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Ann Arbor, Michigan-based Domino's Pizza, Inc. (DPZ) operates as one of the largest pizza QSR chains in the US and internationally. With a market cap of $15.3 billion, the company offers pizzas under its own brand name through company-owned and franchised stores. It operates through the U.S. Stores, International Franchise, and Supply Chain segments.
The QSR stock has lagged behind the broader market over the past year but slightly outperformed in 2025. DPZ stock gained 8.3% over the past 52 weeks and 9.7% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 14.3% surge over the past year and 9.5% return in 2025.
Zooming in further, Domino’s has also lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 23.8% surge over the past 52 weeks and outperformed XLY’s 3.7% uptick in 2025.
Domino’s stock prices declined a marginal 80 bps in the trading session following the release of its mixed Q2 results on Jul. 21. Its U.S. same-store sales grew by 3.4%, while international same-store sales on a constant currency basis increased 2.4%. Further, it opened 178 net new stores during the quarter. Meanwhile, its global retail sales increased 5.5% year-over-year to $4.7 billion. This led to a 4.3% growth in Domino’s own revenues to $1.15 billion, surpassing the Street expectations by a thin margin.
However, the company’s net margin observed a slight contraction. Its EPS for the quarter came in at $3.81, down 5.5% year-over-year and missing the consensus estimates by 3.1%.
For the full fiscal 2025, ending in December, analysts expect DPZ to deliver an EPS of $17.70, up 6.1% year-over-year. The company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates twice over the past four quarters, it has missed the projections on two other occasions.
The stock maintains a consensus “Moderate Buy” rating overall. Of the 29 analysts covering the stock, opinions include 15 “Strong Buys,” one “Moderate Buy,” 11 “Holds,” and two “Strong Sells.”
This configuration is slightly less optimistic than three months ago, when only one analyst gave a “Strong Sell” recommendation and two analysts gave “Moderate Buy” suggestions.
On Jul. 29, RBC Capital analyst Logan Reich downgraded DPZ stock from “Outperform” to “Sector Perform” and reduced the price target from $550 to $500.
As of writing, DPZ’s mean price target of $511.48 represents an 11.1% premium to current price levels. Meanwhile, the Street-high target of $594 suggests a notable 28.9% upside potential.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
