NASDAQ Shariah screener · October 2026

Is Domino's Pizza, Inc. (DPZ) Halal?

FAIL

Domino's Pizza, Inc. · NASDAQ: DPZ · Consumer Discretionary

The short answer

Domino's Pizza, Inc. (NASDAQ: DPZ) fails this Shariah screener: its pizza delivery and franchising business is not in a prohibited industry, and its separately disclosed interest income is only about 0.2% of revenue (under the 5% ceiling), but its interest-bearing debt is about $4.88 billion — roughly 49.3% of its ~$9.91 billion market cap, well above the 33% ceiling.

Gate 1 — Business activity: PASS

Domino's Pizza, Inc., based in Ann Arbor, Michigan, calls itself the largest pizza company in the world in its Q2 2026 earnings release. Its Q2 2026 Form 10-Q (filed July 20, 2026) organizes the business into three reportable segments: (i) U.S. stores (franchised and Company-owned stores), (ii) supply chain (distribution of food and other products from U.S. and Canadian supply chain centers), and (iii) international franchise. As of June 14, 2026, the system counted 22,531 stores — 7,231 in the U.S. and 15,300 internationally.

Business screen (factual, from the filing): the core business is pizza delivery and carryout franchising, plus the food-distribution supply chain that serves it — not conventional banking, lending, or insurance, and not alcohol, pork production, tobacco, weapons, or gambling. The 10-Q discloses no haram revenue segment. Gate 1 passes on the facts. Facts only.

Gate 2 — Debt and cash: FAIL

Per Domino's Q2 2026 Form 10-Q (Condensed Consolidated Balance Sheet at June 14, 2026; $ thousands; filed July 20, 2026), interest-bearing debt was: current portion of long-term debt $7,423K + long-term debt, less current portion $4,876,221K = $4,883,644K (~$4.88B). Operating lease liabilities ($45,964K current + $193,245K long-term) are excluded. The debt is largely securitization notes collateralized by franchise-related agreements, distribution agreements, and intellectual property contributed to securitization entities. Stockholders' deficit stood at -$3,982.4M, reflecting the leveraged recapitalized capital structure.

Against a market cap of ~$9.91B (americanbankingnews, October 1, 2026; price ~$295), the debt-to-market-cap ratio is about 49.3%, above the 33% ceiling. Cash and cash equivalents ($164.8M) were about 1.7% of market cap. Gate 2 fails.

Gate 3 — Non-compliant income: PASS

Domino's Condensed Consolidated Statements of Income separately disclose an "Interest income" line: $4,115K for the two fiscal quarters ended June 14, 2026, against total revenues of $2,345,021K — about 0.18%, below the 5% non-compliant income ceiling. Interest expense ($92,284K) is disclosed on its own separate line. Gate 3 passes.

Key figures used

Business: Domino's Pizza, Inc. (Ann Arbor, Michigan); the largest pizza company in the world per its Q2 2026 earnings release; 22,531 stores as of June 14, 2026 (7,231 U.S., 15,300 international); three reportable segments — U.S. stores, supply chain, international franchise (10-Q Note 2, Segment Information)
Gate 1: pizza delivery/carryout franchising plus food-distribution supply chain — not conventional banking, lending, or insurance, and not alcohol, pork production, tobacco, weapons, or gambling; no haram revenue segment disclosed in the 10-Q; passes
Gate 2: interest-bearing debt $4,883.6M (current portion of long-term debt $7,423K + long-term debt, less current portion $4,876,221K, Q2 2026 10-Q balance sheet at June 14, 2026) vs ~$9.91B market cap (americanbankingnews, Oct 1, 2026) = ~49.3% (ceiling 33%) — fails; operating lease liabilities ($45,964K current + $193,245K long-term) excluded; stockholders' deficit of -$3,982.4M reflects the leveraged recapitalized capital structure
Gate 3: interest income $4,115K (separately disclosed line) / total revenues $2,345,021K for the two fiscal quarters ended June 14, 2026 = ~0.2% (ceiling 5%) — passes; interest expense ($92,284K) disclosed on a separate line
Third-party screeners: Zoya covers DPZ and rates it not Shariah-compliant (September 2026); Musaffa and ShariaPortfolio coverage of DPZ not found

Frequently asked questions

Is Domino's Pizza (DPZ) stock halal?

In this screener, DPZ fails: its pizza delivery and franchising business is not in a prohibited industry, and its interest income is only about 0.2% of revenue, but its interest-bearing debt of about $4.88 billion is roughly 49.3% of its ~$9.91 billion market cap — well above the 33% ceiling. This is a financial screen, not a religious ruling — consider consulting a qualified scholar for personal guidance.

What does Domino's Pizza do?

Domino's calls itself the largest pizza company in the world. It operates a franchise model across three segments — U.S. stores, supply chain (food distribution to stores in the U.S. and Canada), and international franchise — with 22,531 stores worldwide as of June 14, 2026 (7,231 in the U.S., 15,300 internationally).

How much debt does Domino's Pizza have?

Per its Q2 2026 10-Q (balance sheet at June 14, 2026), interest-bearing debt totaled about $4.88 billion — $7.4 million current portion plus $4,876.2 million long-term, largely securitization notes backed by franchise and distribution agreements. That is roughly 49.3% of its ~$9.91 billion market cap, above the 33% ceiling.

Does Domino's Pizza earn interest income?

Yes, and it is separately disclosed. Domino's Q2 2026 income statement shows $4.1 million of interest income for the two fiscal quarters ended June 14, 2026, against $2,345.0 million of total revenues — about 0.2%, under the 5% ceiling.

What do other Shariah screeners say about DPZ?

Zoya covers DPZ and rates it not Shariah-compliant (September 2026). No Musaffa or ShariaPortfolio coverage of DPZ was found. This page reports each source's position without endorsing one.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).