Insights 
VT 
Domino’s Pizza posted quarterly earnings of $4.08 per share, exceeding the Zacks Consensus Estimate of $3.96 per share. This marked a 3.03% positive earnings surprise, though slightly lower than last year’s $4.19 per share.
The company reported revenues of $1.15 billion for the quarter ending September 2025, surpassing the Zacks Consensus Estimate by 0.68%. Compared to last year’s $1.08 billion, Domino’s has exceeded revenue estimates in two of the last four quarters.
Domino’s Pizza shares have decreased by about 2.7% this year, unlike the S&P 500’s gain of 13.1%. The impending stock movement will largely rely upon management’s statements in the forthcoming earnings call.
The Zacks Rank for Domino’s is currently #3 (Hold), suggesting its shares will likely perform in line with the market soon. The consensus EPS estimate for the next quarter stands at $5.55 with $1.54 billion in revenues.
In the Retail – Restaurants sector, which ranks in the bottom 16% according to Zacks, Papa John’s is expected to announce its earnings on November 6 with anticipated earnings of $0.40 per share. This reflects a 7% decline from the previous year.
As of October 14, 2025, we see that Domino’s delivered a solid beat on both earnings and revenue for the third quarter. This outperformance is a positive signal, especially after the company missed expectations in the prior quarter. However, we must consider that the stock has underperformed the S&P 500 all year, which suggests this good news may not be enough to reverse the trend on its own.
The options market was pricing in a roughly 6% move for the stock around this earnings event. With the news now released, we’ve seen implied volatility for November options fall from over 45% to near 32%, a classic post-earnings volatility crush. For traders, this means strategies that benefit from falling volatility, such as selling straddles, could become attractive if the stock stabilizes after its initial reaction.
We are also cautious because the broader restaurant industry is facing headwinds. Recent data from the U.S. Bureau of Economic Analysis showed a slight cooling in consumer spending on food away from home in September 2025. This backdrop makes it challenging for any stock in the sector to sustain a major rally, even with a strong quarterly report.
Looking ahead, we need to listen closely to management’s conference call for guidance on the fourth quarter and any commentary on rising input costs. Furthermore, the earnings report from competitor Papa John’s on November 6 will be a critical data point for the entire industry. How their results compare will influence sentiment and could present pairs trading opportunities between the two stocks.
