In a market getting pummeled by tariff anxiety and tech selloffs, Domino’s Pizza did something radical on Monday: it went up.
Shares surged 6% after the pizza giant dropped a Q4 earnings report that showed exactly what Wall Street wanted to see — growth, cash flow, and a fat dividend hike. Revenue hit $1.54 billion, up 6.4% year over year and topping the $1.52 billion consensus estimate. U.S. same-store sales grew 3.7%, beating the 3.47% analysts had penciled in. The only blemish was a tiny EPS miss — $5.35 versus $5.39 expected. Nobody cared.
The real headline was the dividend. Domino’s Board approved a 15% increase, bumping the quarterly payout to $1.99 per share from $1.74. That’s backed by free cash flow that surged 31.2% to $671.5 million for the year. When a company hikes its dividend by double digits and still has cash left over for $80 million in share repurchases, it tells you something about the health of the business.
The numbers underneath are just as impressive. Domino’s added 776 net new stores globally in 2025, bringing its worldwide footprint to 22,142 locations — the most of any pizza chain on Earth. CEO Russell Weiner is targeting 1,000 net new additions in 2026, a significant acceleration. The company’s “Hungry for MORE” strategy — focused on food quality, operational excellence, value, and digital experience — has now delivered 32 consecutive years of international same-store sales growth. That’s a streak most tech companies would envy.
What makes this report especially notable is the context. This is a consumer discretionary stock surging on a day when the Dow dropped over 400 points on tariff fears. While markets fret about trade wars, recession signals, and AI disruption, Americans are still ordering pizza. Domino’s has cracked the code on value perception — its revamped loyalty program and third-party delivery integrations with platforms like Uber Eats have expanded the customer base to “non-core” buyers without killing margins.
The one soft spot? International same-store sales were softer at just 0.7% growth in Q4. Domino’s dominance remains overwhelmingly a U.S. story, and navigating a fragmented global economy while chasing 1,000 new store openings will test management’s execution. The company also plans a “meaningful increase” in marketing spend and a full mobile app overhaul to keep the digital flywheel spinning.
But here’s the bottom line: in a market where flashy growth stocks are getting hammered and investors are hunting for safety, a company that generates $671 million in free cash flow, grows its dividend 15% a year, and still has runway to add thousands of stores is exactly the kind of boring, cash-generating machine that tends to outperform when chaos reigns. The pizza trade might be the smartest trade of the week.