BTIG Research Reaffirms Buy Rating for Domino's Pizza (NASDAQ:DPZ)

Key Points

• BTIG Research reaffirmed a Buy rating on Domino’s Pizza with a $425 price target, implying 43.53% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $386.16.
• Domino’s exceeded quarterly expectations, reporting $4.60 in earnings per share and $1.19 billion in revenue, up 3.4% year over year. Growth was supported by an 8.3% increase in operating income and 175 net new stores globally.
• Underlying sales growth remains weak: U.S. same-store sales rose just 0.3% and international comparable sales increased 0.2%, while competition and cautious consumers are pressuring the outlook and store margins.

Domino's Pizza (NASDAQ:DPZ - Get Free Report)'s stock had its "buy" rating reissued by research analysts at BTIG Research in a report issued on Wednesday, Benzinga reports. They currently have a $425.00 price target on the restaurant operator's stock. BTIG Research's target price points to a potential upside of 43.53% from the company's previous close.

DPZ has been the topic of several other reports. Sanford C. Bernstein restated a "market perform" rating on shares of Domino's Pizza in a research report on Tuesday, July 21st. Bank of America lowered their target price on shares of Domino's Pizza from $455.00 to $410.00 and set a "buy" rating on the stock in a research report on Wednesday. UBS Group restated a "buy" rating on shares of Domino's Pizza in a research report on Monday, October 5th. Robert W. Baird restated a "neutral" rating and set a $350.00 target price on shares of Domino's Pizza in a research report on Monday, August 24th. Finally, BMO Capital Markets lowered their target price on shares of Domino's Pizza from $450.00 to $420.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $386.16.

Domino's Pizza Stock Performance

Shares of Domino's Pizza stock opened at $296.10 on Wednesday. Domino's Pizza has a one year low of $282.00 and a one year high of $442.35. The company has a market cap of $9.79 billion, a P/E ratio of 16.80, a PEG ratio of 1.42 and a beta of 0.94. The firm has a fifty day moving average of $324.06 and a two-hundred day moving average of $327.49.

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

Insider Transactions at Domino's Pizza

In related news, EVP Kelly Garcia sold 12,430 shares of the stock in a transaction dated Wednesday, July 22nd. The shares were sold at an average price of $322.04, for a total value of $4,002,957.20. Following the sale, the executive vice president directly owned 9,352 shares of the company's stock, valued at approximately $3,011,718.08. This represents a 57.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Russell Weiner sold 10,850 shares of the stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $330.83, for a total transaction of $3,589,505.50. Following the completion of the sale, the chief executive officer directly owned 43,829 shares in the company, valued at approximately $14,499,948.07. The trade was a 19.84% 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 corporate insiders.

Institutional Investors Weigh In On Domino's Pizza

Large investors have recently added to or reduced their stakes in the business. Berkshire Hathaway Inc grew its stake in 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 acquiring an additional 368,055 shares during the last quarter. Soroban Capital Partners LP acquired a new stake in Domino's Pizza in the 1st quarter valued at about $895,251,000. T. Rowe Price Investment Management Inc. grew its stake in 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 acquiring an additional 7,497 shares during the last quarter. BlackRock Inc. acquired a new stake in Domino's Pizza in the 2nd quarter valued at about $715,704,000. Finally, Arrowstreet Capital Limited Partnership grew its stake in Domino's Pizza by 247.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 527,246 shares of the restaurant operator's stock valued at $189,171,000 after acquiring an additional 375,709 shares during the last quarter. 94.63% of the stock is owned by institutional investors and hedge funds.

Domino's Pizza News Roundup

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.