Domino's Pizza, Inc. stock research
FY2025 Q3
Domino's Pizza (DPZ) Gross Margin — Quarter Ended Sep 7, 2025
Revenue remained stable compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved from the year-ago period, reflecting changes in the relationship between cost of revenue and gross profit.
Gross margin takeaway
Quarter ended Sep 7, 2025 · FY2025 Q3
Revenue remained stable compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved from the year-ago period, reflecting changes in the relationship between cost of revenue and gross profit.
- The strongest margin driver is the relative movement of cost of revenue. With revenue unchanged, the gross margin change is fully determined by the difference between gross profit and cost of revenue.
- Compared to the prior quarter, gross margin was lower as cost of revenue increased while gross profit decreased slightly. Compared to the same quarter last year, gross margin was higher, driven by a larger increase in gross profit relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.1%
Gross profit
$459.9M
Revenue
$1.1B
Cost of revenue
$687.2M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.9 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 |
|---|---|---|---|---|
| Sep 8, 2024 | $1.1B | $423.7M | $656.4M | 39.2% |
| Mar 23, 2025 | $1.1B | $443.1M | $668.9M | 39.8% |
| Jun 15, 2025 | $1.1B | $461.0M | $684.2M | 40.3% |
| Sep 7, 2025 | $1.1B | $459.9M | $687.2M | 40.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 15, 2025
-0.2 pts
Year-over-year change
Sep 8, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest margin driver is the relative movement of cost of revenue. With revenue unchanged, the gross margin change is fully determined by the difference between gross profit and cost of revenue.
Compared to the prior quarter, gross margin was lower as cost of revenue increased while gross profit decreased slightly. Compared to the same quarter last year, gross margin was higher, driven by a larger increase in gross profit relative to cost of revenue.
Monitor the trajectory of cost of revenue, as it directly impacts gross margin given stable revenue.