Domino's Pizza, Inc. stock research
FY2025 Q1
Domino's Pizza (DPZ) Gross Margin — Quarter Ended Mar 23, 2025
Revenue remained stable compared with the prior quarter and the same quarter last year, while gross profit improved relative to both periods. Cost of revenue was lower than the year-ago quarter but slightly higher than the prior quarter, leading to gross margin strengthening sequentially and year-over-year.
Gross margin takeaway
Quarter ended Mar 23, 2025 · FY2025 Q1
Revenue remained stable compared with the prior quarter and the same quarter last year, while gross profit improved relative to both periods. Cost of revenue was lower than the year-ago quarter but slightly higher than the prior quarter, leading to gross margin strengthening sequentially and year-over-year.
- The gross margin improved to a higher level compared with both the immediately preceding quarter and the same quarter one year earlier, driven by a favorable relationship between revenue and cost of revenue. Revenue was stable, while cost of revenue decreased compared with the prior year and increased less than proportionally relative to the sequential quarter.
- Gross margin strengthened from the preceding quarter and from the same quarter a year ago, reflecting higher gross profit on stable revenue. Cost of revenue was lower than the year-earlier period but slightly above the sequential period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.8%
Gross profit
$443.1M
Revenue
$1.1B
Cost of revenue
$668.9M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+1.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 24, 2024 | $1.1B | $421.9M | $662.8M | 38.9% |
| Jun 16, 2024 | $1.1B | $437.0M | $660.7M | 39.8% |
| Sep 8, 2024 | $1.1B | $423.7M | $656.4M | 39.2% |
| Mar 23, 2025 | $1.1B | $443.1M | $668.9M | 39.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 8, 2024
+0.6 pts
Year-over-year change
Mar 24, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved to a higher level compared with both the immediately preceding quarter and the same quarter one year earlier, driven by a favorable relationship between revenue and cost of revenue. Revenue was stable, while cost of revenue decreased compared with the prior year and increased less than proportionally relative to the sequential quarter.
Gross margin strengthened from the preceding quarter and from the same quarter a year ago, reflecting higher gross profit on stable revenue. Cost of revenue was lower than the year-earlier period but slightly above the sequential period.
Monitor cost of revenue relative to revenue in upcoming quarters, as its movement has been mixed against a stable revenue base.