Mizuho Has Lowered Expectations for Domino's Pizza (NASDAQ:DPZ) Stock Price

Key Points

• Mizuho cut its price target on Domino's from $470 to $420 but kept an “outperform” rating, implying roughly a 24% upside from the stock's prior close.
• Domino's missed Q1 estimates (EPS $4.13 vs. $4.29 consensus; $1.15B revenue) and lowered its U.S. same‑store sales outlook, driving the recent selloff amid softer consumer spending and tougher competition.
• Offsetting near‑term weakness, the board approved a $1.0B share buyback, the company has strong free‑cash‑flow margins, and major institutions (including Berkshire) have increased stakes, supporting capital return and downside protection.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) had its target price dropped by Mizuho from $470.00 to $420.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an "outperform" rating on the restaurant operator's stock. Mizuho's price objective would suggest a potential upside of 24.19% from the stock's previous close.

A number of other brokerages have also recently issued reports on DPZ. Weiss Ratings reissued a "hold (c)" rating on shares of Domino's Pizza in a research report on Friday, March 27th. Wells Fargo & Company set a $350.00 price target on shares of Domino's Pizza in a report on Tuesday. BTIG Research dropped their price objective on shares of Domino's Pizza from $500.00 to $450.00 and set a "buy" rating for the company in a research note on Monday. The Goldman Sachs Group set a $430.00 target price on shares of Domino's Pizza in a research note on Tuesday. Finally, Stifel Nicolaus set a $400.00 price target on Domino's Pizza in a research note on Monday. Eleven investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Domino's Pizza currently has an average rating of "Hold" and an average target price of $445.00.

Domino's Pizza Price Performance

Shares of NASDAQ:DPZ opened at $338.18 on Tuesday. The stock has a market capitalization of $11.37 billion, a PE ratio of 19.24, a price-to-earnings-growth ratio of 1.61 and a beta of 1.18. The company's 50-day moving average price is $379.95 and its two-hundred day moving average price is $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 data on Monday, April 27th. The restaurant operator reported $4.13 EPS for the quarter, missing analysts' consensus estimates of $4.29 by ($0.16). The firm had revenue of $1.15 billion during 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 for the quarter was up 3.5% on a year-over-year basis. During the same period in the previous year, the business posted $4.33 earnings per share. On average, analysts anticipate that Domino's Pizza will post 19.74 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Domino's Pizza

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Berkshire Hathaway Inc increased its holdings in 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 during the last quarter. T. Rowe Price Investment Management Inc. raised its holdings in shares of 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 period. Principal Financial Group Inc. grew its holdings in 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 valued at $760,939,000 after purchasing an additional 30,647 shares during the period. State Street Corp increased its position in Domino's Pizza by 3.8% in 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 during the last quarter. Finally, Geode Capital Management LLC raised its stake in shares of Domino's Pizza by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 1,026,391 shares of the restaurant operator's stock valued at $432,033,000 after buying an additional 19,019 shares during the period. Hedge funds and other institutional investors own 94.63% of the company's stock.

Trending Headlines about Domino's Pizza

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

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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