Sometimes you beat the numbers and the stock still goes down. That's the story for Domino's Pizza Inc. (DPZ) on Tuesday, with shares falling nearly 3% in premarket trading despite the company reporting better-than-expected third-quarter earnings and revenue.

Revenue And Margins Improve

Revenue rose 3.4% year over year to $1.186 billion, beating analysts' estimates of $1.177 billion. Higher supply chain sales and global franchise royalties drove growth.

Diluted earnings per share came in at $4.60, beating the consensus estimate of $4.36.

Operating income increased 8.3% to $241.8 million, supported by higher franchise royalties and fees and improved supply chain margins.

Supply chain revenue benefited from higher order volumes and a 2.2% increase in food basket pricing to stores.

Meanwhile, net store growth over the past four quarters boosted U.S. and international franchise royalties and fees.

CEO Joe Jordan said the company aims to build on its strong brand, franchise network and global reach by deepening customer relationships and improving franchisee profitability. He emphasized faster execution, consistent performance and innovation to gain market share and create long-term shareholder value.

Retail Sales And Store Growth

Global retail sales rose 3.2%, excluding foreign currency effects. U.S. retail sales increased 2.1%, while international retail sales grew 4.3%.

However, same-store sales growth remained modest. U.S. same-store sales rose 0.3%, while international same-store sales increased 0.2%.

Supply chain gross margin improved 90 basis points to 12.2%, primarily driven by procurement productivity.

Domino's reported net growth of 175 stores during the quarter.

Cash Flow And Shareholder Returns

Domino's ended the quarter with $229.04 million in cash and cash equivalents and $4.9 billion in total debt.

The company declared a quarterly dividend of $1.99 per share, payable Dec. 30, 2026, to shareholders of record Dec. 15, 2026.

During the quarter, Domino's repurchased 216,282 shares for $73.6 million. Year to date, it has bought back 848,503 shares for $304.9 million.

The company had $1.15 billion remaining under its share repurchase authorization.

Domino's Stock Price Action

DPZ Price Action: Domino's Pizza shares fell 2.86% to $302 during Tuesday's premarket trading, according to market data.