Domino's Pizza (NASDAQ:DPZ) Sets New 52-Week Low After Earnings Miss

Key Points

• Earnings miss drove the stock lower: Domino's reported Q1 EPS of $4.13 versus a $4.29 consensus (down from $4.33 year‑over‑year), and shares fell to a new 52‑week low (intraday $342.30, last ~$336.11) on the disappointing print.
• Shareholder returns boosted: the company raised its quarterly dividend to $1.99 ($7.96 annualized; ~2.4% yield) and authorized an additional $1.0 billion share repurchase program.
• Operational mix was mixed — global net store openings totaled +180 and income from operations rose ~9.6% (7.9% ex‑FX), but U.S. same‑store sales grew just 0.9% versus ~2.7% expected, signaling softer domestic demand.

Shares of Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report) reached a new 52-week low on Monday following a dissappointing earnings announcement. The company traded as low as $342.30 and last traded at $336.1110, with a volume of 161835 shares trading hands. The stock had previously closed at $367.83.

The restaurant operator reported $4.13 earnings per share for the quarter, missing the consensus estimate of $4.29 by ($0.16). The business had revenue of $1.15 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 3.5% compared to the same quarter last year. During the same period last year, the firm posted $4.33 EPS.

Domino's Pizza Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 30th. Investors of record on Friday, March 13th were given a dividend of $1.99 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $7.96 dividend on an annualized basis and a dividend yield of 2.4%. This is a boost from Domino's Pizza's previous quarterly dividend of $1.74. Domino's Pizza's payout ratio is currently 45.30%.

Domino's Pizza News Roundup

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

• Positive Sentiment: Board authorized an additional $1.0 billion share repurchase program, a shareholder-friendly action that can support EPS and the stock over time. Read More.
• Positive Sentiment: Operational growth: global net store openings totaled +180 (19 net U.S., 161 international) and income from operations rose ~9.6% (7.9% ex-FX), showing continued unit-level and margin progress. Read More.
• Neutral Sentiment: TD Cowen reaffirmed a “hold” rating with a $400 price target, signaling cautious analyst sentiment — some upside vs. current levels but not a buy endorsement. Read More.
• Neutral Sentiment: Company commentary: CEO highlighted positive order count and market-share gains, which support the narrative of competitive strength even as volume/pricing mix face headwinds. Read More.
• Negative Sentiment: Earnings miss: Q1 EPS was $4.13 vs. the consensus $4.29, and EPS declined vs. prior-year $4.33, disappointing investors who expected stronger profitability. Read More.
• Negative Sentiment: U.S. same-store sales underwhelmed (0.9% vs. expectations ~2.7%), signaling consumer discretionary strain and weaker demand that directly pressures revenue growth and investor sentiment. Read More.
• Negative Sentiment: Market reaction: several outlets reported a share-price decline after the results, reflecting investor disappointment and the prospect of slower near-term top-line momentum. Read More.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on DPZ shares. William Blair set a $540.00 target price on shares of Domino's Pizza in a report on Monday, February 23rd. BMO Capital Markets reaffirmed an "outperform" rating on shares of Domino's Pizza in a report on Tuesday, February 24th. JPMorgan Chase & Co. dropped their price target on Domino's Pizza from $450.00 to $440.00 and set an "overweight" rating on the stock in a research report on Friday. Mizuho cut their price target on Domino's Pizza from $500.00 to $470.00 and set an "outperform" rating on the stock in a report on Wednesday, April 22nd. Finally, Barclays upgraded Domino's Pizza from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 31st. Eleven analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $464.26.

Hedge Funds Weigh In On Domino's Pizza

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. SHP Wealth Management bought a new stake in Domino's Pizza during the 4th quarter valued at $25,000. Annis Gardner Whiting Capital Advisors LLC grew its stake in shares of Domino's Pizza by 97.1% in the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 69 shares of the restaurant operator's stock worth $29,000 after purchasing an additional 34 shares in the last quarter. MBM Wealth Consultants LLC acquired a new position in shares of Domino's Pizza during the first quarter valued at $31,000. Johnson Financial Group Inc. raised its stake in shares of Domino's Pizza by 200.0% during the third quarter. Johnson Financial Group Inc. now owns 84 shares of the restaurant operator's stock valued at $36,000 after purchasing an additional 56 shares in the last quarter. Finally, Arax Advisory Partners bought a new stake in shares of Domino's Pizza during the fourth quarter valued at about $42,000. 94.63% of the stock is owned by institutional investors.

Domino's Pizza Price Performance

The firm has a market cap of $11.14 billion, a price-to-earnings ratio of 18.88, a P/E/G ratio of 1.61 and a beta of 1.18. The firm's fifty day moving average is $380.76 and its two-hundred day moving average is $400.90.

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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