Domino’s Pizza Inc (NASDAQ:DPZ) stock fell 2.31% (As on October 15, 11:31:32 AM UTC-4, Source: Google Finance) after the company beats the market’s expectations for the third quarter of FY25. In the fiscal third quarter, Domino’s achieved positive order growth in the United States, supported by the success of its “Best Deal Ever” promotion and innovation around stuffed-crust pizza. These initiatives fueled strong momentum across both delivery and carryout channels. Management emphasized that the company’s strategic consistency and execution excellence position it to capture additional QSR pizza market share globally in 2025 and beyond, while expanding long-term value for franchisees and shareholders.

Moreover, Global retail sales (excluding foreign currency impact) rose 6.3% on a year-over-year basis. This upside was driven by a year-over-year increase in international (5.7%) and U.S. store sales (7%). Comps at Domino’s domestic stores (including company-owned and franchise stores) rose 5.2% year over year. At domestic company-owned stores, Domino’s comps increased 3.4% compared with the 3.1% rise reported a year ago. Domestic franchise store comps rose 5.3% compared with a 3% increase reported in the prior-year quarter.

DPZ in the third quarter of FY25 has reported the adjusted earnings per share of $4.08, beating the analysts’ estimates for the adjusted earnings per share of $3.99, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 6.2 percent to $1.15 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $1.14 billion. This upside is driven by strong contributions from U.S. franchise royalties and fees and higher supply-chain revenues. In the fiscal third quarter, Domino’s gross margin expanded 90 basis points (bps) year over year to 40.1%. However, the U.S. company-owned store gross margin contracted 50 bps year over year to 16.3%. This downside can be attributed to the increase in the company’s food basket pricing to stores and higher wage costs.

Additionally, as of Sept. 7, 2025, cash and cash equivalents totaled $139.7 million compared with $186.1 million as of Dec. 29, 2024. Long-term debt (less current portion) at the end of the fiscal third quarter totaled $4.81 billion compared with $3.83 billion reported in the previous quarter. Inventory amounted to $71.2 million compared with $70.9 million as of Dec. 31, 2024. Capital expenditure at the end of the fiscal third quarter totaled $56.7 million, down from $70.8 million reported in the prior-year quarter.