Domino's CEO says it's 'just not true' that people are eating less pizza

By Tomi Kilgore

Stock surges after sales rise more than expected, and pizza chain hikes its dividend by 15%

Domino's stock was rallying Monday after a sales beat showed that the quick-service pizza category remains healthy, despite the weakness seen by rivals.

Shares of Domino's Pizza rallied Monday after the chain took a shot at its rivals by saying there was nothing wrong with the quick-service pizza market, as far as it can tell.

Domino's (DPZ) CEO Russell Weiner acknowledged that while the pizza restaurant category is "mature," the market grew in 2025 at the same rate it has done since before the pandemic, at 1% to 2% per year, and is expected to keep growing at that rate in 2026.

"There seems to be a narrative out there that pizza is a challenged and declining category. That is just not true," Weiner said, according to a FactSet transcript of the post-earnings call with analysts.

That narrative comes as Yum Brands (YUM), which is the parent of Domino's rival Pizza Hut, said earlier this month that it had "elevated" store closures in the fourth quarter and as Pizza Hut sales dropped 5% from a year ago while Yum's overall sales increased 2%.

"Our competitor's results are not a reflection of the category's health or its future potential," Weiner said. "Their results are a direct reflection of our strength."

Domino's stock rose 3.8% in recent afternoon trading to make it one of the S&P 500 index's SPX top performers on the day.

Warren Buffett appeared to be a believer in Domino's stock, as his Berkshire Hathaway (BRK.B) boosted its stake in the pizza chain by about 12% during the fourth quarter, while he was still in charge, to more than 3.3 million shares. At current share prices, that stake would be worth about $1.34 billion.

For the quarter to Dec. 28, the company reported that same-store sales, or sales of stores open at least a year, rose 3.7% for its U.S. stores, which was better than the average analyst estimate compiled by FactSet of 3.1% growth. And total revenue grew 6.4% to $1.54 billion, above the FactSet consensus of $1.52 billion.

Those beats helped offset a profit miss, as earnings per share rose 9.4% to $5.35 but still came in below the FactSet consensus of $5.38.

Looking ahead, Weiner said he believes U.S. same-store sales will grow by 3%, which is a faster growth rate than the pizza market overall and better than the FactSet consensus for a 2.7% rise.

Separately, Domino's approved a 15% increase in its quarterly dividend to $1.99 a share. At current share prices, the new annual dividend rate implies a dividend yield of 1.99%, compared with the yield of 1.81% on Yum Brands' stock and the implied yield of 1.17% on the S&P 500, according to FactSet.

Domino's shares have fallen 13.7% over the past 12 months, while the S&P 500 has gained 13.5%.

-Tomi Kilgore

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02-23-26 1512ET