Sales Growth Analysis of McDonald's and Domino's
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 05 2026
0mins
Source: NASDAQ.COM
- McDonald's Strong Performance: In Q4 2025, McDonald's reported a 10% year-over-year revenue increase and a 5.7% rise in same-store sales globally, with the U.S. market achieving 6.8%, demonstrating its ability to attract budget-conscious consumers amid fierce competition in the fast-food sector.
- Domino's Sales Growth: Despite a 1% decline in Domino's stock in 2025, the chain achieved a 3.7% increase in same-store sales in Q4 and a 3% increase for the full year, with revenue rising approximately 6%, indicating its resilience in a challenging fast-food environment.
- Margin Challenges: Domino's experienced a 5.4 percentage point drop in gross margin for company-owned stores to 10.1% in the latest quarter, yet its supply chain gross margin improved slightly by 0.1 percentage points to 11.4%, with expectations for overall operating margin improvement in 2026 reflecting ongoing cost management efforts.
- Market Share Growth: With over 30% market share in the pizza segment, Domino's CEO stated ambitions to double U.S. retail sales and target a 40% to 50% market share, positioning the company favorably for future growth, especially given its low valuation and potential for attracting investor interest.
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Analyst Views on DPZ
Wall Street analysts forecast DPZ stock price to rise
15 Analyst Rating
6 Buy
8 Hold
1 Sell
Moderate Buy
Current: 369.000
Low
370.00
Averages
464.83
High
556.00
Current: 369.000
Low
370.00
Averages
464.83
High
556.00
About DPZ
Domino’s Pizza, Inc. is a pizza company with a significant business in both delivery and carryout. The Company operates through three segments: U.S. stores, international franchise, and supply chain. The U.S. stores segment is comprised primarily of its franchise operations, which consists of franchised stores located in the United States. The segment also operates a network of United States Company-owned stores. The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets. The supply chain segment primarily includes the distribution of food, equipment and supplies to stores from the Company’s supply chain center operations in the United States and Canada. It is primarily a franchisor, with approximately 99% of its global stores owned and operated by its independent franchisees. In its international markets, the Company generally grants geographical rights to the Domino’s Pizza brand to master franchisees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investors Feel Nervous About Market Outlook Amid Rising Oil Prices and Supply Chain Issues
- Domino's Competitive Edge: Domino's Pizza (DPZ) has leveraged its 'fortressing' strategy by opening numerous stores nearby, which shortens delivery times; despite a 5% revenue increase in 2025, net income grew only 3%, indicating resilience in a high-cost environment.
- Clorox's Sales Challenges: Clorox (CLX) faced a 10% year-over-year decline in net sales in the first half of fiscal 2026, primarily due to a cyberattack and CRM system changes, although a projected 13% rebound in 2027 suggests potential recovery, with current stock prices over 55% below 2021 highs.
- Target's Brand Revival Plan: Target (TGT) has pledged $5 billion under new CEO Michael Fiddelke to enhance stores and supply chains; despite a 2% drop in net sales in 2025, a forecasted 2% increase in 2026 indicates potential for brand revival.
- Investment Opportunities in Market Environment: Despite a challenging market, investors are seeking stocks like Domino's, Clorox, and Target that may succeed in any environment, positioning them as safer investment choices.
See More
Domino's Pizza Positioned for Investor Success Amid Market Challenges
- Domino's Market Performance: During the pandemic, Domino's Pizza emerged as a winner due to its takeout and delivery model, and although growth has pulled back post-pandemic, its 'fortressing' strategy of opening numerous stores nearby has shortened delivery times, establishing a competitive edge.
- Dividend Growth and Valuation: Domino's annual dividend increased by 15% last year to $7.96 per share, with a current yield of 2.2%, significantly above the S&P 500 average of 1.1%, indicating its stability in an uncertain market.
- Clorox's Sales Challenges: Clorox's net sales declined by 10% year-over-year in the first half of fiscal 2026, primarily due to a cyberattack and CRM system changes, leading to a stock price drop of over 55% from its 2021 peak, but analysts expect a 13% rebound in fiscal 2027.
- Target's Brand Revival Plan: After years of declining sales, Target's new CEO has pledged to invest $5 billion in improving stores and supply chains, and despite a 2% drop in net sales in 2025, a forecasted 2% increase in 2026 suggests potential for brand revival.
See More
Domino's Launches Free Sauce Promotion with Pizza Orders
- Promotion Duration: Domino's announced a free Slice Sauce offer with Handmade Pan or Parmesan Stuffed Crust Pizza orders from now until May 7, 2026, aimed at enhancing customer experience and driving sales.
- Packaging Upgrade: The sauce will be presented in premium black and gold packaging, reflecting Domino's commitment to quality while adding a luxurious touch to the brand image, thereby attracting more consumer attention.
- Exclusive Product Launch: Customers will receive password-only access to shop customized Shinola watches and leather goods at a preferred rate after purchasing pizza, further enhancing purchase motivation and brand loyalty.
- Product Variety: The Shinola collection features various watches and leather goods priced between $115 and $1,350, showcasing Domino's collaboration with a high-end brand to elevate its image and attract upscale consumers.
See More
Domino's Offers Free Slice Sauce Promotion
- Promotion Launch: Domino's is offering free Slice Sauce with any online purchase of Handmade Pan or Parmesan Stuffed Crust Pizza, aimed at enhancing customer experience and boosting sales, running until June 14.
- Product Enhancement: The new Slice Sauce is a creamy dip designed to elevate the flavor of every pizza bite, aligning with Domino's premium product positioning and expected to attract more consumers to try new flavors.
- Packaging Design: The sauce features premium black and gold packaging that complements the high-end black and gold boxes of the Handmade Pan and Parmesan Stuffed Crust Pizza, reflecting the brand's focus on product aesthetics and quality, thereby increasing consumer purchase intent.
- Limited Edition Goods: To celebrate the launch of the new sauce, Domino's is also offering exclusive black and gold Shinolatime timepieces and leather goods, aiming to draw consumer attention through unique merchandise, enhance brand image, and increase customer loyalty.
See More
Domino's Launches New Sauce Promotion
- Promotion Launch: Domino's introduces its new Slice Sauce, offering it for free with any online purchase of Handmade Pan or Parmesan Stuffed Crust pizzas until June 14, aiming to enhance customer experience and stimulate sales growth.
- Premium Product Packaging: The newly launched Handmade Pan and Parmesan Stuffed Crust pizzas feature black and gold packaging, highlighting their premium positioning to attract quality-seeking consumers and enhance brand image.
- Exclusive Merchandise Collaboration: Domino's partners with Shinola to offer a curated selection of black and gold watches and leather goods, further enhancing the brand's luxury appeal and attracting high-end customer segments to boost loyalty.
- Market Strategy Adjustment: Through this promotional campaign, Domino's not only increases product value but also strengthens its differentiation advantage in the highly competitive fast-food market with premium packaging and exclusive merchandise collaborations.
See More
Domino's Launches Free Sauce Promotion
- Free Sauce Giveaway: Domino's is offering its new Slice Sauce for free with any online purchase of Handmade Pan or Parmesan Stuffed Crust Pizza until June 14, aiming to enhance customer dining experiences and boost sales.
- Luxury Collaboration: To celebrate the launch of the new sauce, Domino's has partnered with Shinola to offer a curated collection of black and gold timepieces and leather goods, providing exclusive discounts to customers who order specific pizzas, thereby enhancing brand image and customer loyalty.
- Market Positioning: The Slice Sauce features a creamy and zesty flavor with a hint of Parmesan, targeting consumers seeking high-quality dining experiences, which is expected to drive sales growth in premium products.
- Digital Sales Leadership: In 2025, Domino's generated over 85% of its U.S. retail sales through digital channels, and the introduction of the new sauce and collaborative product line will further solidify its leadership in the digital marketplace.
See More
Investors Feel Nervous About Market Outlook Amid Rising Oil Prices and Supply Chain Issues
- Domino's Competitive Edge: Domino's Pizza (DPZ) has leveraged its 'fortressing' strategy by opening numerous stores nearby, which shortens delivery times; despite a 5% revenue increase in 2025, net income grew only 3%, indicating resilience in a high-cost environment.
- Clorox's Sales Challenges: Clorox (CLX) faced a 10% year-over-year decline in net sales in the first half of fiscal 2026, primarily due to a cyberattack and CRM system changes, although a projected 13% rebound in 2027 suggests potential recovery, with current stock prices over 55% below 2021 highs.
- Target's Brand Revival Plan: Target (TGT) has pledged $5 billion under new CEO Michael Fiddelke to enhance stores and supply chains; despite a 2% drop in net sales in 2025, a forecasted 2% increase in 2026 indicates potential for brand revival.
- Investment Opportunities in Market Environment: Despite a challenging market, investors are seeking stocks like Domino's, Clorox, and Target that may succeed in any environment, positioning them as safer investment choices.
See More
Domino's Pizza Positioned for Investor Success Amid Market Challenges
- Domino's Market Performance: During the pandemic, Domino's Pizza emerged as a winner due to its takeout and delivery model, and although growth has pulled back post-pandemic, its 'fortressing' strategy of opening numerous stores nearby has shortened delivery times, establishing a competitive edge.
- Dividend Growth and Valuation: Domino's annual dividend increased by 15% last year to $7.96 per share, with a current yield of 2.2%, significantly above the S&P 500 average of 1.1%, indicating its stability in an uncertain market.
- Clorox's Sales Challenges: Clorox's net sales declined by 10% year-over-year in the first half of fiscal 2026, primarily due to a cyberattack and CRM system changes, leading to a stock price drop of over 55% from its 2021 peak, but analysts expect a 13% rebound in fiscal 2027.
- Target's Brand Revival Plan: After years of declining sales, Target's new CEO has pledged to invest $5 billion in improving stores and supply chains, and despite a 2% drop in net sales in 2025, a forecasted 2% increase in 2026 suggests potential for brand revival.
See More
Domino's Launches Free Sauce Promotion with Pizza Orders
- Promotion Duration: Domino's announced a free Slice Sauce offer with Handmade Pan or Parmesan Stuffed Crust Pizza orders from now until May 7, 2026, aimed at enhancing customer experience and driving sales.
- Packaging Upgrade: The sauce will be presented in premium black and gold packaging, reflecting Domino's commitment to quality while adding a luxurious touch to the brand image, thereby attracting more consumer attention.
- Exclusive Product Launch: Customers will receive password-only access to shop customized Shinola watches and leather goods at a preferred rate after purchasing pizza, further enhancing purchase motivation and brand loyalty.
- Product Variety: The Shinola collection features various watches and leather goods priced between $115 and $1,350, showcasing Domino's collaboration with a high-end brand to elevate its image and attract upscale consumers.
See More
Domino's Offers Free Slice Sauce Promotion
- Promotion Launch: Domino's is offering free Slice Sauce with any online purchase of Handmade Pan or Parmesan Stuffed Crust Pizza, aimed at enhancing customer experience and boosting sales, running until June 14.
- Product Enhancement: The new Slice Sauce is a creamy dip designed to elevate the flavor of every pizza bite, aligning with Domino's premium product positioning and expected to attract more consumers to try new flavors.
- Packaging Design: The sauce features premium black and gold packaging that complements the high-end black and gold boxes of the Handmade Pan and Parmesan Stuffed Crust Pizza, reflecting the brand's focus on product aesthetics and quality, thereby increasing consumer purchase intent.
- Limited Edition Goods: To celebrate the launch of the new sauce, Domino's is also offering exclusive black and gold Shinolatime timepieces and leather goods, aiming to draw consumer attention through unique merchandise, enhance brand image, and increase customer loyalty.
See More
Domino's Launches New Sauce Promotion
- Promotion Launch: Domino's introduces its new Slice Sauce, offering it for free with any online purchase of Handmade Pan or Parmesan Stuffed Crust pizzas until June 14, aiming to enhance customer experience and stimulate sales growth.
- Premium Product Packaging: The newly launched Handmade Pan and Parmesan Stuffed Crust pizzas feature black and gold packaging, highlighting their premium positioning to attract quality-seeking consumers and enhance brand image.
- Exclusive Merchandise Collaboration: Domino's partners with Shinola to offer a curated selection of black and gold watches and leather goods, further enhancing the brand's luxury appeal and attracting high-end customer segments to boost loyalty.
- Market Strategy Adjustment: Through this promotional campaign, Domino's not only increases product value but also strengthens its differentiation advantage in the highly competitive fast-food market with premium packaging and exclusive merchandise collaborations.
See More
Domino's Launches Free Sauce Promotion
- Free Sauce Giveaway: Domino's is offering its new Slice Sauce for free with any online purchase of Handmade Pan or Parmesan Stuffed Crust Pizza until June 14, aiming to enhance customer dining experiences and boost sales.
- Luxury Collaboration: To celebrate the launch of the new sauce, Domino's has partnered with Shinola to offer a curated collection of black and gold timepieces and leather goods, providing exclusive discounts to customers who order specific pizzas, thereby enhancing brand image and customer loyalty.
- Market Positioning: The Slice Sauce features a creamy and zesty flavor with a hint of Parmesan, targeting consumers seeking high-quality dining experiences, which is expected to drive sales growth in premium products.
- Digital Sales Leadership: In 2025, Domino's generated over 85% of its U.S. retail sales through digital channels, and the introduction of the new sauce and collaborative product line will further solidify its leadership in the digital marketplace.
See More
