Domino's Is Crushing It While Pizza Rivals Struggle: Here's How

 Domino's Is Crushing It While Pizza Rivals Struggle: Here's How

**Published: February 24, 2026**

You know the feeling. It's Friday night, nobody wants to cook, and you're staring at your phone trying to decide where to order from. Pizza Hut? Papa Johns? Little Caesars? Or that local place down the street?

Lately, more and more people are picking Domino's.

While other pizza chains are closing stores and struggling to get people in the door, Domino's just keeps growing. They reported their numbers yesterday, and they're pretty impressive . U.S. same-store sales jumped 3.7% in the fourth quarter, beating what Wall Street expected .

Meanwhile, their biggest competitors are doing the opposite. They're closing locations, shrinking their footprints, and trying to figure out what went wrong .

So what's Domino's doing that everyone else isn't? Let's break it down in plain English.

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## The Numbers Don't Lie

First, let's look at what Domino's just reported so you understand the scale here.

**Table 1: Domino's Q4 2025 by the Numbers**

| **Metric** | **What Happened** | **Why It Matters** |

| :--- | :--- | :--- |

| U.S. Same-Store Sales | Up 3.7% | Way better than the 3.47% analysts expected  |

| Total Revenue | $1.54 billion | Up 6.4% from last year  |

| Net New Stores | 392 added globally | They're growing while others shrink  |

| Stock Price | Up about 5% after earnings | Investors like what they see |

| Full Year U.S. Growth | Hit their 3% target | Did what they said they'd do  |

**CEO Russell Weiner** put it pretty simply: "In 2025 we demonstrated that when we execute our Hungry for MORE strategy it delivers MORE sales, MORE stores, and MORE profits" .

That's not just corporate talk. The numbers back it up.

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## So What's Domino's Doing Right?

### They're the Value King (And They Know It)

Here's the thing about eating out right now: everything is expensive. Groceries are up. Restaurant prices are up. People are watching every dollar.

Domino's figured this out a long time ago. While other chains are scrambling to offer deals, Domino's already had them.

**Peter Saleh**, an analyst at BTIG who follows restaurants closely, put it this way: "They have some of the best value in the industry with the $6.99 Mix and Match, the $7.99 carryout" .

Let that sink in. You can get a large pizza for $7.99 if you pick it up. Try finding a meal anywhere else for that price.

They've also been running promotions like **"Boost Weeks"** and bringing back the **$9.99 "Best Deal Ever"** . They added a **Parmesan-stuffed crust** that got people talking . And right before the Super Bowl, they ran a deal where you could get any large two-topping pizza for $6.99 .

**Frank Garrido**, Domino's Chief Restaurant Officer, said before the big game: "No matter what football team you're rooting for, Domino's is here to deliver a winning game plan" .

The result? People are showing up. And here's the key—**their sales growth is coming from more customers, not just higher prices**. Saleh says the 3.7% increase was "driven almost all by traffic growth" . That means more people are actually walking in and ordering. Not just paying more for the same stuff.

### They've Mastered the Carryout Game

You might think Domino's is all about delivery. And yeah, they deliver a ton of pizzas. But here's something interesting: **their carryout business is actually growing faster**.

Saleh says carryout same-store sales were up "mid- to high-single-digit" . And here's the stat that really jumps out: the carryout category is about **20% larger than delivery** overall .

Think about that. More people pick up pizza than get it delivered. Domino's figured this out and made their carryout deals irresistible. That $7.99 large pizza deal? That's for carryout.

**Ari Felhandler**, an analyst at Morningstar, said Domino's is "well-positioned to win consumers with its value menu, digital growth, and faster delivery" .

### Their Loyalty Program Actually Works

Loyalty programs can be kind of annoying, right? Points that expire, rewards you never actually get.

Domino's made theirs simple. They added more tiers and made points easier to redeem . And that created what **Sara Senatore**, a senior restaurant analyst at Bank of America Securities, calls a **"virtuous cycle"** .

Here's how it works:

More customers join the loyalty program → Domino's can market directly to them through the app → They don't have to pay third-party apps like DoorDash as much → That saves money → They use those savings for bigger ad budgets → More people hear about Domino's → More customers join the loyalty program.

See how that works? It keeps feeding itself.

Senatore points out that Domino's advertising budget is "like four times or more the size of their nearest competitors" . That's a huge advantage.

### They Partnered With DoorDash (Smart Move)

For years, Domino's mostly did their own delivery. They have their own drivers, their own cars, their whole system.

But they realized they were missing out on customers who use apps like DoorDash to order from multiple places. So they partnered with DoorDash to get their pizzas in front of more people .

This is one of those "if you can't beat 'em, join 'em" moves that actually made sense. Now someone scrolling through DoorDash looking for dinner sees Domino's right there next to everyone else.

### They're Experimenting With the Future

Domino's isn't just sitting still. They're trying new stuff.

In Australia, they recently launched something called **"Pizza Pasta"** — pizza toppings on a layer of pasta instead of a traditional crust . The marketing chief down there, **Allan Collins**, said: "This is not pizza and pasta, this is pizza pasta. We've brought two headline acts together for an unforgettable performance" .

People are going crazy for it on TikTok. One person called it "insane." Another said it was "unbelievably delicious" .

And get this—they're testing **driverless delivery cars** with Ford in Ann Arbor, Michigan . No delivery driver. Just a car that shows up with your pizza.

**Russell Weiner** said the big question they're trying to answer is about "the last 50 feet of the delivery experience" . Will people go out to the car in the rain? Will they figure out the app? It's a real experiment.

But for Domino's, the business case is huge. Lower insurance costs. Less fuel. No theft. Consistent delivery times. They deliver over a billion pizzas a year and have more than 100,000 drivers . If they can replace even some of those with driverless cars, the savings would be enormous.

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## What About Everyone Else?

Here's where it gets interesting. While Domino's is growing, their biggest competitors are shrinking.

**Peter Saleh** put it bluntly: "Their largest national competitors are all closing stores, refranchising stores and shrinking, whereas they're adding stores and growing" .

Pizza Hut, Papa Johns, Little Caesars—they're all dealing with their own problems. Some are closing locations. Others are selling stores to franchisees to get the debt off their books.

A recent study from **Intouch Insight** found that mid-sized pizza chains are actually closing the gap with the big guys . They're getting better at food quality and service. But Domino's is still pulling ahead.

The study also found something interesting about third-party delivery. When they looked at orders fulfilled by DoorDash or Uber Eats, **64% of those drivers didn't use insulated pizza bags** . That means your pizza shows up cold. Domino's uses their own drivers for most deliveries, so they have more control over that stuff.

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## Why Aren't More People Buying Domino's Stock?

This is the part that doesn't quite add up.

Domino's is crushing it. They're growing. They're profitable. Their stock jumped about 5% after the earnings report . But according to Saleh, the stock is still trading near a **10-year low valuation** .

Why?

Two main reasons.

**First, investors don't believe the growth can last.** Saleh says: "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 Domino's keeps hitting their numbers, and investors keep shrugging.

**Second, there's a lot of worry about GLP-1 drugs.** You've probably heard of Ozempic, Wegovy, those weight loss shots. The concern is that if people are on these drugs, they'll eat less. Including less pizza.

Saleh thinks that's a real headwind—maybe 100 basis points for the industry this year—but he thinks Domino's can overcome it "given all the market share opportunities that they have" .

**CEO Russell Weiner** seems confident. He said Domino's expects to "meaningfully increase its market share within the U.S. quick-service restaurant pizza category this year" .

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## What About Other Countries?

It's not all perfect. Domino's international business is growing slower than their U.S. business.

International same-store sales were up only **0.7%** in the fourth quarter, missing the 1.03% analysts expected . The company pointed to tougher conditions in places like Australia and Japan.

But here's something impressive: they've now had **32 consecutive years** of international same-store sales growth . That's not easy to do.

They're also making moves to grow internationally. In February, they announced that the Australia-based **Domino's Pizza Enterprises** is acquiring the Domino's business in Malaysia, Singapore, and Cambodia for about $149 million . That's the largest single acquisition of stores in the company's history.

**Don Meij**, the group CEO, said they're not trying to be number one overnight. "DPE has never entered a market as number one, nor do we impose our flavor preferences on a new market," he said . Instead, they listen to customers and build from there.

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## What This Means for You

### If You're a Customer

You're winning. Domino's is competing hard on price, and that means deals for you. That $7.99 carryout pizza isn't going anywhere. The loyalty program keeps getting better. And if you're in Michigan, you might even get your next pizza delivered by a robot.

### If You're an Investor

This is where it gets interesting. Domino's is doing everything right, and the stock is cheap by historical standards. If you believe they can keep growing—and there's plenty of reason to think they can—this might be worth a closer look.

**Saleh's take**: "They're delivering on their targets, and we think the stock is way undervalued here" .

### If You're a Competitor

You've got work to do. Domino's has figured out value, loyalty, and digital ordering in a way that most others haven't. Catching up won't be easy.

The Intouch Insight study makes clear that **food quality** is actually the biggest driver of satisfaction . So maybe that's a place to start. Focus on making better pizza, not just cheaper pizza.

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## Frequently Asked Questions

**Q: Is Domino's actually cheaper than other pizza places?**

A: For carryout, absolutely. Their $7.99 large pizza deal is hard to beat. For delivery, prices vary, but their Mix and Match deals (often around $6.99 each for two or more items) are very competitive .

**Q: Why are other pizza chains closing stores?**

A: A few reasons. Some over-expanded and now have too many locations. Others are struggling with debt. And some just haven't kept up with what customers want—good value, easy ordering, and reliable delivery .

**Q: What's this "Pizza Pasta" thing?**

A: It's a new menu item in Australia where they put pizza toppings on a pasta base instead of traditional crust. Think mac and cheese with pepperoni on top. People are losing their minds over it on TikTok .

**Q: Are they really delivering pizza with robot cars?**

A: They're testing it in Ann Arbor, Michigan with Ford. You order through the app, get a code, and when the car arrives, you use the code to unlock it and get your pizza. No driver involved .

**Q: Should I buy Domino's stock?**

A: I can't tell you what to do with your money. But here's what the experts say: the company is performing well, gaining market share, and the stock is cheap compared to where it's usually traded. The biggest risks are the GLP-1 weight loss drugs and whether they can keep growing internationally .

**Q: Did Domino's raise their dividend?**

A: Yes. They just approved a **15% increase** to $1.99 per share, payable March 30 .

**Q: How is Domino's doing compared to McDonald's?**

A: McDonald's is also doing well with their value push, but so far it's not hurting Domino's. Saleh says McDonald's resurgence "doesn't seem to be impacting their performance" .

**Q: What's the "Boost Weeks" thing?**

A: It's a promotion Domino's runs periodically with extra discounts on certain items. Part of their strategy to keep people engaged with the brand .

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## The Bottom Line

Look, the pizza business is tough. It's crowded. Margins are thin. And right now, customers are more price-sensitive than they've been in years.

But Domino's is making it work. They've got the right deals, the right technology, and the right strategy. They're adding stores while competitors close them. They're growing while others shrink.

**CEO Russell Weiner** said they're focused on delivering "MORE sales, MORE stores, and MORE profits" . So far, that's exactly what's happening.

The next few years will tell us whether this momentum can last. Can they keep winning with value as costs rise? Will the international business catch up? Will those weight loss drugs actually hurt pizza sales?

For now, though, Domino's is doing something right. And while their competitors are figuring out where they went wrong, Domino's is just... delivering.

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*Got thoughts on this? Ever tried that Pizza Pasta thing? Drop a comment and let me know.*