Pizza Chains' Dividend Divide: Domino's Stalls, McDonald's Accelerates

Domino's Pizza and McDonald's have reported different dividend growth rates in their second-quarter results. While Domino's has held its payout flat since February, McDonald's raised its quarterly dividend to $1.93 from $1.86. This disparity reveals which pizza-and-burger giant may face a more challenging road ahead.

Domino's U.S. same-store sales grew just 0.1% compared to 3.4% a year ago, despite order counts rising in both delivery and carryout. The lower average check caused the slowdown, according to CFO Sandeep Reddy, who blamed a Premium Series that underperformed.

In contrast, McDonald's grew global comparable sales by 1.3%, with every segment posting positive comps. However, U.S. restaurant traffic fell, and sales declined in China and France.