HSBC Lowers Domino's Pizza (NASDAQ:DPZ) Price Target to $544.00

Key Points

• HSBC cut its price target on Domino's to $544 from $601 while keeping a "buy" rating, a level that implies roughly 61% upside from the stock's previous close.
• Domino's missed Q1 estimates (EPS $4.13 vs. $4.29 consensus; revenue $1.15B) and management lowered its U.S. same‑store sales outlook, triggering near‑term selling pressure and concerns about consumer demand.
• Analysts are mixed: the consensus is a "Hold" with an average price target of $426.47 (14 Buys, 12 Holds, 2 Sells), while the stock traded around $337.17 after the report.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) had its price objective lowered by research analysts at HSBC from $601.00 to $544.00 in a research report issued on Tuesday,MarketScreener reports. The brokerage presently has a "buy" rating on the restaurant operator's stock. HSBC's price target would indicate a potential upside of 61.34% from the company's previous close.

Other equities analysts have also recently issued research reports about the stock. Robert W. Baird dropped their price target on shares of Domino's Pizza from $495.00 to $400.00 and set an "outperform" rating on the stock in a research report on Monday. Benchmark dropped their price target on shares of Domino's Pizza from $465.00 to $430.00 and set a "buy" rating on the stock in a research report on Tuesday. Sanford C. Bernstein reiterated a "market perform" rating and issued a $470.00 price objective on shares of Domino's Pizza in a research note on Tuesday, February 24th. Jefferies Financial Group decreased their price objective on shares of Domino's Pizza from $400.00 to $350.00 and set a "hold" rating for the company in a research note on Tuesday. Finally, Wells Fargo & Company set a $350.00 price objective on shares of Domino's Pizza and gave the company an "equal weight" rating in a research note on Tuesday. Fourteen investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $426.47.

Domino's Pizza Price Performance

Shares of DPZ stock traded up $1.87 on Tuesday, reaching $337.17. 129,274 shares of the company were exchanged, compared to its average volume of 935,181. The company has a market cap of $11.34 billion, a price-to-earnings ratio of 19.14, a PEG ratio of 1.61 and a beta of 1.18. The company has a 50-day moving average of $379.95 and a 200-day moving average of $400.40. Domino's Pizza has a one year low of $328.74 and a one year high of $499.08.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last announced its quarterly 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 business had revenue of $1.15 billion during the quarter. During the same quarter last year, the firm posted $4.33 earnings per share. The business's quarterly revenue was up 3.5% compared to the same quarter last year. As a group, sell-side analysts predict that Domino's Pizza will post 19.74 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Berkshire Hathaway Inc boosted its holdings in Domino's Pizza by 13.2% in the 3rd quarter. Berkshire Hathaway Inc now owns 2,981,945 shares of the restaurant operator's stock valued at $1,287,335,000 after purchasing an additional 348,077 shares during the period. Marshfield Associates lifted its holdings in shares of Domino's Pizza by 4.0% during the 3rd quarter. Marshfield Associates now owns 744,515 shares of the restaurant operator's stock worth $321,415,000 after acquiring an additional 28,765 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Domino's Pizza by 1.8% during the 3rd quarter. Principal Financial Group Inc. now owns 1,762,568 shares of the restaurant operator's stock worth $760,939,000 after acquiring an additional 30,647 shares during the last quarter. Mediolanum International Funds Ltd lifted its holdings in shares of Domino's Pizza by 209.6% during the 3rd quarter. Mediolanum International Funds Ltd now owns 4,155 shares of the restaurant operator's stock worth $1,805,000 after acquiring an additional 2,813 shares during the last quarter. Finally, Machina Capital S.A.S. bought a new stake in shares of Domino's Pizza during the 3rd quarter worth $1,557,000. 94.63% of the stock is currently owned by hedge funds and other institutional investors.

More Domino's Pizza News

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

• Positive Sentiment: Company has strong free-cash-flow margins that some analysts say could mean the recent selloff is overdone — strong FCF supports buybacks/dividends and suggests intrinsic value may be intact. Domino's Pizza Stock Drop May Be Overdone, Based on Its Strong FCF Margins
• Positive Sentiment: Board approved an additional $1.0 billion share repurchase program and the company continues to pay a sizable quarterly dividend (announced earlier); these actions boost capital return and support downside protection for the stock. Domino's Pizza Announces First Quarter 2026 Financial Results
• Positive Sentiment: Some sell‑side firms cut price targets but left bullish ratings — BMO Capital Markets and BTIG lowered PTs from $500 to $450 while maintaining Outperform/Buy, implying they still see ~30%-plus upside from current levels. Benzinga
• Neutral Sentiment: Domino’s will give affected customers another chance at its 50%‑off promotion after a third‑party online‑ordering outage — a short‑term cost and goodwill move but not material to fundamentals. Missed Out? Domino's® is Giving Customers a Second Chance at Its 50% Off Pizza Deal After Online Ordering Glitch
• Neutral Sentiment: TD Cowen reaffirmed a "hold" with a $400 target — shows mixed analyst views and suggests uneven conviction among firms on near‑term upside. Benzinga
• Negative Sentiment: Q1 results missed expectations: EPS $4.13 vs. ~$4.29 consensus and revenue $1.15B (below estimates). U.S. same‑store sales rose only ~0.9%, well under street expectations — the core miss that sparked the selloff. Domino's NASDAQ: DPZ Misses Q1 CY2026 Sales Expectations
• Negative Sentiment: Management lowered its full‑year U.S. same‑store sales outlook and flagged tougher consumer discretionary spending and intensifying competition — investors worry slowing demand and a "pizza price war" pressure margins and growth. Domino's Pizza falls short of US sales estimates as diners curb spending
• Negative Sentiment: Press and analysts emphasize that weak U.S. comps and a cautious consumer backdrop (winter weather/consumer sentiment cited by management) are likely to keep near‑term top‑line pressure and heighten volatility in the shares. Domino's Pizza stock falls on disappointing sales — and CEO thinks more chains will follow

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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