Domino's Pizza, Inc. (DPZ): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Domino's Pizza, Inc. prints money in 2025, and honestly, it's less about the pizza and more about the plumbing. As someone who's spent two decades in the trenches analyzing these models, I can tell you their real genius lies in the asset-light, franchise-heavy structure, supported by a supply chain that feeds over 21,000 locations globally. With over 85% of US sales now flowing through their proprietary digital channels, the game is clearly about tech and royalty collection, not just dough tossing. Dive into the nine blocks below to see precisely where the 5.5% royalty streams are generated and how they manage the near-term risk of aggregator dependence.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Domino's Pizza, Inc.'s operational strength, which relies heavily on external entities, primarily its vast network of independent operators and strategic tech alliances. This structure lets Domino's Pizza, Inc. scale without taking on all the capital risk of ownership.

Global Network of Independent Franchisees

The core of Domino's Pizza, Inc.'s model is its franchise system. As of the end of the second quarter of 2025, the system was comprised of independent franchise owners who accounted for 99% of Domino's stores. This global enterprise spanned more than 21,500 stores across over 90 markets. In the U.S. specifically, the store count reached 7,061 stores as of Q2 2025, following a net addition of 30 U.S. stores in that quarter alone. This heavy reliance on franchisees is supported by Domino's Pizza, Inc.'s robust supply chain, which generated higher supply chain revenues in Q2 2025, partly due to a 4.8% increase in food basket pricing to stores compared to Q2 2024.

The relationship is symbiotic; Domino's Pizza, Inc. provides the brand, system, and ingredients, while franchisees drive local execution and growth. For instance, U.S. franchise royalties and fees contributed to a 14.8% increase in income from operations in Q2 2025 (excluding currency impact).

• Franchise-owned stores as of Q2 2025: 99% of total stores.
• Total global stores as of Q2 2025: More than 21,500.
• U.S. stores as of Q2 2025: 7,061.
• Net U.S. store additions in Q2 2025: 30.

Strategic Third-Party Delivery Aggregators

Domino's Pizza, Inc. has strategically integrated with major third-party platforms to capture incremental sales, moving beyond its exclusive arrangement with Uber Eats, which ended May 1, 2025. The company is now fully rolled out on the two largest aggregators, including DoorDash, which began in May 2025. Management has a clear financial target for this channel, expecting these aggregator platforms to eventually drive $1 billion in annual sales. To give you context, the previous exclusive partnership with Uber Eats accounted for 3% of Domino's Pizza, Inc.'s $19.12 billion in sales for the 2024 fiscal year. This move is about expanding reach, especially in suburban and rural areas, while leveraging the brand's existing delivery network. It's a calculated expansion of their delivery footprint.

Long-Term Charitable Partner, St. Jude Children's Research Hospital

The partnership with St. Jude Children's Research Hospital is a significant non-financial relationship that drives brand affinity. For the 2024 fundraising cycle, which concluded in early January 2025, Domino's Pizza, Inc. customers donated over $18 million. This latest contribution brings the cumulative total raised since the partnership began to more than $143 million. The company has made a bold commitment to further this support, pledging to raise a total of $300 million by 2034. The $18 million raised in 2024 came from several sources, including over $8.9 million from the St. Jude Thanks and Giving campaign and over $8.7 million generated by customers rounding up their order totals.

Key Suppliers for Consistent, High-Volume Raw Materials and Ingredients

Domino's Pizza, Inc. maintains leverage over its supply chain by being one of the largest domestic bulk purchasers of key ingredients like flour, cheese, and sauce. The company mandates that franchisees purchase dough, cheese, and sauce from its corporate distribution centers to control quality. In 2024, the supply chain management segment-selling ingredients to franchisees-generated 62% of the company's $1.9 billion in revenue for that year. The commitment to sustainability is also evident; Domino's Pizza, Inc. is committed to no deforestation in primary deforestation-linked commodities by the end of 2025, and 100% of the palm oil in its pan pizza dough and bread sides is RSPO certified.

Here's a look at some of the major ingredient flows:

The company actively engages with its major suppliers, having kicked off a Supplier Sustainability Network with its three major suppliers in 2023 to discuss reducing emissions and implementing sustainable farming.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Key Activities

Operating the proprietary, integrated supply chain and commissaries

• Supply chain gross margin increased by 0.7 percentage points in the third quarter of 2025 compared to the third quarter of 2024.
• Supply chain revenues increased due to higher order volumes and a 3.3% increase in the Company's food basket pricing to stores in the third quarter of 2025 versus the third quarter of 2024.
• In the first quarter of 2025, the food basket pricing to stores increased by 4.8% compared to the first quarter of 2024.
• Roughly 60% of Domino's Pizza, Inc.'s revenue is generated by selling supplies and raw materials to its franchisees.

Aggressive digital transformation and e-commerce platform refresh in 2025

• Domino's Pizza, Inc. expects third-party delivery platforms to become a $1 billion sales driver.
• The company is executing upgrades to its e-commerce platform as of late 2025.
• The annual ICT spending for Domino's Pizza, Inc. was estimated at $225.3 million for 2024.

Global brand marketing and national value campaign execution

• U.S. same store sales rose 5.2% in the third quarter of 2025, driven in part by the 'Best Deal Ever' promotion.
• The 'Best Deal Ever' promotion, which offers almost any pizza with any topping for $9.99, began on August 25th.
• U.S. franchise advertising revenues in Q1 2025 reflected a return to the standard 6.0% advertising contribution rate, up from a temporary 5.75%.
• Global net store growth was 214 in the three fiscal quarters of 2025.

Product innovation, like the Q1 2025 Stuffed Crust pizza launch

• The Parmesan Stuffed Crust pizza launch was cited as contributing to sales growth in both the second and third quarters of 2025.
• The upgrade cost for the Stuffed Crust under the Mix-and-Match category is $4, which helps drive higher tickets.
• The company reported global retail sales of $4,669.8 million in the second quarter of 2025.
• Diluted Earnings Per Share (EPS) was $4.08 in the third quarter of 2025.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Key Resources

Proprietary technology platform:

• Over 85% of US sales are digital as of Q2 2025.

Integrated, efficient supply chain and distribution centers:

Global store footprint:

• Global enterprise of more than 21,700 stores as of the end of the third quarter of 2025.

Domino's Rewards loyalty program:

• 35.7 million active members at the end of 2024.
• 30 million customers on its loyalty program in China as of June 2025.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Value Propositions

Speed and convenience via digital ordering and GPS tracking

Domino's Pizza, Inc. delivers speed, which is a critical driver of customer satisfaction; overall satisfaction was reported to be 64% higher when customers were satisfied with the speed of service. A study in April 2025 found Domino's had an average delivery time of 26:10 minutes across major chains. For Domino's Pizza Group, average delivery times improved to 24.3 minutes in Q1 2025, down from 25.1 minutes in Q1 2024. The digital backbone supports this, with AI-powered forecasting models now predicting order completion times with 95 percent accuracy, a significant jump from previous 75 percent accuracy rates. The company began rolling out GPS delivery tracking technology in U.S. stores in 2020.

Consistent, affordable value with the $6.99 Mix & Match deal

Value is a core proposition, evidenced by promotions like the 'Best Deal Ever' which drove positive order counts in the U.S. during Q3 2025. A specific carryout offer in June 2025 featured a large two-topping pizza for $6.99, which saved customers $1.00 compared to the usual $7.99 price for a large one-topping carryout pizza. Customers could upgrade to the Parmesan Stuffed Crust for an additional $3.00 per pizza on this deal. This follows a historical pattern where the carryout Mix & Match Deal price increased from $5.99 per item to $6.99 per item in October 2022.

Reliable, predictable product quality across the global system

Predictability extends to product consistency, supported by technology investments. Stores implementing computer vision technology report 15 percent improvements in overall product quality when compared to locations relying only on manual quality control. The company's global enterprise of more than 21,700 stores in over 90 markets relies on this standardization to ensure customers receive a similar product experience worldwide. The food basket pricing to stores increased 3.3% in Q3 2025 compared to Q3 2024, reflecting managed input costs across the system.

You're looking at how the pieces fit together to deliver that consistent pizza experience. Here's a quick look at some recent operational scale and performance metrics:

The accessibility proposition is reinforced by the sheer scale of the operation. As of the third quarter of 2025, Domino's operated more than 21,700 stores across more than 90 international markets. In that same quarter, the company added 185 net new stores internationally and 29 in the U.S., contributing to a global net store growth of 214 units. Furthermore, the CEO confirmed in Q2 2025 that the company was fully rolled out on the two largest aggregators, broadening the channels through which customers can place orders.

The digital ordering platform is central to this accessibility, as evidenced by the strong performance in the carryout business, which grew U.S. same-store sales by 19.6% in Q3 2022 compared to the year-ago period, showing the channel's historical strength. The company's system is comprised of independent franchise owners who accounted for 99% of Domino's stores as of the end of Q3 2025.

Finance: draft 13-week cash view by Friday.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Customer Relationships

You're looking at how Domino's Pizza, Inc. keeps its massive customer base engaged, and honestly, it's all about the screen first. The relationship is heavily automated, which is how they manage their scale of over 21,700 stores across more than 90 markets.

Automated self-service through proprietary digital channels

The core of the customer interaction happens on the app and website. This digital-first approach is not new, but it's deepening its hold. As of Q2 2025, digital order penetration in the U.S. stood at 85%, a figure they maintained through Q3 2025. This means the vast majority of orders bypass the phone entirely, relying on proprietary platforms for ordering, tracking, and payment.

The company's global retail sales over the trailing four quarters ending Q3 2025 reached $19.7 billion. This massive volume is funneled through these digital assets, which Domino's Pizza, Inc. has been actively upgrading, planning a revamped website and app rollout throughout 2025 to further streamline this self-service experience.

Personalized engagement via the loyalty program and targeted offers

The Domino's Rewards program is a key tool for capturing and retaining these digital users. Membership hit 35.7 million members by the end of 2024. The structure is simple: customers earn a free pizza every 6 purchases. This program is specifically targeting 'light users' and carryout customers to drive frequency. The success is visible in the comparable sales figures; carryout comps in Q3 2025 were up 8.7%, partially attributed to the loyalty program's growth. In Q2 2025, the loyalty program also helped drive a 5.8% increase in carryout comps.

Here's a quick snapshot of the digital and loyalty metrics we are tracking:

Transactional, driven by frequent value-based promotions

To drive immediate traffic, Domino's Pizza, Inc. relies heavily on aggressive, value-based promotions that are explicitly tied to digital ordering. The 'Best Deal Ever' promotion, offering almost any pizza with any topping for $9.99, was a major driver in Q3 2025. This deal is structured to funnel customers to the app, as it excludes phone and in-store orders. The impact was clear: U.S. same-store sales grew 5.2% in Q3 2025, with price contributing 1.3% to the average ticket. Franchisees even asked management to extend the promotion past its original plan, showing strong store-level economics supporting the deal.

High-touch problem resolution at the local store level

While the digital channels handle the bulk of transactions, the final mile of service and issue resolution defaults to the local store level. With a system comprised of independent franchise owners accounting for 99% of the stores as of Q3 2025, the relationship management involves supporting this vast network of owner-operators. The U.S. system store count reached 7,090 by the end of Q3 2025. This local structure means that while the digital experience is standardized, direct customer service issues are managed by the local franchisee team, which is incentivized by the strong unit economics.

Finance: draft 13-week cash view by Friday.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Channels

You're looking at how Domino's Pizza, Inc. gets its product into the customer's hands, and it's a multi-pronged approach that heavily favors digital control.

Franchised and company-owned brick-and-mortar stores

The physical footprint remains the backbone, though it is overwhelmingly franchised. As of the end of the third quarter of 2025, Domino's Pizza, Inc. operated more than 21,700 stores across over 90 international markets. 99% of the system is comprised of independent franchise owners as of the end of the second quarter of 2025. Specifically within the United States, the network stood at approximately 7,043 locations, broken down into about 6,751 franchise-owned outlets and 292 company-owned locations based on the latest available data. The company continues to refine this mix; for instance, Domino's Pizza, Inc. refranchised 36 company-owned stores in Maryland during the second quarter of 2025. Store expansion remains a focus, with Q3 2025 reporting 29 net store openings in the U.S. and 185 net openings internationally, totaling 214 global net store additions for that quarter.

Here's a quick look at the physical scale:

Domino's proprietary mobile app and website (primary channel)

This is where Domino's Pizza, Inc. exerts the most control over the customer experience and data. The company's strategy is heavily tech-driven. In the U.S., the digital channels-the proprietary mobile app and website-are the dominant ordering method. Domino's Pizza, Inc. generated more than 85% of U.S. retail sales via these digital channels in 2024, a figure that remains central to their 'Hungry for MORE' strategy. They actively push customers to these platforms with digital-only promotions, such as a limited-time offer for 50 percent off all menu-priced pizzas ordered online through December 7, 2025. This channel excludes phone and in-store orders from the discount.

The focus on proprietary digital ordering helps drive loyalty program engagement, which is a key sales driver.

Third-party delivery platforms (DoorDash, Uber Eats)

Domino's Pizza, Inc. has integrated with major third-party aggregator platforms to capture broader consumer reach, though these sales are secondary to their owned channels. The third quarter of 2025 marked the first full quarter the chain was on DoorDash nationally, following its earlier partnership with Uber Eats. This expanded reach is showing results in delivery performance. For U.S. delivery same-store sales (comps) in Q3 2025, growth was 2.5%. This followed a 1.5% increase in delivery comps in Q2 2025. An analyst noted that the DoorDash partnership doubled third-party delivery sales to about 5% of online sales by mid-2025. The company expects volume through DoorDash to grow further, given its larger market size compared to Uber Eats.

In-store carryout, a growing focus for value customers

Carryout has become a significant growth engine, particularly for value-conscious customers engaging with the loyalty program. This channel has consistently outpaced delivery comps over recent quarters. In the second quarter of 2025, U.S. carryout comps rose 5.8%, marking the highest quarter of average carryout orders in the company's history. This momentum continued into the third quarter of 2025, where carryout comps were up 8.7%, partially driven by the growth of the Domino's Rewards loyalty program. This strong performance contrasts with the delivery channel's 2.5% growth in the same quarter. The company expects comps for both delivery and carryout to remain positive throughout 2025.

Here's the channel performance comparison for Q3 2025:

• U.S. Carryout Comps: Up 8.7%.
• U.S. Delivery Comps: Increased 2.5%.
• U.S. Same-Store Sales Growth (Total): Rose 5.2%.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Customer Segments

You're looking at who Domino's Pizza, Inc. is actually selling to as of late 2025. It's not just one group; it's a few distinct segments they are targeting with specific tactics. Honestly, the data shows they've successfully positioned themselves to capture value-seeking customers while leaning hard into digital convenience.

Price-sensitive middle-income consumers and families

This group is definitely feeling the pinch from persistent inflation and menu price hikes across the industry. Domino's Pizza, Inc. is actively catering to this budget-consciousness. They revived their $9.99 pizza offer in August 2025 and stuck with it longer than planned because it drove demand so well. This deal, which covers nearly any pizza with any topping across multiple crust types, directly addresses the need for value when dining out or ordering in. It's a clear signal that they understand this segment is curtailing spending.

Here's the quick math on how that value focus is working in the U.S. market:

Digital-native young adults (18-34) prioritizing speed and ease

For the younger, tech-savvy crowd, it's all about the transaction being seamless. Domino's Pizza, Inc. has built its core around this expectation. You see this in their U.S. operations where, as of 2024, more than 85% of retail sales were made through their app and website. This tech-driven model is central to their 'Hungry for MORE' strategy.

The focus on digital channels continues to pay off, especially with the integration of third-party platforms. The third quarter of 2025 was the first full quarter they were on DoorDash, which helps capture customers who prefer those aggregator platforms for speed and ease. This segment values the convenience that their robust supply chain and innovative ordering platforms provide.

• U.S. Digital Sales Share (2024 Data): >85% of U.S. retail sales
• Delivery Comps (Q3 2025): Increased 2.5%
• Global Enterprise Store Count (Q3 2025): Over 21,700 stores

International consumers, served with localized menu offerings

Domino's Pizza, Inc. is a truly global player, operating in over 90 markets. While the U.S. market is important, international growth is a key pillar. They serve these customers by adapting menus, which is crucial for local relevance. The global enterprise has grown to more than 21,700 stores as of the end of Q3 2025, with significant net store openings internationally in that quarter.

Still, international performance can be choppy, showing the need for localization. For instance, in Q3 2025, international same-store sales growth, excluding foreign currency impact, was only 1.7%, missing estimates of 1.9%. This contrasts with the U.S. growth of 5.2% that same quarter, but the international segment still saw 185 net store openings in Q3 2025, showing a commitment to physical expansion abroad.

Large groups and social occasions requiring bulk ordering

When people gather, pizza is a go-to, and Domino's Pizza, Inc. captures this through both delivery and carryout channels. The success of promotions like the $9.99 deal isn't just about individual value; it drives higher transaction counts suitable for groups. The carryout business, often associated with family pickups or smaller social events, showed significant strength in Q3 2025.

The loyalty program is also a key tool here, encouraging repeat, often larger, orders. This segment is served by the overall growth in store count and the focus on making ordering easy, whether for a few people or a larger party.

• Carryout Comparable Sales Growth (Q3 2025): Up 8.7%
• Loyalty Program Impact: Partially drove carryout growth
• Global Retail Sales (Trailing 4 Quarters ending Q3 2025): Over $19.7 billion

Finance: draft 13-week cash view by Friday.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive the engine room at Domino's Pizza, Inc. The cost structure is heavily weighted toward maintaining scale and driving digital relevance, which means significant upfront and ongoing investment.

High fixed costs for the proprietary supply chain infrastructure are a cornerstone. While a direct annual fixed cost figure isn't always broken out, the investment in the physical network that supports over 21,500 stores globally represents substantial, relatively fixed overhead. For context on the investment level, capital expenditures for the first three fiscal quarters of 2025 totaled $56.7 million, down from $70.8 million in the same period of 2024, showing a managed but still significant outlay in assets supporting operations.

Cost of food and ingredients (food basket price up 3.3% in Q3 2025) directly impacts the U.S. Company-owned store gross margin. The increase in the Company's food basket pricing to stores rose 3.3% during the third quarter of 2025 as compared to the third quarter of 2024. This price adjustment, alongside higher wage rates, caused the U.S. Company-owned store gross margin to decrease by 0.5 percentage points in Q3 2025 versus Q3 2024. However, supply chain gross margin still increased by 0.7 percentage points in Q3 2025, helped by procurement productivity offsetting some of that food basket cost increase.

Significant advertising and marketing fund expenditures are essential to drive traffic, especially with value promotions like the 'Best Deal Ever' at $9.99. The structure of these funds is also a cost consideration for franchisees and the company. For Domino's Pizza Group, starting July 1, 2025, the franchise partner contribution to the eCommerce fund increased to 1.0% of system sales from the previous 0.75%. Domino's Pizza Group will also contribute an additional 0.25% of system sales into that fund to cover increasing platform running costs.

Technology development and maintenance for digital platforms is a non-negotiable expense to maintain the omnichannel experience. For the Domino's Pizza Group system, there is a planned annual investment of approximately £4-5 million into the cost base specifically for continued stability and innovation of the technology platform, plus strengthening cyber security.

Here's a quick look at some key financial metrics from the Q3 2025 period that frame the cost environment:

The company's ability to grow income from operations by 12.2% in Q3 2025, despite commodity inflation pressures, shows that procurement productivity within the supply chain is a critical cost control lever. That said, the underlying U.S. Company-owned store gross margin still took a 0.5 percentage point hit.

Domino's Pizza, Inc. (DPZ) - Canvas Business Model: Revenue Streams

You're looking at how Domino's Pizza, Inc. actually brings in the money, which is heavily weighted toward its franchise partners. Honestly, the corporate entity acts more like a landlord and a supplier than a primary pizza seller these days.

The core of the Domino's Pizza, Inc. revenue engine is built on recurring fees from its vast global network of independent operators. As of the end of the third quarter of 2025, its system comprised of independent franchise owners accounted for 99% of Domino's Pizza, Inc.'s stores, which numbered over 21,700 globally.

Here's a breakdown of the primary revenue sources, using the most recent quarterly figures available:

• Franchise royalties and fees are a major component, with the standard royalty fee being 5.5% of a franchisee's weekly gross sales. International franchise royalties and fees were a key driver of the Q1 2025 revenue increase.
• Supply chain revenues from selling food and equipment to franchisees also contribute significantly. The increase in supply chain revenues in Q1 2025 was largely due to a 4.8% increase in the company's food basket pricing to stores compared to Q1 2024.
• Sales from company-owned stores remain a minor component of the overall revenue picture. In Q1 2025, U.S. Company-owned store revenue actually decreased by $1 million (or 1.1%) year-over-year.

For the first quarter of 2025, Domino's Pizza, Inc. reported total revenues of $1.11 billion. This revenue growth of 2.5% was primarily attributed to the combination of these franchise-related streams.

To give you a clearer picture of the financial health within these streams during Q1 2025, look at the gross margin performance:

Also, remember that franchise fees include more than just royalties. U.S. franchise advertising revenues increased in Q1 2025 partly because the standard advertising contribution rate of 6.0% returned in Q2 2024, up from the temporary 5.75% rate. That small percentage point difference on billions in sales adds up fast for corporate revenue.

Finance: draft 13-week cash view by Friday.