Domino’s Pizza Inc. (NYSE: DPZ) shares surged over 4% in premarket trading on October 14, 2025, after the company reported third-quarter earnings that exceeded Wall Street expectations. The pizza delivery giant posted earnings per share of $4.08, beating the consensus estimate of $3.96, while revenue climbed 6.2% year-over-year to $1.15 billion, slightly above the expected $1.14 billion.
The strong performance was driven by a remarkable 5.2% increase in U.S. same-store sales—well above the 4.0% forecast—as aggressive value promotions and menu innovations successfully attracted cost-conscious consumers during a challenging economic environment.
Domino’s Q3 Success Highlights Power of Value-Driven Strategy
Domino’s strategic focus on value proved effective in the third quarter as the company navigated persistent inflation and cautious consumer spending. The revival of its “Best Deal Ever” promotion in late August, offering any-topping pizzas for $9.99, along with the launch of a parmesan-stuffed-crust pizza, resonated strongly with American consumers seeking affordable dining options.
CEO Russell Weiner noted that the company saw positive order growth in the U.S. driven by these initiatives, which helped the company deliver same-store sales growth of 5.2%, significantly outpacing expectations.
However, international markets presented a mixed picture. International same-store sales grew just 1.7%, missing the 1.91% estimate, as the company faced uneven demand in key markets including Japan and Australia.
Despite this softer international performance, Domino’s overall revenue growth of 6.2% and the earnings beat demonstrated the company’s ability to execute effectively in its core U.S. market. The company’s adjusted EBITDA of $253.9 million exceeded analyst estimates of $235.5 million by 7.8%, with operating margin expanding to 19.5% from 18.4% in the prior-year quarter.
DPZ Shares Rally on Earnings Beat and Upbeat Guidance
As of October 14, 2025, DPZ was trading around $420.77 in morning trading, up approximately 3% from its October 13 close of $408.26. The stock has experienced a choppy year, remaining roughly flat year-to-date with a decline of about 6% for 2025, underperforming the broader market. Over the past week, shares bounced from a low near $405 to the current level, and the stock trades within its 52-week range of $397.12 to $500.55.
Despite the recent volatility, technical indicators show some positive momentum, with the stock forming a “golden cross” pattern in early September when its 50-day moving average crossed above its 200-day moving average.
Wall Street maintains a generally bullish outlook on Domino’s, with a consensus rating of Moderate Buy based on 11 Buy, 7 Hold, and 1 Sell recommendations. The average 12-month price target stands at approximately $508, implying roughly 23-25% upside from current levels. TD Cowen reiterated its Buy rating with a $510 target following the earnings report, while other firms including Loop Capital have targets as high as $574.
The company’s forward P/E ratio of approximately 23 and market capitalization of around $14.5 billion reflect investor confidence in its growth trajectory, despite premium valuation multiples compared to fast-food peers. Domino’s also maintains shareholder-friendly capital allocation, having declared a $1.74 quarterly dividend (yielding approximately 1.7%) and generating robust free cash flow of $495.6 million in the first nine months of 2025, supporting both dividend payments and share repurchases.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.All stock prices were quoted at the time of writing.