Domino's Pizza (NASDAQ:DPZ) Stock Price Target Lowered at Bank of America

Key Points

• Bank of America lowered Domino’s price target from $455 to $410 but maintained a “buy” rating, implying approximately 38.5% upside from the stock’s $296.10 price. The broader analyst consensus remains “Moderate Buy,” with an average target of $387.13.
• Domino’s reported quarterly EPS of $4.60, beating the $4.33 consensus estimate, while revenue rose 3.4% year over year to $1.19 billion. Operating income increased 8.3%, supported by supply-chain sales, franchise royalties and store expansion.
• Despite the earnings beat, comparable-sales growth was weak at 0.3% in the U.S. and 0.2% internationally, reflecting intensified competition and cautious consumer spending. Management’s muted same-store-sales outlook and narrower store margins remain concerns for future growth.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) had its price target lowered by equities research analysts at Bank of America from $455.00 to $410.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has a "buy" rating on the restaurant operator's stock. Bank of America's target price points to a potential upside of 38.47% from the stock's current price.

DPZ has been the subject of a number of other reports. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Domino's Pizza in a research note on Tuesday, July 21st. Citigroup decreased their target price on Domino's Pizza from $365.00 to $335.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 7th. Evercore reissued an "outperform" rating on shares of Domino's Pizza in a research note on Thursday, July 9th. Weiss Ratings restated a "hold (c-)" rating on shares of Domino's Pizza in a report on Wednesday, August 26th. Finally, Benchmark reaffirmed a "buy" rating on shares of Domino's Pizza in a research report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $387.13.

Domino's Pizza Stock Performance

Domino's Pizza stock opened at $296.10 on Wednesday. Domino's Pizza has a fifty-two week low of $282.00 and a fifty-two week high of $442.35. The firm has a 50 day moving average price of $324.06 and a 200 day moving average price of $327.49. The company has a market capitalization of $9.79 billion, a PE ratio of 16.80, a price-to-earnings-growth ratio of 1.42 and a beta of 0.94.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last announced its earnings results on Tuesday, October 13th. The restaurant operator reported $4.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.33 by $0.27. Domino's Pizza had a negative return on equity of 15.15% and a net margin of 11.86%. The company had revenue of $1.19 billion for the quarter. During the same period in the previous year, the firm earned $4.08 EPS. The firm's revenue for the quarter was up 3.4% compared to the same quarter last year. As a group, equities research analysts forecast that Domino's Pizza will post 18.96 earnings per share for the current year.

Insider Buying and Selling at Domino's Pizza

In related news, CEO Russell Weiner sold 10,850 shares of Domino's Pizza stock in a transaction on Friday, July 17th. The stock was sold at an average price of $330.83, for a total value of $3,589,505.50. Following the completion of the transaction, the chief executive officer directly owned 43,829 shares in the company, valued at approximately $14,499,948.07. This trade represents a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Kelly Garcia sold 12,430 shares of the business's stock in a transaction on Wednesday, July 22nd. The stock was sold at an average price of $322.04, for a total value of $4,002,957.20. Following the transaction, the executive vice president directly owned 9,352 shares of the company's stock, valued at $3,011,718.08. The trade was a 57.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.89% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Domino's Pizza

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Berkshire Hathaway Inc boosted its holdings in shares of Domino's Pizza by 12.3% in the 4th quarter. Berkshire Hathaway Inc now owns 3,350,000 shares of the restaurant operator's stock valued at $1,396,347,000 after buying an additional 368,055 shares in the last quarter. Soroban Capital Partners LP purchased a new position in shares of Domino's Pizza in the 1st quarter valued at $895,251,000. BlackRock Inc. purchased a new position in shares of Domino's Pizza in the 2nd quarter valued at $715,704,000. T. Rowe Price Investment Management Inc. grew its position in shares of Domino's Pizza by 0.4% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,008,278 shares of the restaurant operator's stock valued at $837,091,000 after buying an additional 7,497 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its stake in Domino's Pizza by 247.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 527,246 shares of the restaurant operator's stock worth $189,171,000 after acquiring an additional 375,709 shares in the last quarter. Hedge funds and other institutional investors own 94.63% of the company's stock.

Key Stories Impacting Domino's Pizza

Here are the key news stories impacting Domino's Pizza this week:

• Positive Sentiment: Domino’s reported third-quarter earnings of $4.60 per share, above estimates of roughly $4.33-$4.38 and up from $4.08 a year earlier. Revenue increased 3.4% to $1.19 billion, also exceeding expectations. Domino's Q3 EPS report
• Positive Sentiment: Operating income rose 8.3%, supported by supply-chain sales, franchise royalties and ongoing store expansion. Domino’s added 175 net stores globally, including 149 internationally, providing longer-term growth potential. Domino's third-quarter financial results
• Positive Sentiment: Management said customers are ordering more frequently, which partly offsets lower spending per order. The company also continues to return capital, including a quarterly dividend of $1.99 per share, or $7.96 annualized.
• Neutral Sentiment: TD Cowen reaffirmed its “hold” rating with a $320 price target, implying potential upside from recent levels but signaling limited conviction in a near-term re-rating.
• Negative Sentiment: U.S. same-store sales grew only 0.3%, while international same-store sales increased 0.2%. The weak comparable-sales performance suggests that the earnings beat was driven more by operational improvements than by strong underlying demand. Domino's third-quarter sales report
• Negative Sentiment: Domino’s forecast muted annual same-store sales growth as competition intensifies and cost-conscious consumers reduce spending. Reports also pointed to narrower store margins and a broader slowdown in pizza demand, raising concerns about the company’s growth outlook. Reuters report on Domino's outlook

About Domino's Pizza

Domino's Pizza, Inc is a global quick-service restaurant company specializing in pizza delivery and carryout. Its menu includes a variety of pizzas, sides, desserts and beverages, with orders placed through digital platforms, phone ordering and participating stores.

Founded in 1960 in Ypsilanti, Michigan, Domino's began as a small pizza business and adopted its current name in 1965. The company has expanded through a primarily franchise-based model, supported by company-owned stores and an integrated supply chain that provides food and other products to many participating locations.

Domino's serves customers in the United States and international markets across North America, Europe, Asia-Pacific, the Middle East, Africa and other regions.

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