debt outstanding and current classification at September 6, 2026 · Filed 13/10/2026
28
Sources and Uses of Cash
The following table illustrates the main components of our cash flows:
Three Fiscal Quarters
of 2026
Three Fiscal Quarters
of 2025
Net cash provided by operating activities
$
520.6
$
552.3
Net cash used in investing activities
(34.2
)
(6.1
)
Net cash used in financing activities
(451.7
)
(558.2
)
Effect of exchange rate changes on cash
(0.3
)
1.5
Change in cash and cash equivalents, restricted cash and cash equivalents
$
34.4
$
(10.6
)
Operating Activities
Cash provided by operating activities decreased $31.7 million in the three fiscal quarters of 2026, as a result of the negative impact of changes in restricted advertising fund assets and liabilities and changes in operating assets and liabilities.
MD&A: operating cash flow decline and working-capital explanation · Filed 13/10/2026
Pursuant to the terms of the AIP (as described above), based on Incentive Adjusted EBITDA performance of 100.0% of the annual performance incentive target, 100.0% of the target incentive payout was earned by our named executive officers for fiscal 2025.
Compensation discussion: earned 2025 annual performance incentive payout · Filed 10/03/2026
Weiner having a target grant date value of $7,250,000 with an equity mix shifted to focus more heavily on PSUs (from 50% PSUs, 25% RSUs and 25% stock options to 55% PSUs, 25% stock options and 20% RSUs), consisting of: (i) a PSU award of 9,090 stock units (at target) with a three-year performance period, (ii) an RSU award of 3,306 stock units that vest equally over a three-year period in separate tranches and (iii) a stock option award of 13,427 shares that vests equally over a three-year period, has a ten-year term and an exercise price equal to the closing price of the Company’s common stock on the date of grant.
Compensation discussion: approved CEO equity award and multi-year terms · Filed 10/03/2026
The current guidelines require stock ownership after an accumulation period (five years of employment or service with the Company at the individual’s current executive level) equal to six times base salary for our CEO, five times annual cash retainer for our directors, four times base salary for President-level executives, and three times base salary for the other named executive officers.
Compensation discussion: executive and director stock ownership requirements · Filed 10/03/2026
All of our named executive officers and directors who have completed their respective accumulation period under the guidelines are in compliance with such guidelines.
Compensation discussion: actual compliance with stock ownership guidelines · Filed 10/03/2026
(3)
Annual performance target in 2023 reflects the adjusted $905.0 million annual performance target.
Compensation discussion: adjusted 2023 incentive target · Filed 10/03/2026
franchise advertising
128,674
131,642
394,106
387,818
Refranchising loss (gain)
206
—
(3,881
)
(3,883
)
Gain on sale of assets
—
—
(7,780
)
—
Income from operations
241,773
223,168
704,169
658,307
Other (expense) income
(2,539
)
(3,017
)
(20,895
)
5,036
Interest income
2,067
4,060
6,182
11,834
Interest expense
(46,227
)
(45,012
)
(138,511
)
(135,245
)
Income before provision for income taxes
195,074
179,199
550,945
539,932
Provision for income taxes
42,895
39,880
123,205
119,871
Net income
$
152,179
$
139,319
$
427,740
$
420,061
Earnings per share:
Common stock – basic
$
4.61
$
4.11
$
12.85
$
12.31
Common stock – diluted
$
4.60
$
4.08
$
12.80
$
12.22
The accompanying notes are an integral part of these condensed consolidated financial statements.
Financial statements: third-quarter and year-to-date operating income, gains and net income · Filed 13/10/2026
Independence and Leadership Structure:
•
All director nominees, other than the CEO and Executive Chairman, are independent
•
Separate Executive Chairman, Lead Independent Director and Chief Executive Officer leadership structure to maintain independence between Board oversight and the operating decisions of the Company
•
Fully independent Board committees
•
Independent directors, led by the Lead Independent Director, regularly meet in private independent director sessions without management present
Board Practices:
•
Board of Directors and each Board committee conducts an annual self-assessment
•
Limited number of outside public company boards on which our directors can serve
•
Robust director orientation program for incoming directors and annual continuing education budget is provided for each director
•
Directors generally may not stand for reelection after age 75
•
Non-employee directors who began serving in or after April 2025 may not stand for reelection after 15 years of service
•
Board tenure diversity, including two new directors that began serving in 2025, balances fresh perspectives with institutional knowledge
•
Structured process for the Board’s risk oversight, including cybersecurity risk
•
Governance overview: independent committees, lead independent director and private sessions · Filed 10/03/2026
Board engagement and oversight related to environmental, social and governance matters
•
Board oversight of and active engagement in CEO and other senior leadership succession planning
•
Diverse representation of experience and skills on our Board
Accountability:
•
All directors stand for election annually
•
In uncontested director elections, our Majority Voting Policy applies
Governance overview: annual elections and majority voting policy · Filed 10/03/2026
Our menu simplifies and streamlines production and delivery processes and maximizes economies of scale on purchases of our principal food items.
Business: issuer description of procurement economies of scale · Filed 23/02/2026
If the Company has not repaid or refinanced the respective note series prior to the applicable anticipated repayment dates, additional interest of at least 5% per annum will accrue, and the Company’s cash flows other than a weekly management fee to cover certain operating expenses would be directed to the repayment of the securitized debt.
Debt notes: additional interest and cash diversion upon missed anticipated repayment dates · Filed 23/02/2026
