Back to home
DPZ logo

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

NASDAQ Global SelectConsumer CyclicalRestaurants$11.32B2026-04-29
DPZ is Doubtful3/4 screens passed

Domino's Pizza passes the core business activity and liquidity screens, but it fails the financial screening due to excessive leverage. The company's debt-to-market cap ratio sits at an elevated 46.2%, well above the 33% AAOIFI threshold, rendering the stock currently doubtful for halal portfolios.

Price Chart (5D)

$317.68+7.05 (+2.27%)
2026-06-092026-06-02

DPZ — Last 7 Days

DateOpenHighLowCloseVolumeChange
2026-06-09313.53319.66312.21317.69590K+1.33%
2026-06-08310.92315.99308.73313.53738K+0.84%
2026-06-05309.67315.84307.96313.99879K+1.40%
2026-06-04311.37314.25305.35307.51746K-1.24%
2026-06-03307.24307.24300.25306.77762K-0.15%
2026-06-02310.11312.59307.00307.53531K-0.83%
2026-06-01311.33315.52309.17313.71707K+0.76%

Discussion

Sign in to join the discussion

Loading comments...

Shariah Screening Details for DPZ

Business Activity

Permissible

Domino's core business of selling pizzas, chicken, and sides is generally permissible, though investors must ensure regional franchise operations avoid non-halal meat and alcohol sales where applicable.

Debt / Market Cap

46.20%

Debt: $5.23BThreshold: ≤33%

Interest Income

0.30%

Interest: $14.9MThreshold: ≤5%

Cash & Securities

3.83%

Cash: $434.0MThreshold: ≤33%

About Domino's Pizza, Inc. (DPZ)

Domino's Pizza, Inc. is a global leader in the quick-service restaurant industry, operating over 18,800 company-owned and franchised stores across 90 markets. The company generates its revenue primarily through the sale of pizzas, oven-baked sandwiches, chicken wings, and its extensive supply chain operations.

For Muslim investors, DPZ currently holds a Doubtful status based on AAOIFI Shariah standards. While its core food operations and low interest income levels (0.30%) easily pass Islamic guidelines, the stock fails the critical debt screening, making it unsuitable for strict halal portfolios at this time.

The primary concern from an Islamic finance perspective is Domino's heavy reliance on interest-bearing debt. Its debt-to-market capitalization ratio currently stands at 46.2%, significantly breaching the 33% maximum limit allowed for Shariah-compliant investments.

Beyond the financial ratios, investors should also note that while the overarching business model is permissible, international franchise locations may utilize non-halal meats depending on local market norms. Those monitoring this stock should watch for substantial debt reduction before considering it for a compliant portfolio.

CEO

Russell J. Weiner

Employees

10,200

IPO Date

2004-07-13

Headquarters

Ann Arbor, MI, US

DPZ Key Financial Statistics

Revenue

$4.94B

Net Income

$601.7M

EPS (Diluted)

$17.57

Stock Price

340.46

Beta

1.19

52-Week Range

328.74-499.08

Total Debt

$5.23B

Total Equity

$-3.90B

Current Ratio

1.65

DPZ Financial Health & Profitability

Profit Margins

Gross Margin40.0%
Operating Margin19.3%
Net Margin12.2%

Revenue Growth (YoY)

+5.0%

Prior year: $4.71B

Net Debt

$4.80B

Cash: $434.0M — Debt: $5.23B

Frequently Asked Questions About DPZ

Is DPZ (Domino's Pizza, Inc.) stock halal to invest in?
Based on our AAOIFI-standard shariah screening, DPZ is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in DPZ.
What does Domino's Pizza, Inc. do?
Domino's Pizza, Inc. is a global leader in the quick-service restaurant industry, operating over 18,800 company-owned and franchised stores across 90 markets. The company generates its revenue primarily through the sale of pizzas, oven-baked sandwiches, chicken wings, and its extensive supply chain operations. For Muslim investors, DPZ currently holds a Doubtful status based on AAOIFI Shariah standards. While its core food operations and low interest income levels (0.30%) easily pass Islamic guidelines, the stock fails the critical debt screening, making it unsuitable for strict halal portfolios at this time. The primary concern from an Islamic finance perspective is Domino's heavy reliance on interest-bearing debt. Its debt-to-market capitalization ratio currently stands at 46.2%, significantly breaching the 33% maximum limit allowed for Shariah-compliant investments. Beyond the financial ratios, investors should also note that while the overarching business model is permissible, international franchise locations may utilize non-halal meats depending on local market norms. Those monitoring this stock should watch for substantial debt reduction before considering it for a compliant portfolio. Domino's Pizza, Inc. operates in the Consumer Cyclical sector under the Restaurants industry and is headquartered in Ann Arbor, MI, US. The company is led by CEO Russell J. Weiner and employs approximately 10,200 people.
What screening criteria were used for DPZ?
DPZ was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. DPZ passed 3 of these 4 screens.
When was DPZ last screened?
DPZ was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.

Disclaimer

This shariah compliance assessment for DPZ (Domino's Pizza, Inc.) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-04-29.

Other Screened Stocks in Consumer Cyclical