Domino's Q3 Profit Beats Estimates but Weak Same-Store Sales Weigh on Stock

Domino's Pizza reported third-quarter 2026 results that topped Wall Street's earnings and revenue expectations, even as sluggish same-store sales growth disappointed investors and pushed the stock lower. Revenue came in at $1.19 billion, above the $1.18 billion consensus estimate and up 3.4% year over year. Adjusted EPS of $4.60 beat the $4.37 estimate by 5.3% and rose 12.7% from a year earlier, while operating income of $241.8 million exceeded the $230 million estimate and grew 8.3% year over year. Net income reached $152.2 million, up 9.2% from Q3 2025.

The soft spot in the report was same-store sales, which grew just 0.3% in the U.S. and 0.2% internationally, excluding foreign currency effects, both figures below investor hopes. Global retail sales reached $4.84 billion in the quarter, up from $4.70 billion a year ago, a gain of 3.2% excluding currency swings. The company added 175 net new stores globally during the quarter, 149 of them international, bringing the total system count to 22,706. Supply chain revenue was $746.2 million, up 7.1% year over year, while U.S. company-owned store revenue fell 25.8% to $61.4 million. Year-to-date free cash flow was $459.8 million, down 7.2% from the prior-year period. Domino's returned $73.6 million via share buybacks and paid a dividend of $1.99 per share, with $1.15 billion remaining under its buyback authorization. No forward guidance was provided.

Joe Jordan formally stepped into the CEO role and said on the earnings call that low-income consumers are ordering more frequently, though with fewer items per order. Jordan framed the company's priority as closing the gap between its best performance and its everyday performance, with a focus on franchisee profitability and deeper customer relationships.