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 · 18/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · The large installed franchise network and actual growth in recurring brand royalties demonstrate a commercially valuable intangible asset. Procurement productivity reinforces it, although comparative cost leadership is unproven.
durability · 2/4 · The established network and positive 2024–2025 international same store sales support persistence, but recent same store sales stagnation and absent renewal or contract-duration evidence constrain the assessment. Management’s claimed brand history alone does not demonstrate exceptional durability.
customer dependency · 1/4 · Franchisees pay for the brand and operating system, but the disclosed consumer market offers numerous competing pizza and delivery choices. The passages establish weak consumer dependency and do not demonstrate material switching friction.
erosion resilience · 2/4 · Store growth and procurement gains demonstrate continued resilience, offset by nearly flat recent same store sales, lower company-owned store margins and realized international expansion-related closures. Competitive risks are not treated as proof of realized market-share loss.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Food basket pricing to stores increased, while supply chain revenues and margins improved. This demonstrates some realized upstream pricing, but procurement gains also contributed and store food-cost pressure increased. Consumer menu pricing realization is unavailable.
retention · 2/4 · Positive 2025 same store sales and continued store additions provide indirect evidence of sustained demand and franchise participation. Nearly flat second-quarter 2026 same store sales temper that evidence. No customer retention or franchise renewal rate is inferred.
margin resilience · 2/4 · Supply chain margin improvement contrasts with substantial company-owned store margin deterioration. Royalty revenue has no cost-of-sales component, so consolidated margins also reflect business mix and cannot by themselves prove pricing power.
contractual freedom · 2/4 · Independent franchisees explicitly control retail pricing, limiting the issuer’s direct control across approximately 99% of stores. Percentage-of-sales royalties capture retail sales changes, but the passages do not establish freedom to reset royalty rates or supply terms.
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 · First-half 2026 operating cash flow of $352.6 million covered $39.0 million of capital expenditures and cash repurchases and dividends of $302.9 million; diluted weighted-average shares declined. However, historical repurchases also used recapitalization proceeds and borrowings, and debt refinancing terms can divert cash flows. Repurchase value creation is not established.
incentive alignment · 3/4 · Actual performance-linked 2025 payouts, multi-year PSU mechanics, ownership requirements and disclosed compliance demonstrate meaningful alignment. The 2023 target adjustment shows committee discretion, and complete individual ownership amounts are unavailable. These are disclosed arrangements and earned payouts, not assumed adoption of proposals.
execution · 2/4 · Execution is assessed indirectly from operating outcomes: 2025 store expansion and operating income growth, further 2026 net openings and procurement productivity. Recent same store sales stagnation, store margin deterioration and slightly lower first-half net income make the overall record mixed; operating income also includes disclosed gains.
governance · 3/4 · Disclosed practices include independent committees, a lead independent director, private independent-director sessions, annual elections, proxy access and shareholder special-meeting rights. The executive chairman remains non-independent. These concrete safeguards support a strong grade, without proving exceptional oversight effectiveness or assuming proposed governance changes passed.
Evidence
We are primarily a franchisor, with approximately 99% of Domino’s global stores owned and operated by our independent franchisees as of June 14, 2026.
MD&A overview; franchise ownership as of June 14, 2026 · Filed 20/07/2026
Royalties are ongoing percent-of-sales fees for use of the Domino’s® brand marks.
MD&A overview; percentage-of-sales brand royalties · Filed 20/07/2026
As of December 28, 2025, we had 14,956 international franchised stores.
Business; international franchised store count · Filed 23/02/2026
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; 2025 international franchise royalty and fee growth · Filed 23/02/2026
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; 2024 and 2025 international same store sales · Filed 23/02/2026
same store sales growth of 3.0%; international same store sales growth (excluding foreign currency impact) of 1.9% • Opened 776 net new stores worldwide in fiscal 2025 • Income from operations up 8.5% in fiscal 2025 (excluding the $0.6 million negative impact of foreign currency exchange rates on international franchise royalty revenues, income from operations increased 8.6% for fiscal 2025) For a description of how the Company calculates same store sales, excluding foreign currency impact, global retail sales, excluding foreign currency impact, and net store growth, which are commonly-used statistical measures in the QSR industry that we believe are important to understanding our financial performance, see pages 38 and 39 in our 2025 10-K.
Proxy summary; 2025 sales, net store openings and operating income achievements · Filed 10/03/2026
• MORE Stores: Global net store growth of 209 stores, including 26 net store openings in the U.S.
Second-quarter 2026 highlights; global net store growth · Filed 20/07/2026
• Food costs decreased 0.8 percentage points to 70.2% in the second quarter of 2026 and decreased 0.6 percentage points to 70.1% in the two fiscal quarters of 2026, driven primarily by procurement productivity, partially offset by the increase in the cost of our food basket.
Supply chain gross margin discussion; procurement productivity · Filed 20/07/2026
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.
Competition risk; named U.S. pizza 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.
Competition risk; 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.
Expansion risk; realized international store closures following rapid expansion · Filed 23/02/2026
Same store sales increased 0.1% in our U.S.
Second-quarter 2026 highlights; U.S. same store sales · Filed 20/07/2026
stores and declined 0.1% in our international stores (excluding foreign currency impact).
Second-quarter 2026 highlights; international same store sales · Filed 20/07/2026
Company-owned store gross margin decreased 4.2 and 4.0 percentage points in the second quarter and two fiscal quarters of 2026, respectively.
Gross margin discussion; company-owned store margin deterioration · Filed 20/07/2026
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.
MD&A overview; franchisee pricing control and franchisor capital requirements · Filed 20/07/2026
• Food costs increased 0.8 percentage points to 30.3% in the second quarter of 2026 and increased 0.7 percentage points to 30.3% in the two fiscal quarters of 2026, each driven by the increases in the food basket pricing to stores.
Company-owned store gross margin; realized food basket pricing increases · Filed 20/07/2026
Supply Chain Gross Margin Second Quarter of 2026 Second Quarter of 2025 Two Fiscal Quarters of 2026 Two Fiscal Quarters of 2025 Revenues $ 731.7 100.0 % $ 687.1 100.0 % $ 1,430.7 100.0 % $ 1,357.0 100.0 % Cost of sales 643.7 88.0 % 606.1 88.2 % 1,257.7 87.9 % 1,198.1 88.3 % Supply chain gross margin $ 88.0 12.0 % $ 81.0 11.8 % $ 173.0 12.1 % $ 158.9 11.7 % Supply chain gross margin increased $7.0 million, or 8.7%, in the second quarter of 2026, and increased $14.1 million, or 8.9%, in the two fiscal quarters of 2026.
Supply chain results; revenues and gross margin · Filed 20/07/2026
Franchise revenues do not have a cost of sales component, so changes in these revenues have a disproportionate effect on gross margin.
Gross margin discussion; franchise revenue accounting and business mix · Filed 20/07/2026
and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Two Fiscal Quarters Ended June 14, June 15, (In thousands) 2026 2025 Cash flows from operating activities: Net income $ 275,561 $ 280,742 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 40,781 40,713 Refranchising gain (4,087 ) (3,883 ) Gain on sale of assets (7,780 ) — Loss on disposal of assets 496 612 Amortization of debt issuance costs 2,970 2,419 Provision (benefit) for deferred income taxes 5,150 (2,700 ) Non-cash equity-based compensation expense 21,146 21,356 Excess tax benefits from equity-based compensation (625 ) (2,343 ) Provision (benefit) for losses on accounts and notes receivable 38 (4 ) Unrealized and realized loss (gain) on investments 18,356 (8,053 ) Changes in operating assets and liabilities (1,197 ) 19,663 Changes in advertising fund assets and liabilities, restricted 1,794 18,338 Net cash provided by operating activities 352,603 366,860 Cash flows from investing activities: Capital expenditures (39,008 ) (35,231 ) Proceeds from sale of assets 15,184 8,458 Sale of investments — 44,085 Other (826 ) (2,517 ) Net cash (used in) provided by investing activities (24,650 ) 14,795 Cash flows from financing activities: Repayments of long-term debt and finance lease obligations (1,575 ) (1,861 ) Proceeds from exercise of stock options 2,978 12,319 Purchases of common stock (234,616 ) (203,041 ) Tax payments for restricted stock upon vesting (12,863 ) (8,472 ) Payments of common stock dividends and equivalents (68,242 ) (60,257 ) Net cash used in financing activities (314,318 ) (261,312 ) Effect of exchange rate changes on cash (820 ) 1,848 Change in cash and cash equivalents, restricted cash and cash equivalents 12,815 122,191 Cash and cash equivalents, beginning of period 125,675 186,126 Restricted cash and cash equivalents, beginning of period 216,110 195,370 Cash and cash equivalents included in advertising fund assets, restricted, beginning of period 92,200 80,928 Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period 433,985 462,424 Cash and cash equivalents, end of period 164,836 272,859 Restricted cash and cash equivalents, end of period 187,885 211,734 Cash and cash equivalents included in advertising fund assets, restricted, end of period 94,079 100,022 Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period $ 446,800 $ 584,615 The accompanying notes are an integral part of these condensed consolidated financial statements.
Condensed consolidated cash flows; first-half 2026 cash generation, capital expenditures and shareholder distributions · Filed 20/07/2026
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; refinancing consequences and cash flow restrictions · Filed 23/02/2026
Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2023 145,644 $ 381.00 Shares granted 167,515 315.51 Shares forfeited (9,799 ) 354.44 Shares vested (54,225 ) 368.41 Nonvested at December 31, 2023 249,135 $ 341.86 Shares granted 85,264 453.64 Shares forfeited (15,216 ) 362.18 Shares vested (74,265 ) 356.22 Nonvested at December 29, 2024 244,918 $ 373.58 Shares granted 82,669 450.71 Shares forfeited (20,346 ) 400.67 Shares vested (79,668 ) 370.75 Nonvested at December 28, 2025 227,573 $ 404.05 (10) Capital Structure The Company’s share repurchase programs have historically been funded by excess operating cash flows, excess proceeds from the Company’s recapitalization transactions and borrowings under the Company’s variable funding notes.
Equity awards and capital structure; vesting activity and historical repurchase funding · Filed 23/02/2026
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 • 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 • Shareholder "proxy access" right to include director nominees in our Proxy Statement • Right of shareholders representing, in aggregate, 25% of outstanding shares to call a special meeting • No supermajority voting requirements • All directors are subject to anti-pledging and anti-hedging provisions under our Insider Trading Policy • Annual advisory vote on executive compensation • Regular engagement with major shareholders to seek their input on issues and to address their questions and concerns PROXY SUMMARY DOMINO’S PIZZA, INC.
Corporate governance highlights; independence, accountability and shareholder rights · 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.
Stock ownership guidelines; executive and director 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.
Stock ownership guidelines; disclosed compliance · Filed 10/03/2026
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.
Annual performance incentives; actual fiscal 2025 attainment and earned payout · Filed 10/03/2026
Each year’s achievement is then “banked” until the three-year performance period is complete, at which time the achievement for each year in the performance period is averaged to determine the final payout for each metric.
Performance stock units; three-year achievement averaging and payout mechanics · Filed 10/03/2026
As previously disclosed, the original $930.0 million annual performance target for 2023 remained the level at or above which an award in excess of a named executive officer’s annual performance incentive target could be earned and reflects an 8.5% increase from the prior year’s actual results and a 1.3% decrease from the prior year’s performance target.
Annual performance incentives; original 2023 target and above-target payout condition · Filed 10/03/2026
franchise advertising 134,903 132,201 265,432 256,176 Refranchising gain (4,087 ) (3,883 ) (4,087 ) (3,883 ) Gain on sale of assets — — (7,780 ) — Income from operations 232,039 225,044 462,396 435,139 Other (expense) income (12,366 ) (15,974 ) (18,356 ) 8,053 Interest income 1,613 3,829 4,115 7,774 Interest expense (46,057 ) (44,648 ) (92,284 ) (90,233 ) Income before provision for income taxes 175,229 168,251 355,871 360,733 Provision for income taxes 39,479 37,160 80,310 79,991 Net income $ 135,750 $ 131,091 $ 275,561 $ 280,742 Earnings per share: Common stock - basic $ 4.09 $ 3.84 $ 8.25 $ 8.20 Common stock - diluted $ 4.07 $ 3.81 $ 8.21 $ 8.14 The accompanying notes are an integral part of these condensed consolidated financial statements.
Condensed consolidated income statement; operating income, gains and net income · Filed 20/07/2026
Earnings Per Share Fiscal Quarter Ended Two Fiscal Quarters Ended June 14, June 15, June 14, June 15, 2026 2025 2026 2025 Net income available to common stockholders - basic and diluted $ 135,750 $ 131,091 $ 275,561 $ 280,742 Basic weighted average number of shares 33,221,944 34,163,399 33,415,646 34,223,725 Earnings per share – basic $ 4.09 $ 3.84 $ 8.25 $ 8.20 Diluted weighted average number of shares 33,318,244 34,401,016 33,566,494 34,477,191 Earnings per share – diluted $ 4.07 $ 3.81 $ 8.21 $ 8.14 The denominators used in calculating diluted earnings per share for common stock for the second quarters and two fiscal quarters each ended June 14, 2026 and June 15, 2025 do not include the following because the effect of including these shares would be anti-dilutive or because the performance targets for these awards had not yet been met: Fiscal Quarter Ended Two Fiscal Quarters Ended June 14, June 15, June 14, June 15, 2026 2025 2026 2025 Anti-dilutive shares underlying stock-based awards Stock options 259,652 87,009 232,667 89,147 Restricted stock units 78,691 — 72,457 — Performance condition not met Performance-based restricted stock units 46,571 41,957 46,571 41,957 4.
Earnings per share; weighted-average shares and performance conditions · Filed 20/07/2026
For more than 65 years, we have built Domino’s into one of the most widely-recognized consumer brands in the world.
MD&A overview; management assertion about brand recognition and history · Filed 20/07/2026
Our supply chain segment is also subject to competition from outside suppliers.
Competition risk; outside supply chain suppliers · Filed 23/02/2026
