[Management View]
Domino's management emphasized strong execution of strategic initiatives, including the successful launch of Parmesan-stuffed-crust pizza and the national rollout of DoorDash aggregator partnerships. Key metrics included a 14.9% increase in income from operations (excluding foreign currency impact) and 5.6% global retail sales growth. The company highlighted its focus on franchisee economics, renowned value promotions, and operational excellence as drivers of sustained growth.

[Outlook]
Domino's reaffirmed its 2025 guidance, projecting global retail sales growth in line with 2024 and U.S. same-store sales growth of 3%, with stronger performance expected in the second half of the year. International same-store sales growth is forecasted at 1%-2%, with significant unit expansion planned in India and China. Management anticipates material contributions from DoorDash in Q3 and Q4 and expects operating income growth of approximately 8%, excluding foreign currency impacts.

[Financial Performance]
Domino's reported a 5.1% increase in U.S. retail sales, driven by a 3.4% rise in same-store sales and 30 net new store openings. Carryout comps grew 5.8%, setting a record for average quarterly carryout dollars, while delivery comps rose 1.5%. International retail sales increased 6%, supported by 148 net new stores and 2.4% same-store sales growth. Share repurchases totaled $150 million, with $614 million remaining authorized.

[Q&A Highlights]
Question 1: Analysts expressed concerns about sustaining 3%+ comps beyond 2025, given the current momentum from aggregator partnerships and menu innovations. How does Domino's plan to maintain growth longer-term?
Answer: CEO Russell Weiner highlighted Domino's decade-long track record of consistent market share gains, emphasizing the addition of aggregators, new menu items like stuffed crust, and a revamped loyalty program as long-term growth drivers. He noted that these initiatives are not one-year events but cumulative strategies that strengthen Domino's competitive position.

Question 2: What gives Domino's confidence in accelerating U.S. sales in the second half of 2025?
Answer: Management pointed to the "Best Deal Ever" promotion, the full rollout of DoorDash, and continued growth in carryout driven by the loyalty program. CFO Sandeep Reddy emphasized the positive impact of these initiatives on both delivery and carryout comps.

Question 3: Analysts questioned whether DoorDash could be a multi-year growth driver rather than creating tough comparisons in future years.
Answer: Management stated that DoorDash and Uber Eats are expected to contribute significantly to market share gains over time. Domino's aims to achieve its fair share on aggregator platforms, aligning with its overall market share outside aggregators.

Question 4: How is the Hungry for More strategy being adopted in international markets?
Answer: India was highlighted as a success story, with initiatives like new product launches, faster delivery times, and the removal of delivery fees driving strong performance. Similar adoption was noted in Canada and Mexico.

Question 5: Analysts inquired about international unit development and whether Domino's is on track to meet long-term growth targets.
Answer: Management expressed confidence in significant store openings in India and China, while acknowledging challenges in Japan due to closures. They emphasized the importance of strong unit economics and positive same-store sales for sustainable growth.

Question 6: How does Domino's view the current value-focused QSR environment?
Answer: Management stated that Domino's is well-positioned to thrive in a value-driven market due to its strong franchisee economics, supply chain efficiencies, and large advertising budget. They view current headwinds as tailwinds for Domino's.

Question 7: What is the impact of the stuffed crust pizza launch on traffic and ticket growth?
Answer: The launch exceeded expectations, driving incremental traffic and higher average tickets due to its premium price point. Management described stuffed crust as a long-term menu catalyst, not a limited-time offer.

Question 8: Analysts asked about the rollout of Domino's new e-commerce platform and its impact on consumer behavior.
Answer: Management reported positive results, with improved conversion rates and sales performance. They emphasized a cautious rollout to ensure a seamless transition.

Question 9: What factors are driving supply chain margin improvements, and can they be sustained?
Answer: Procurement productivity was cited as the primary driver, with gains expected to taper in magnitude over time. Management emphasized that these improvements are built into the base and will not reverse.

Question 10: Analysts questioned whether franchisee consolidation could accelerate U.S. growth.
Answer: Management stated that franchisee diversity is a strength, with no plans for significant consolidation. They highlighted the success of the recently refranchised Maryland market.

Question 11: How does Domino's pricing strategy align with its focus on renowned value?
Answer: Management outlined principles of consistency, quantitative research, and pricing below consumer income growth. They emphasized that renowned value drives both customer satisfaction and franchisee profitability.

Question 12: What is the rationale behind the "Best Deal Ever" promotion?
Answer: Management described the promotion as a combination of value and deliciousness, allowing customers to add up to seven toppings at a competitive price.

Question 13: Analysts asked about the long-term impact of stuffed crust pizza on market share.
Answer: Management expressed confidence in stuffed crust as a permanent menu item, driving both traffic and ticket growth. They view it as a key driver of market share gains within the pizza QSR category.

Question 14: How does Domino's view the current U.S. pizza segment's value push?
Answer: Management stated that Domino's is uniquely positioned to benefit from a value-focused market due to its strong economics and operational efficiencies.

Question 15: What is the expected impact of DoorDash and the revamped rewards program on growth?
Answer: Management anticipates significant contributions from DoorDash in the second half of 2025 and highlighted the rewards program's success in driving customer acquisition and higher tickets.

[Sentiment Analysis]
Analysts were generally positive, expressing confidence in Domino's strategic initiatives while seeking clarity on long-term growth sustainability. Management maintained an optimistic tone, emphasizing the strength of its franchisee economics, menu innovation, and aggregator partnerships.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|----------------------------|-----------------|-----------------|------------|
| U.S. Same-Store Sales | +3.4% | +2.0% | +1.4% |
| Global Retail Sales Growth | +5.6% | +4.8% | +0.8% |
| U.S. Net Store Growth | +30 stores | +25 stores | +5 stores |
| International Net Store Growth | +148 stores | +150 stores | -2 stores |
| Income from Operations | +14.9% | +12.5% | +2.4% |

[Risks and Concerns]
1. Potential macroeconomic and geopolitical uncertainties impacting international same-store sales growth.
2. Competitive pressures in the QSR pizza segment, particularly in the value-focused environment.
3. Execution risks associated with new initiatives, including aggregator partnerships and e-commerce platform rollout.

[Final Takeaway]
Domino's delivered strong Q2 2025 results, driven by strategic menu innovation and aggregator partnerships. The successful launch of Parmesan-stuffed-crust pizza and the full rollout of DoorDash are expected to drive sustained growth in the second half of the year. Management's focus on franchisee economics, renowned value, and operational excellence positions Domino's as a leader in the QSR pizza segment. While macroeconomic uncertainties remain, Domino's robust strategy and execution provide confidence in its ability to navigate challenges and capture market share.