Domino’s Pizza Inc (NASDAQ:DPZ) shares are traded higher on Tuesday.
On Monday, the pizza giant reported second-quarter revenue of $1.15 billion, beating the analyst consensus estimate of $1.14 billion.
Revenues increased 4.3% year over year, primarily due to higher supply chain revenues, higher U.S. franchise royalties and fees, and higher U.S. franchise advertising revenues.
Here are the key analysts’ reactions to the earnings report:
- RBC Capital Markets analyst Logan Reich reiterated the Outperform rating on Domino’s with a price forecast of $550.
- Benchmark analyst Todd M. Brooks reiterated the Buy rating on Domino’s, raising the price forecast from $535 to $540.
Also Read: Domino’s Pizza Analysts Increase Their Forecasts After Q2 Earnings
RBC Capital Markets
Reich writes that Domino’s second quarter results beat consensus on both U.S. and international same‑store sales and delivered an EBIT upside on lower G&A.
Although FY25 SSS guidance was maintained—reflecting a cautious stance despite potential gains from a stable macro environment and strong stuffed‑crust and DoorDash, Inc. (NASDAQ:DASH) performance—the analyst is monitoring how long those idiosyncratic drivers will sustain growth, since U.S. SSS could slow in 2026 as those promotions lap, and has adjusted his estimates accordingly.
Reich notes that the company reaffirmed its international guidance despite headwinds at some master franchisees—highlighting strength in Canada, Mexico and India that offsets softness in Australia and Japan—and that management confirmed stores now have the floor space to add fryers, enabling further menu innovation.
Reich writes that October’s debt refinancing could shave roughly 2.4% off 2026 EPS, as consensus forecasts likely underappreciate the higher interest expense—about $20 million annually.
Benchmark
Brooks writes that, having completed the nationwide DoorDash rollout in the second quarter of 2025, Domino’s will now promote its availability on DoorDash (and Uber Eats) to drive fully incremental sales through 2Q26, supporting its goal of generating over $1 billion in additional revenue by capturing a 25% fair market share on aggregator platforms.
Brooks writes that investors are seeking greater visibility into future initiatives—despite strong new product launches, DoorDash momentum, market share gains, and 3.4% U.S. same‑store sales growth in the second quarter—and that until the third quarter call delivers detailed 2026 guidance, sentiment may continue to sway the stock.
The analyst also notes that, after Domino’s Pizza Enterprises closed 200 units in the first quarter of 2025, Domino’s expects a period to regain clarity on DPE’s forward unit growth, especially as a CEO search leaves its expansion strategy uncertain.
Warren Buffett’s Berkshire’s Stake In Domino’s
What has also worked for Domino’s Pizza stock recently is that Warren Buffett-owned Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) has increased its stake in the pizza maker.
According to its 13F filings, Berkshire first acquired 1.3 million shares in the firm during the third quarter of 2024 and has increased its holdings by 100% to 2.6 million shares as of the first quarter of 2025.
As of the end of the first quarter, Berkshire holds $1.204 billion worth of Domino’s shares.
Price Action: DPZ shares are trading higher by 3.76% to $479.60 at last check Tuesday.
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