Domino's Pizza (NASDAQ:DPZ) Shares Gap Down - Time to Sell?

Key Points

• Domino’s shares opened sharply lower, falling from a prior close of $310.90 to $287.01 before recovering to around $300.14.
• The company beat third-quarter earnings and revenue expectations, reporting $4.60 in EPS and approximately $1.19 billion in revenue, while operating income rose 8.3% and 175 stores were added globally.
• Investor concerns center on weak demand: U.S. same-store sales increased just 0.3% and revenue grew 3.4% year over year. Analysts maintain a “Moderate Buy” consensus, but several firms have neutral ratings or reduced price targets.

Domino's Pizza Inc (NASDAQ:DPZ - Get Free Report)'s stock price gapped down prior to trading on Tuesday. The stock had previously closed at $310.90, but opened at $287.01. Domino's Pizza shares last traded at $300.14, with a volume of 609,009 shares traded.

Key Stories Impacting Domino's Pizza

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

• Positive Sentiment: Domino’s reported third-quarter earnings of $4.60 per share, above the $4.33 analyst consensus and up from $4.08 a year earlier. Revenue reached approximately $1.19 billion, also exceeding expectations. Domino's Pizza Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Operating income increased 8.3%, while the company added 175 net stores globally—26 in the U.S. and 149 internationally. Ongoing share repurchases may also support per-share earnings. Domino’s Pizza Announces Third Quarter 2026 Financial Results
• Neutral Sentiment: TD Cowen reaffirmed its Hold rating and set a $320 price target, implying moderate upside from recent trading levels but signaling limited conviction in near-term outperformance.
• Negative Sentiment: U.S. same-store sales grew only 0.3%, while international same-store sales increased 0.2% excluding currency effects. The subdued customer demand led investors to view the quarter’s growth as underwhelming. Domino’s Pizza Falls After U.S. Same-Store Sales Disappoint
• Negative Sentiment: Revenue increased just 3.4% year over year, reinforcing concerns that sales growth is continuing to slow. The earnings beat appears to have been outweighed by cautious expectations for same-store sales and future momentum. Domino’s Pizza Sales Growth Continued Slowing

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Evercore reissued an "outperform" rating on shares of Domino's Pizza in a research report on Thursday, July 9th. Guggenheim decreased their price objective on shares of Domino's Pizza from $440.00 to $325.00 and set a "neutral" rating for the company in a research note on Wednesday, September 23rd. Wells Fargo & Company upped their price objective on shares of Domino's Pizza from $325.00 to $350.00 and gave the company an "equal weight" rating in a report on Tuesday, July 21st. Royal Bank Of Canada dropped their price objective on shares of Domino's Pizza from $350.00 to $325.00 and set a "sector perform" rating on the stock in a report on Monday, October 5th. Finally, Robert W. Baird reiterated a "neutral" rating and issued a $350.00 price objective on shares of Domino's Pizza in a research note on Monday, August 24th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $392.16.

Domino's Pizza Stock Performance

The stock has a 50 day simple moving average of $325.49 and a two-hundred day simple moving average of $327.96. The firm has a market cap of $9.95 billion, a PE ratio of 17.04, a price-to-earnings-growth ratio of 1.42 and a beta of 0.94.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last issued its quarterly earnings data on Tuesday, October 13th. The restaurant operator reported $4.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.33 by $0.27. Domino's Pizza had a negative return on equity of 15.15% and a net margin of 11.86%. The business had revenue of $1.19 billion during the quarter. During the same period last year, the firm earned $4.08 EPS. The business's quarterly revenue was up 3.4% compared to the same quarter last year. Equities research analysts forecast that Domino's Pizza Inc will post 18.95 earnings per share for the current year.

Insider Activity

In related news, EVP Kelly Garcia sold 12,430 shares of Domino's Pizza stock in a transaction that occurred on Wednesday, July 22nd. The stock was sold at an average price of $322.04, for a total transaction of $4,002,957.20. Following the completion of the transaction, the executive vice president directly owned 9,352 shares in the company, valued at approximately $3,011,718.08. This trade represents a 57.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Russell Weiner sold 10,850 shares of Domino's Pizza stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $330.83, for a total value of $3,589,505.50. Following the transaction, the chief executive officer owned 43,829 shares of the company's stock, valued at approximately $14,499,948.07. This represents a 19.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.89% of the stock is owned by company insiders.

Hedge Funds Weigh In On Domino's Pizza

Institutional investors have recently made changes to their positions in the company. CoreCap Advisors LLC grew its stake in Domino's Pizza by 17.0% in the 3rd quarter. CoreCap Advisors LLC now owns 262 shares of the restaurant operator's stock valued at $79,000 after acquiring an additional 38 shares during the period. Hennion & Walsh Asset Management Inc. raised its position in Domino's Pizza by 5.4% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 971 shares of the restaurant operator's stock worth $287,000 after acquiring an additional 50 shares during the period. Patton Fund Management Inc. raised its position in Domino's Pizza by 10.4% during the first quarter. Patton Fund Management Inc. now owns 565 shares of the restaurant operator's stock worth $203,000 after acquiring an additional 53 shares during the period. SHP Wealth Management acquired a new position in Domino's Pizza during the fourth quarter worth $25,000. Finally, Mufg Securities Americas Inc. lifted its holdings in Domino's Pizza by 7.2% during the second quarter. Mufg Securities Americas Inc. now owns 922 shares of the restaurant operator's stock valued at $273,000 after purchasing an additional 62 shares in the last quarter. 94.63% of the stock is owned by hedge funds and other institutional investors.

About Domino's Pizza

Domino's Pizza, Inc is a global quick-service restaurant company specializing in pizza delivery and carryout. Its menu includes a variety of pizzas, sides, desserts and beverages, with orders placed through digital platforms, phone ordering and participating stores.

Founded in 1960 in Ypsilanti, Michigan, Domino's began as a small pizza business and adopted its current name in 1965. The company has expanded through a primarily franchise-based model, supported by company-owned stores and an integrated supply chain that provides food and other products to many participating locations.

Domino's serves customers in the United States and international markets across North America, Europe, Asia-Pacific, the Middle East, Africa and other regions.

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