Financial Analysis

10. Asset Acquisitions and Dispositions During the second quarter of 2026, the Company refranchised 77 U.S. Company-owned stores in Virginia and Michigan for proceeds of $ 19.8 million, of which $ 7.4 million was received in cash during the second quarter of 2026. The remaining $ 12.4 million represented non-cash investing activities and was included in prepaid expenses and other assets in the Companys condensed consolidated balance sheet, and was collected subsequent to the end of the second quarter of 2026. The pre-tax refranchising gain associated with the sale of the related assets and liabilities, including a $ 2.8 million reduction in goodwill, was $ 4.1 million and recorded in refranchising gain in the Companys condensed consolidated statements of income. During the first quarter of 2026, the Company sold its fully depreciated corporate aircraft for net proceeds and a pre-tax realized gain of $ 7.8 million. During the second quarter of 2025, the Company refranchised 36 U.S. Company-owned stores in Maryland for proceeds of $ 8.5 million. The pre-tax refranchising gain associated with the sale of the related assets and liabilities, including a $ 1.4 million reduction in goodwill, was $ 3.9 million and was recorded in refranchising gain in the Companys condensed consolidated statements of income. During the first quarter of 2025, the Company purchased two U.S. franchised stores from one of the Company s former U.S. franchisees for $ 0.9 million, which was paid in the seco …

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5. Fair Value Measurements Fair value measurements enable the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair Value of Cash Equivalents and Marketable Securities The fair values of the Companys cash equivalents and investments in marketable securities are based on quoted prices in active markets for identical assets. Fair Value of Investments The Company holds a non-controlling interest in DPC Dash Ltd (DPC Dash), the Companys master franchisee in China that owns and operates Dominos Pizza stores in that market. The Company accounts for its investment in DPC Dash as a trading security and records it at fair value at the end of each reporting period, with gains and losses recorded in other income or expense in its condensed consolidated statements of income. As of June 14, 2026 and December 28, 2025 , the fair value of the Companys investment in DPC Dash ordinary shares is based on the active exchange quoted price for the equity security (H …

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7. Revenue Disclosures Contract Liabilities Contract liabilities primarily consist of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $ 4.9 million and $ 4.8 million were included in current other accrued liabilities as of June 14, 2026 and December 28, 2025, respectively. Deferred franchise fees and deferred development fees of $ 12.5 million were included in long-term other accrued liabilities as of both June 14, 2026 and December 28, 2025. Changes in deferred franchise fees and deferred development fees for the two fiscal quarters of 2026 and 2025 were as follows: Two Fiscal Quarters Ended June 14, June 15, 2026 2025 Deferred franchise fees and deferred development fees, beginning of period $ 17,318 $ 20,946 Revenue recognized during the period ( 3,129 ) ( 3,046 ) New deferrals due to cash received and other 3,218 1,675 Deferred franchise fees and deferred development fees, end of period $ 17,407 $ 19,575 Advertising Fund Assets As of June 14, 2026, advertising fund assets, restricted of $ 119.4 million consisted of $ 94.1 million of cash and cash equivalents, $ 17.0 million of accounts receivable and $ 8.3 million of prepaid expenses. As of June 14, 2026, advertising fund cash and cash equivalents included $ 1.6 million of cash contributed from U.S. Company-owned stores that had not yet been expended. As of December 28, 2025, advertising fund assets, restricted of $ 117.5 million consisted of $ 92.2 million o …

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2. Segment Information The Company has three reportable segments: (i) U.S. stores; (ii) supply chain; and (iii) international franchise. The Companys operations are organized by management on the combined basis of line of business and geography. The U.S. stores segment includes operations with respect to all franchised and Company-owned stores throughout the U.S. The supply chain segment primarily includes the distribution of food and, to a lesser extent, other products, from the Companys supply chain center operations in the U.S. and Canada. The international franchise segment includes operations related to the Companys franchising business in foreign markets. The Companys chief operating decision maker is its Chief Executive Officer, and beginning in the first quarter of 2026, he evaluates the performance of the Companys segments and allocates resources to them based on Segment Adjusted Income from Operations which represents income from operations for the reportable segments, excluding gains and losses from the sale of assets, refranchising gains and losses and certain corporate administrative costs that have not been allocated to a reportable segment. The Companys chief operating decision maker uses Segment Adjusted Income from Operations to determine future business objectives and targets and for long-range planning for the reportable segments, as well as to evaluate their operating performance. The tables below summarize the financial information, including revenues, si …

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4. Stockholders Deficit The following tables summarize the changes in stockholders deficit for the second quarter and two fiscal quarters of 2026. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 22, 2026 33,503,323 $ 335 $ 161 $ ( 3,902,172 ) $ ( 5,097 ) Net income 135,750 Dividends declared on common stock and equivalents ($ 1.99 per share) ( 66,162 ) Issuance and cancellation of stock awards, net 2,987 Tax payments for restricted stock upon vesting ( 163 ) 32 Purchases of common stock ( 443,917 ) ( 4 ) ( 12,795 ) ( 144,962 ) Exercise of stock options 6,615 1,086 Non-cash equity-based compensation expense 12,357 Currency translation adjustment ( 960 ) Balance at June 14, 2026 33,068,845 $ 331 $ 841 $ ( 3,977,546 ) $ ( 6,057 ) Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at December 28, 2025 33,627,992 $ 336 $ 1,910 $ ( 3,898,622 ) $ ( 4,766 ) Net income 275,561 Dividends declared on common stock and equivalents ($ 3.98 per share) ( 133,440 ) Issuance and cancellation of stock awards, net 92,868 1 Tax payments for restricted stock upon vesting ( 32,500 ) ( 305 ) ( 12,558 ) Purchases of common stock ( 632,221 ) ( 6 ) ( 24,888 ) ( 208,487 ) Exercise of stock options 12,706 2,978 Non-cash equity-based compensation expense 21,146 Currency translation adjustment ( 1,291 ) Balance at June 14, 2026 33,068,845 $ 331 $ 841 $ ( 3,977,546 ) …

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