Domino’s Pizza announces $1 billion debt refinancing plan

Published 06/08/2025, 13:08
© Reuters.

ANN ARBOR, Mich. - Domino’s Pizza, Inc. (NASDAQ:DPZ), currently trading at $447.13 and valued at $15.18 billion by market capitalization, announced Wednesday that its subsidiaries plan to issue $1 billion in new securitized notes as part of a debt refinancing transaction. According to InvestingPro analysis, the company appears slightly overvalued at current levels.

The pizza chain intends to use the proceeds from the 2025 Notes, along with approximately $150 million in cash, to retire approximately $1.14 billion of existing debt obligations. This includes the full prepayment of its 2015-1 and 2018-1 Fixed Rate Senior Secured Notes, as well as any outstanding amounts under its current variable funding notes. With total debt standing at $5.21 billion and a current ratio of 0.6, InvestingPro data shows the company’s short-term obligations exceed its liquid assets.

The company also expects to establish a new $320 million variable funding note facility, which will replace its existing facilities totaling $320 million. As of June 15, Domino’s had approximately $56.4 million in outstanding letters of credit and no outstanding borrowings under the existing facilities.

"The consummation of the note offering is subject to market and other conditions and is anticipated to close in the third quarter of 2025," the company stated in a press release.

The notes to be offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption.

Domino’s Pizza operates more than 21,500 stores across over 90 markets globally. The company reported global retail sales exceeding $19.4 billion in the trailing four quarters ended June 15, 2025, with revenue of $4.78 billion and EBITDA of $965 million. Independent franchise owners accounted for 99% of Domino’s stores as of the end of the second quarter of 2025. For deeper insights into Domino’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Domino’s Pizza has captured attention with its latest financial performance and analyst evaluations. RBC Capital maintained its Outperform rating with a $550 price target after Domino’s reported stronger-than-expected same-store sales growth in both U.S. and international markets for the second quarter. The company also exceeded earnings forecasts before interest and taxes, aided by reduced general and administrative expenses. BMO Capital reiterated its Outperform rating with a $540 price target, despite Domino’s reporting second-quarter earnings per share of $3.81, which fell short of the consensus estimate of $3.94. UBS also maintained its Buy rating with a $540 price target, citing strong sales momentum and better-than-expected same-store sales despite macroeconomic challenges. The company continues to project approximately 8% operating income growth for 2025, driven by global retail sales growth. TD Cowen reiterated its Buy rating with a $510 price target, expressing confidence in Domino’s future same-store sales growth and improved execution. These developments underscore the varied analyst perspectives on Domino’s Pizza, reflecting both optimism and caution in the current market environment.

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