Dominos Pizza — Business Overview
What does Domino's do?
Domino's is the world's largest pizza chain, operating almost entirely through a franchise model. As of December 28, 2025, the company had more than 22,100 locations across more than 90 countries, with approximately 99% of those stores owned and operated by independent franchisees. Domino's own roughly 262 stores directly in the U.S., primarily used as training and testing sites. The menu centers on pizza in various sizes and crust styles, complemented by wings, bread products, pasta, sandwiches, and desserts.
The company reports three distinct business segments:
| Segment | 2025 Revenue | Share of Total | What it does |
|---|---|---|---|
| Supply Chain | $2.99 billion | 60.5% | Manufactures and delivers fresh dough and food products to U.S. and Canadian stores |
| U.S. Stores | $1.61 billion | 32.6% | Collects royalties and fees from 6,924 U.S. franchised stores; also runs 262 company-owned stores |
| International Franchise | $338.7 million | 6.9% | Collects royalties from more than 14,900 stores across 90+ international markets |
How does Domino's make money?
Domino's runs an asset-light franchise model where most revenue comes not from selling pizza directly, but from selling supplies and collecting royalties. U.S. franchisees pay a 5.5% royalty on all sales, plus technology fees, and contribute 6.0% of sales into a national advertising fund. International master franchisees pay a lower average royalty of around 3.0%. Because the international segment requires almost no cost of sales or overhead to operate, nearly all of its royalty revenue flows directly to profit.
The supply chain segment is the single largest revenue line, though it carries lower margins than franchising. Domino's operates 22 regional dough and supply chain centers plus two thin-crust facilities in the U.S., along with five centers in Canada. These centers make fresh dough daily and distribute food to more than 7,800 stores. Franchisees are not required to buy from Domino's, but the company incentivizes participation through profit-sharing arrangements that pass 50% of supply chain pre-tax profits back to participating franchisees. Cheese is the largest single food cost and is priced to franchisees using a formula tied to the Chicago Mercantile Exchange, meaning supply chain revenue can fluctuate with commodity prices while dollar-level margins stay relatively stable.
What market does Domino's operate in?
Domino's competes in the U.S. Quick Service Restaurant (QSR) pizza category, a market worth $43.4 billion in 2025, up from $42.8 billion in 2024. The category is primarily delivery and carryout — dine-in is a smaller portion. Domino's holds approximately 23.3% total U.S. QSR pizza market share by consumer spending, making it the number-one brand, ahead of Pizza Hut, Papa John's, and Little Caesars. Its delivery share alone stands at 32.9%, and carryout at 19.6%. The four largest chains together account for about 61% of delivery and 51% of carryout; the rest is fragmented across regional and independent operators.
Internationally, the filing notes that demand for pizza delivery and carryout is large and growing, driven by consumers' increasing preference for convenience. Domino's has been operating internationally for more than 40 years and sees this as an ongoing growth opportunity. Third-party delivery aggregators like Uber Eats and DoorDash represent both a competitive pressure and a channel, as Domino's has multinational agreements with both platforms to sell through their marketplaces.
Who are Domino's main competitors?
In the U.S., Domino's primary competitors are Pizza Hut, Papa John's, and Little Caesars, plus thousands of regional and local pizzerias. The company also competes more broadly with all restaurants and with delivery aggregators for customers' attention and spending. Competition turns on price, convenience, speed, technology, and brand recognition.
Domino's claims several structural competitive advantages. Its stores are smaller and cheaper to build than traditional restaurants, with no full-service dine-in requirement. Fresh dough manufactured and delivered centrally removes a burden from individual operators and ensures consistency. More than 85% of U.S. retail sales in 2025 came through digital channels, which the company cites as a technology lead over most competitors. Its "fortressing" strategy — deliberately adding new locations within existing delivery areas to reduce delivery times and improve carryout convenience — is designed to entrench its position market by market. The Domino's Rewards loyalty program and a proprietary point-of-sale system (Domino's PULSE) are also cited as differentiators.
Where does Domino's operate?
Domino's has a genuinely global footprint, with roughly two-thirds of its store count outside the United States. As of December 28, 2025, there were 7,186 U.S. stores and 14,956 international stores. The ten largest international markets — India (2,396 stores), UK (1,325), China (1,321), Mexico (990), Japan (773), Turkey (761), Australia (734), Canada (650), South Korea (488), and France (437) — together account for about 66% of the international store base.
International stores are almost entirely operated through master franchise agreements, where a single company holds the rights to develop and sub-franchise an entire country or region. Eight of the ten largest international markets are run by publicly traded master franchise companies. The largest single franchisee globally, Domino's Pizza Enterprises (ASX: DMP), operates 3,524 stores across 12 markets including Australia, Japan, and France, representing 16% of the global store count — though it accounts for only 1.4% of Domino's consolidated revenues, since the international segment collects only royalties rather than supply chain sales from these markets.
Manufacturing and supply chain operations are concentrated in North America, with 22 U.S. and 5 Canadian distribution centers supplying fresh dough and food to domestic stores. International master franchisees typically run their own supply chain operations in their respective markets.