Domino's Pizza Inc. (DPZ) shares jumped nearly 7% in premarket trading Monday after the company reported second-quarter revenue that topped Wall Street estimates, even though earnings per share came in a bit light.

Revenue rose 4.3% year over year to $1.194 billion, beating the $1.18 billion analysts were looking for. The growth came from higher supply chain sales, global franchise royalties, and advertising revenue. Operating income climbed 3.1% to $232 million, helped by higher U.S. and international franchise royalties and fees, plus better supply chain margins.

Adjusted earnings landed at $4.07 per share, below the consensus estimate of $4.20. According to Reuters, growth in Domino's supply chain business helped offset softer restaurant demand as consumers stayed cautious with their spending.

CEO Russell Weiner said that despite ongoing pressure across the U.S. quick-service restaurant industry, Domino's delivered order growth in both its delivery and carryout businesses while attracting millions of new customers. "My conviction in Domino's long-term growth potential remains as strong as ever," he added.

Operating Performance

Global retail sales, excluding foreign currency impacts, increased 3.0% on a currency-neutral basis. U.S. retail sales rose 1.9%, while international retail sales increased 4.1%. Both U.S. and international same-store sales were essentially flat from a year earlier.

Gross margin slipped to 40.0% from 40.3% a year ago. But supply chain gross margin improved by 20 basis points to 12.0%, mainly due to procurement productivity. Domino's opened a net 209 stores during the quarter—26 in the U.S. and 183 internationally.

Cash Flow and Capital Returns

The company ended the quarter with $164.8 million in cash and cash equivalents. Domino's declared a quarterly dividend of $1.99 per share, payable on Sept. 30, 2026, to shareholders of record on Sept. 15, 2026.

During the quarter, the company repurchased 443,917 shares for $156.2 million. Year to date, it has bought back 632,221 shares for $231.3 million. The company still has $1.23 billion remaining under its share repurchase authorization.

DPZ Price Action: Domino's Pizza shares were up 7.08% at $345.00 during premarket trading on Monday.