By Evie Liu

As American restaurants struggle with weaker consumer spending, companies with large markets outside of the U.S., such as Domino's Pizza, could stay more resilient.

The pizza chain reported on Monday a total revenue of $1.11 billion in the first quarter of 2025, up 2.5% from the same period last year. However, Domino's came in under the $1.13 billion that Wall Street analysts polled by FactSet expected.

Earnings came in at $4.33 per share, up 21% from a year ago and beating the consensus expectation of $4.06. Part of the per-share earnings growth was due to share repurchases during the past four quarters, according to the company.

Domino's first-quarter revenue growth was primarily driven by higher franchise advertising revenues in the U.S., higher supply chain revenues spurred by franchisees who purchase food ingredients and other supplies from the chain, and higher international franchise royalties and fees, thanks to franchised stores' strong performance in the global market.

U.S. restaurants have been struggling to attract consumer traffic as inflation and recession fears make people dine out less. But Domino's large international exposure has made it a safer bet compared to other restaurant chains mostly focused on the domestic market.

In the first quarter, Domino's global retail sales increased 4.7% from a year ago to reach $4.46 billion. Much of the growth was driven by strong performance in the international markets: Same-store sales declined 0.5% in the U.S., but increased 3.7% overseas. International revenue growth was partially offset by the weakness in foreign currency, however.

"Sustained market share growth reflects a company's ability to control what is under its control, a key to long term success," said CEO Russell Weiner in a statement. "In the face of a challenging global macroeconomic environment, our Hungry for MORE strategic pillars are working together to drive MORE sales, MORE stores and MORE profits, annually."

The company did not give an outlook guidance for 2025. Domino's stock has gained 12% in 2025, while shares of domestic-focused restaurant peers Chipotle and Wendy's have lost 14% and 21%, respectively . Domino's Pizza was a Barron's stock pick in December. Shares have climbed 14% since then.

Write to Evie Liu at evie.liu@barrons.com

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April 28, 2025 06:08 ET (10:08 GMT)

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