BMO Capital Markets Cuts Domino's Pizza (NASDAQ:DPZ) Price Target to $450.00

Key Points

• BMO Capital Markets cut its price target on Domino's from $500 to $450 but kept an "outperform" rating, with that target implying roughly a 34% upside$450.56 amid mixed Buy/Hold ratings.
• Domino's Q1 results missed expectations — EPS of $4.13 vs. $4.29 estimate and revenue of $1.15B with U.S. same-store sales up just 0.9% — prompting a lowered full-year outlook and an ~8.9% drop in the stock.
• The board approved an additional $1.0 billion share repurchase and declared a quarterly dividend of $1.99 per share, while institutional investors (including Berkshire Hathaway) continue to hold the vast majority of shares (~94.6% ownership).

Domino's Pizza (NASDAQ:DPZ - Get Free Report) had its price objective dropped by stock analysts at BMO Capital Markets from $500.00 to $450.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the restaurant operator's stock. BMO Capital Markets' target price points to a potential upside of 34.31% from the company's previous close.

DPZ has been the topic of several other research reports. Evercore reissued an "outperform" rating and issued a $510.00 target price on shares of Domino's Pizza in a research note on Tuesday, February 24th. Argus raised Domino's Pizza to a "hold" rating in a research note on Monday, March 9th. Morgan Stanley cut their target price on Domino's Pizza from $455.00 to $430.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 21st. William Blair set a $540.00 target price on Domino's Pizza in a research note on Monday, February 23rd. Finally, Royal Bank Of Canada cut their target price on Domino's Pizza from $425.00 to $400.00 and set a "sector perform" rating on the stock in a research note on Wednesday, April 15th. Eleven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $450.56.

Domino's Pizza Trading Down 8.9%

NASDAQ:DPZ opened at $335.05 on Tuesday. Domino's Pizza has a 1-year low of $328.74 and a 1-year high of $499.08. The business's 50-day moving average price is $379.95 and its two-hundred day moving average price is $400.40. The firm has a market capitalization of $11.27 billion, a price-to-earnings ratio of 19.07, a PEG ratio of 1.61 and a beta of 1.18.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last released its earnings results on Monday, April 27th. The restaurant operator reported $4.13 earnings per share for the quarter, missing the consensus estimate of $4.29 by ($0.16). Domino's Pizza had a net margin of 12.18% and a negative return on equity of 15.28%. The company had revenue of $1.15 billion during the quarter. During the same quarter last year, the firm earned $4.33 earnings per share. The company's revenue for the quarter was up 3.5% on a year-over-year basis. Sell-side analysts predict that Domino's Pizza will post 19.74 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Berkshire Hathaway Inc grew its holdings in shares of Domino's Pizza by 12.3% during the fourth quarter. Berkshire Hathaway Inc now owns 3,350,000 shares of the restaurant operator's stock worth $1,396,347,000 after buying an additional 368,055 shares in the last quarter. T. Rowe Price Investment Management Inc. grew its holdings in shares of Domino's Pizza by 0.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,008,278 shares of the restaurant operator's stock worth $837,091,000 after buying an additional 7,497 shares in the last quarter. Principal Financial Group Inc. grew its holdings in shares of Domino's Pizza by 1.8% during the third quarter. Principal Financial Group Inc. now owns 1,762,568 shares of the restaurant operator's stock worth $760,939,000 after buying an additional 30,647 shares in the last quarter. State Street Corp grew its holdings in shares of Domino's Pizza by 3.8% during the fourth quarter. State Street Corp now owns 1,368,924 shares of the restaurant operator's stock worth $570,595,000 after buying an additional 49,613 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of Domino's Pizza by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 1,026,391 shares of the restaurant operator's stock worth $432,033,000 after buying an additional 19,019 shares in the last quarter. 94.63% of the stock is currently owned by institutional investors.

Trending Headlines about Domino's Pizza

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

• Positive Sentiment: Board approved an additional $1.0 billion share repurchase program and reported higher income from operations, signaling capital returns and margin resilience. Domino's Pizza® Announces First Quarter 2026 Financial Results
• Positive Sentiment: Company declared a quarterly dividend of $1.99 per share (yield ~2.4%), supporting income-focused investors. (Dividend notice from company filings/announcements)
• Neutral Sentiment: Domino's reported global retail sales growth and net store openings (180 net stores, including international expansion), which underpin long‑term footprint growth even as near‑term demand softens. Domino's Pizza® Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Analysts and commentary highlight that Domino's is taking market‑share actions and product innovation initiatives — these could help recovery but may take time to show up in results. Domino's Pizza: I'll Take Advantage Of Market Scares For A Slice Of Gains
• Negative Sentiment: Q1 revenue ($1.15B) and EPS ($4.13) missed Street estimates; U.S. same‑store sales rose only 0.9%, well below expectations — the primary driver of the stock decline. Domino's NASDAQ: DPZ Misses Q1 CY2026 Sales Expectations
• Negative Sentiment: Management lowered the full‑year outlook and CEO warned winter weather and weaker consumer sentiment hit the quarter — signaling broader demand risk for the QSR sector. Domino's Pizza stock falls on disappointing sales — and CEO thinks more chains will follow
• Negative Sentiment: Competition and a “pizza price war” are pressuring consumer choices and margins, increasing the risk that discretionary spending weakness persists. There's a pizza price war going on, and Domino's is feeling the pain

About Domino's Pizza

Domino's Pizza, Inc NASDAQ: DPZ is a global pizza delivery and carryout chain founded in 1960 and headquartered in Ann Arbor, Michigan. The company specializes in a broad range of hand‐crafted pizzas, including hand-tossed, thin crust and specialty offerings, alongside side items such as chicken wings, sandwiches, pasta, desserts and beverages. Domino's has built its brand on convenience and speed, leveraging proprietary ordering platforms and its Domino's Tracker system to provide real-time status updates from order placement through delivery.

Operating predominantly under a franchise model, Domino's has more than 17,000 stores worldwide, with approximately 95% of outlets owned and operated by independent franchisees.

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