Domino's Q3 EPS Beats at $4.60, Revenue Up 3.4%, but Shares Fall on 0.3% U.S. Comps

Domino's Pizza (DPZ) reported third-quarter 2026 diluted earnings per share of $4.60, up 12.7% from $4.08 a year earlier and above consensus estimates that ranged from about $4.33 to $4.39 depending on the data provider. Revenue rose 3.4% to $1,185.6 million. Even so, the shares fell about 4% in midday trading on October 13, trading near $297.89 at 12:05 PM ET, after U.S. same store sales growth came in at just 0.3%.

U.S. same store sales are the figure investors watch most closely at Domino's, and the 0.3% result compares with growth of 5.2% in the year-earlier quarter. According to the company's quarterly filing, the U.S. gain came from higher transaction counts, partly offset by a lower average ticket. International same store sales rose 0.2% excluding currency, versus 1.7% a year earlier, so neither segment offset the slowdown.

The earnings beat came from the profit side of the business. Net income rose 9.2% to $152.2 million and income from operations rose 8.3% to $241.8 million, with operating margin of 20.4% against 19.5% a year earlier. The company credited franchise royalties and fees plus supply chain gross margin, and a lower share count from buybacks, including $73.6 million of repurchases in the quarter. Global retail sales rose 3.2% excluding currency, and the system added a net 175 stores.

On the call, management said it expects U.S. comps toward the low end of its low-single-digit range, international comps roughly flat for the year, and operating income growth in the mid-single digits. CEO Joe Jordan, who is stepping into the role, said the opportunity is to get "even closer" to customers and to help franchisees grow profitability. Investors may watch whether transaction growth can translate into steadier U.S. comps before the next report.