Domino's Pizza Inc (NASDAQ:DPZ) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus: 27 brokerages give Domino's an average rating of "Moderate Buy" (1 sell, 13 hold, 11 buy, 2 strong buy) with a one‑year average price target of $475.37.
• Institutional ownership: About 94.63% of shares are held by institutions, and Berkshire Hathaway recently increased its stake to 3,350,000 shares (up 12.3%).
• Recent results and dividend: Domino's reported Q results of $5.35 EPS (missing by $0.03) on $1.54B revenue (+6.4% YoY) and raised the quarterly dividend to $1.99 ($7.96 annualized, ~2.2% yield).

Shares of Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twenty-seven research firms that are covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, thirteen have given a hold recommendation, eleven have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $475.3704.

Several brokerages have recently issued reports on DPZ. Royal Bank Of Canada reiterated a "sector perform" rating and set a $425.00 price target on shares of Domino's Pizza in a report on Tuesday, February 24th. Argus upgraded Domino's Pizza to a "hold" rating in a report on Monday, March 9th. TD Cowen reiterated a "hold" rating and set a $460.00 price target on shares of Domino's Pizza in a report on Monday, February 23rd. Sanford C. Bernstein reiterated a "market perform" rating and set a $470.00 price target on shares of Domino's Pizza in a report on Tuesday, February 24th. Finally, UBS Group set a $500.00 price target on Domino's Pizza and gave the company a "buy" rating in a report on Friday, February 13th.

Institutional Investors Weigh In On Domino's Pizza

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Berkshire Hathaway Inc lifted its holdings 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 worth $1,396,347,000 after purchasing an additional 368,055 shares during the last quarter. T. Rowe Price Investment Management Inc. lifted its holdings 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 worth $837,091,000 after purchasing an additional 7,497 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in Domino's Pizza by 1.8% in the 3rd quarter. Principal Financial Group Inc. now owns 1,762,568 shares of the restaurant operator's stock worth $760,939,000 after purchasing an additional 30,647 shares during the last quarter. State Street Corp lifted its holdings in Domino's Pizza by 3.8% in the 4th quarter. State Street Corp now owns 1,368,924 shares of the restaurant operator's stock worth $570,595,000 after purchasing an additional 49,613 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in Domino's Pizza by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 1,026,391 shares of the restaurant operator's stock worth $432,033,000 after purchasing an additional 19,019 shares during the last quarter. 94.63% of the stock is currently owned by institutional investors and hedge funds.

Domino's Pizza Price Performance

NASDAQ:DPZ opened at $368.83 on Tuesday. Domino's Pizza has a fifty-two week low of $346.31 and a fifty-two week high of $499.08. The stock's 50-day moving average is $384.59 and its two-hundred day moving average is $404.51. The stock has a market cap of $12.40 billion, a PE ratio of 20.99, a price-to-earnings-growth ratio of 1.58 and a beta of 1.18.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last announced its quarterly earnings results on Monday, February 23rd. The restaurant operator reported $5.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.38 by ($0.03). The firm had revenue of $1.54 billion for the quarter. Domino's Pizza had a net margin of 12.18% and a negative return on equity of 15.28%. Domino's Pizza's revenue was up 6.4% compared to the same quarter last year. During the same period last year, the company posted $4.89 EPS. On average, equities research analysts anticipate that Domino's Pizza will post 16.74 earnings per share for the current year.

Domino's Pizza Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 30th. Stockholders of record on Friday, March 13th were issued a dividend of $1.99 per share. The ex-dividend date was Friday, March 13th. This represents a $7.96 annualized dividend and a dividend yield of 2.2%. This is a positive change from Domino's Pizza's previous quarterly dividend of $1.74. Domino's Pizza's dividend payout ratio is presently 45.30%.

Domino's Pizza Company Profile

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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