Domino’s Pizza reported fourth-quarter revenue that topped expectations, supported by domestic comparable sales growth that outpaced much of the quick-service restaurant sector and continued store expansion.
BNN Bloomberg spoke with Peter Saleh, managing director and restaurants and food distributors analyst at BTIG, who said the company is delivering on its three per cent U.S. same-store sales target while shares trade near a 10-year trough valuation.
Key Takeaways
- Fourth-quarter revenue rose 6.4 per cent year-over-year to $1.54 billion, topping estimates, while earnings per share of $5.35 were roughly in line with forecasts.
- Total domestic comparable sales increased 3.7 per cent, driven largely by traffic growth and stronger franchise performance.
- Operating income climbed eight per cent from a year earlier as the company added a net 392 stores in the quarter.
- Carryout remains a key growth engine, with mid- to high-single-digit same-store gains in a segment estimated to be about 20 per cent larger than delivery.
- Despite meeting its three per cent annual U.S. comp target and guiding to similar growth in 2026, shares trade near a 10-year low valuation amid investor skepticism and GLP-1 concerns.
Read the full transcript below:
ROGER: Domino’s Pizza delivered a fourth-quarter revenue beat, with stronger-than-expected domestic comparable sales and solid store expansion. Joining us now to break it down is Peter Saleh, managing director at BTIG. Thank you very much for joining us, Peter.
PETER: Thanks for having me on.
ROGER: Any standouts from this fourth quarter?
PETER: Yeah, for sure. You know, 3.7 per cent U.S. comp, driven almost all by traffic growth. It’s head and shoulders above its pizza competitors, head and shoulders above the QSR industry. They are hitting their mark, hitting their targets on what they said they were going to do. They said they would deliver three per cent comps in the U.S. in 2025. Nobody believed them, and they did. And now they’re guiding for another three per cent comp number in 2026 and, I think, based on the stock reaction, I don’t think anybody still believes them. So they’re delivering on their targets, and we think the stock is way undervalued here.
ROGER: What are they doing right?
PETER: Well, look, I think this is a function of they’re growing their carryout business, which was up, call it mid- to high-single-digit same-store sales this year. That’s a category that’s 20 per cent larger, in general, than delivery. And so they’re growing in carryout significantly. They also have some of the best value in the industry with the $6.99 Mix and Match, the $7.99 carryout. You’re seeing some of the other promotions that they’re launching — Boost Weeks and Best Deal Ever. So they have a lot of deep value on the menu, which is really helping them to take share, and has been for, you know, call it 10 to 15 years now.
ROGER: Now we’ve seen other fast-food restaurants lower prices to try and get people in. Are they going to be following that?
PETER: They don’t need to lower prices, because they’re already the value leader. So I just don’t think they’re going to be taking a lot of price. As it is, they didn’t take price in the most recent quarter. I think they’ll take a very small amount of price going forward. But when you’re getting a $7.99 large pizza — that’s a carryout special — I don’t think you’re going to find a better value for that product anywhere else. So I don’t think they need to lower price. But then again, I don’t think they’ll be taking a lot of prices higher.
ROGER: And are those prices what’s keeping — I’m just looking — no weakness among younger, lower-income consumers like others we’re seeing. These people are still coming in.
PETER: Yeah, I mean order counts are up. So the customer is rewarding them with more transactions, and they’re not losing customers at that lower-income or younger consumer like we’re hearing from others. They’re also not really seeing an impact, at least not yet, from the GLP-1 effect. So in our view, they’re really executing extraordinarily well, and they continue to take market share. We think that market share gain continues into 2026. Keep in mind, their largest national competitors are all closing stores, refranchising stores and shrinking, whereas they’re adding stores and growing.
ROGER: They really are going against the grain, aren’t they?
PETER: Yes, they are, and we expect that to continue. And also keep in mind that despite all these great numbers that they’re putting up — eight per cent operating income growth, three per cent same-store sales growth, and great guidance going forward — this stock is trading at or below a 10-year trough valuation. So in our view, very much undervalued.
ROGER: Why do you think that is?
PETER: I think investors are focused a little bit too much on some recent credit card data, which suggests it should be weaker. It suggests that it should have been weaker in the fourth quarter. It was not. It suggests it should be weaker in the first quarter. We don’t think that’s going to be the case. So I just don’t think investors truly believe the story. We’re not sure what else it’s going to take to turn the tide here. But there’s also a lot of concern around GLP-1, which I think is a headwind to the industry by maybe 100 basis points this year. But I think they can overcome it given all the market share opportunities that they have.
ROGER: And any other potential headwinds?
PETER: No, I see more tailwinds, really. Look, I think if we get more stimulus, lower taxes for that lower- and middle-income consumer, that could be a little bit more of a tailwind for them. The World Cup could be a tailwind for them, especially in international markets. They have a lot of international stores. In the U.S., they don’t think the World Cup will be much of a tailwind, maybe a very modest one. So maybe there could be a little bit of something there. But I don’t see a lot of headwinds here. I do think that the three per cent number is very achievable in 2026.
ROGER: And any concerns about the slower international comp performance?
PETER: No, it is a hair weaker, but they continue to perform pretty well. I do think next year, with the benefit of the World Cup, you’ll have a little bit of an acceleration there from what we saw in the fourth quarter.
ROGER: All right. I mean, overall, it just sounds like everything is clicking along. Anybody challenging them right now, anybody even close?
PETER: Not really. I think they’re taking share from just about everybody, including the larger chains and some of the independents as well. You know, we do think McDonald’s resurgence here, but it doesn’t seem to be impacting their performance so far.
ROGER: Okay, Peter, we’ll wrap it up there. But thank you very much for joining us.
PETER: Great. Thanks for having me.
ROGER: Peter Saleh, managing director and analyst at BTIG.
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This BNN Bloomberg summary and transcript of the Feb. 23, 2026 interview with Peter Saleh are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
