Oct 13, 2026 earnings call — New CEO outlines Domino launch and updated outlook
Domino's updated 2026 outlook now expects 125 to 150 net new U.S. stores.
Revenue $1.2B (est $1.2B) · EPS $4.60 (est $4.36)
Key quotes
"that is why I have so much confidence in Joseph Hugh Jordan. I have worked alongside Joe for more than 15 years at Domino's and there is nobody I trust more to lead the company forward."
"Our newest innovation, the Domino, is a great example of that mindset in action."
"What I will say is until we get franchisee profits moving in the right direction, there will be incremental pressure going forward."
Analyst Q&A 16
Promotions and bringing back lapsed customers
Q (Christopher O'Cull · Baird): How do you balance keeping value compelling without needing bigger promotions? Do these promotions bring back lapsed customers who then return without a deal?
A: Management said it is a balance: they need to drive order counts while improving ticket. Best Deal Ever worked and was evolved in Q3 by adding stuffed crust to drive trial and repeat purchases, which can help ticket.
"In the in the third quarter. We continue to evolve that promotion by introducing stuffed crust to it, getting consumers to try 1 of our most delicious products." — Joseph Hugh Jordan (CEO)
Delivery channel growth and 1P vs 3P mix
Q (David Palmer · Evercore): Do you see delivery growing now that third-party delivery is rolled out? How will orders split between 1P and 3P and is 3P incremental or cannibalizing 1P?
A: They said delivery should continue to grow across both 1P and 3P. They believe incrementality is around 50% and they are measuring closely, and they have been disciplined in rolling out 3P to protect franchisee profitability.
"As we have stated in the past, we believe that to be around 50%." — Joseph Hugh Jordan (CEO)
Consumer pressure and items per order
Q (Gregory Francfort · Guggenheim): How is the tougher consumer backdrop affecting your business? Are customers choosing smaller items and is this dragging down the check? What can you do to fix it?
A: They said order counts remain strong, especially among lower-income consumers, but in Q3 the pressure showed up mainly as lower items per order. Their approach is to offer value and drive additional items per order (for example with the lava cake) to improve ticket.
"So our job is to continue to make sure we are offering great value to them How can we drive additional items per order while still driving value with things like the lava cake?" — Joseph Hugh Jordan (CEO)
Turning traffic into higher sales per store
Q (Brian Bittner · Oppenheimer): You have strong traffic growth. What can you control to turn that into better same-store sales, given ticket pressure? Do you need traffic without promotions or is it macro-driven?
A: They said part is macro pressure but they have the profit power to keep offering value. Orders are coming in at slightly lower ticket but remain profitable for stores, and as pressures ease they can reduce discounting and use targeted promotions and the new website to raise items per order.
"They are still profitable orders for our stores." — Joseph Hugh Jordan (CEO)
U.S. unit growth cut: opens or closures?
Q (Lauren Silberman · Deutsche Bank): Is the cut to 125-150 U.S. units this year due to fewer net opens or to closures? Could unit growth moderate further next year?
A: They said the update reflects pressure in the pipeline and on franchisee profitability that surfaced in Q2 and continued into Q3, and many openings are back-end loaded. This is not about closures but about franchisees pausing openings until profitability stabilizes; long-term economics remain attractive.
"And that is why given where we are, I think we are updating to 125-150 stores for the year." — Sandeep Reddy (CFO)
Future U.S. unit growth and DPE status
Q (John Ivankoe · JPMorgan): Directionally, will fiscal 2027 have fewer unit opens than 2026? And what is your early read on DPE renewals and how you might stabilize or reaccelerate growth there?
A: They said until franchisee profits move in the right direction there will be incremental pressure and they will update after Q4. On DPE, management is encouraged by the new DPE CEO and his focus on reducing promotions and driving profitability through high volume; they will work with DPE or reallocate markets if needed.
"I am more encouraged on the DPE business than I have been in quite some time." — Joseph Hugh Jordan (CEO)
Key drivers: loyalty, promotions, innovation
Q (Dennis Geiger · UBS): Which sales levers will be most important going into 2027—promos, loyalty, menu innovation? Will emphasis change?
A: They said loyalty is a major focus: moving customers up frequency bands to get extra occasions with tailored offers. They also pointed to product innovation (the Domino launch) aimed at pushing pizza into new occasions beyond its usual ones.
"Our loyalty program continues to work really hard for us." — Joseph Hugh Jordan (CEO)
Order count trend and faster idea rollout
Q (Peter Saleh · BTIG): How did order count growth progress through the quarter and what is the Q4 outlook? Also, what do you mean by advancing winning ideas faster?
A: They said order count growth has been strong all year and they expect it to stay strong in Q4, backed by a strong Q4 marketing program. Advancing ideas faster means staying closer to the consumer, prioritizing fewer high-impact initiatives, and moving them quickly across operations, marketing, and tech—Domino's launch is an example.
"We anticipate that will continue to be strong in Q4." — Joseph Hugh Jordan (CEO)
Legacy of prior CEO and supply chain margins
Q (Danilo Gargiulo · Bernstein): How do you define Russell's legacy and how will you define yours? On supply chain, why did productivity continue and what is the outlook into Q4 and 2027?
A: They said Russell left the brand stronger with higher sales and share; the new CEO wants to push results further and expand beyond pizza. On supply chain, they said performance and productivity have been strong, route optimization added benefits, profits are shared 50/50 with franchisees, and going forward the focus is on gross profit dollar growth rather than margin expansion.
"All this profit improvement is shared with our franchisees." — Sandeep Reddy (CFO)
Expanding beyond pizza and long-term growth
Q (Sara Senatore · BofA): Why have past attempts to expand pizza into other occasions failed and what will you do differently? Any thoughts on long-term growth targets and the 8.5k+ store view?
A: They said the difference is understanding where the brand can meet customers' emotional and functional needs; Domino targets group occasions where pizza can compete. They reiterated belief in 8.5 thousand-plus stores and long-term potential to grow share toward higher growth rates, and will discuss 2027 guidance in February.
"We continue to believe in the 8.5 thousand-plus stores." — Joseph Hugh Jordan (CEO)
Same-store sales guidance and balance sheet use
Q (Andrew Charles · TD Cowen): Is 2026 U.S. same-store sales guidance the low end of low-single-digits (about 1%)? Are you willing to use the balance sheet to invest more in equipment, remodels, or advertising?
A: They said U.S. same-store sales are still low single digits but likely at the low end; they won't give an exact number. On cash use, priorities are unchanged: they will make compelling investments in the business and then return remaining free cash flow to shareholders, while being comfortable operating below the 4x leverage lower bound in the current environment.
"If we see a compelling investment to make in the business, we will make it." — Sandeep Reddy (CFO)
Actions to support franchisee profits
Q (Brian Harbour · Morgan Stanley): Beyond sales initiatives, what specific actions will you take to improve franchisee store-level profitability?
A: They said the marketing calendar and balancing order count with ticket are central. They are investing in operational consistency (DomOS and an orchestration agent) to reduce variability, improve product and service consistency, and thereby raise retention, frequency, and franchisee results.
"By improving our operational consistency, we can also drive significant gains for our franchisees." — Joseph Hugh Jordan (CEO)
Franchise incentives and GLP-1 drug effects
Q (Jon Tower · Citi): Would you consider offering franchisee incentives to spur U.S. unit growth? Is the items-per-order slip an early sign of GLP-1 effects on your business?
A: They said incentives have always been part of their history and will continue to be used. On items-per-order, they believe the sequential decline is due to the macro, and with current knowledge they do not see a meaningful GLP-1 impact but will continue to evaluate and update if needed.
"We do not believe there is a meaningful impact to our business with what we know today." — Sandeep Reddy (CFO)
Store-level EBITDA direction for franchisees
Q (Jeff Farmer · Gordon Haskett): What are U.S. franchisees seeing on store-level EBITDA in 2026 and any directional view for 2027?
A: They said they will not provide specific numbers but acknowledged there is year-on-year pressure in absolute dollars on franchisee profitability. Their objective is to stabilize profits and then grow them, and they will provide more detail on full-year franchise profits on the Q4 call.
"There is pressure on franchisee profitability, that means there is year-on-year pressure in terms of absolute dollars." — Sandeep Reddy (CFO)
Promotional cadence for 2027
Q (Zach Fadem · Wells Fargo): Do you plan to be more or less promotional in 2027? If the backdrop stays similar, does the game plan need to change to accelerate comps?
A: They said the plan must evolve every year as they learn and launch programs. Promotional cadence in the marketplace has increased, but their cadence has not shifted much year over year and they do not expect big changes for 2027; they will use available levers to drive value, order counts, and ticket.
"In terms of promotional cadence, we have commented that we have seen more of that in the marketplace." — Joseph Hugh Jordan (CEO)
Competition and category evolution
Q (Chris Carril · KeyBanc): Can you expand on the competitive environment and how the pizza category is evolving? Are you seeing promotional pressure from outside pizza?
A: They said their focus is on improving Domino's performance within the pizza category where they have about a 23-ish share and room to grow. They also noted pizza increasingly interacts with broader QSR via 3P, consumer behavior is changing, and understanding those occasions can expand their total addressable market.
"We are still as we talk about it, a 23 ish share in the market." — Joseph Hugh Jordan (CEO)