UBS Group Issues Pessimistic Forecast for Domino's Pizza (NASDAQ:DPZ) Stock Price

Key Points

• UBS Group cut its price target on Domino's to $425 from $480 while maintaining a Buy rating, implying roughly a 26% upside from the prior close.
• Domino's Q1 results missed expectations — EPS $4.13 vs. $4.29 consensus and $1.15B revenue — and management lowered its full‑year U.S. same‑store sales outlook, triggering the recent share pullback and increased volatility.
• The analyst landscape is mixed: the consensus rating is Hold with an average target of about $426.47 (14 Buys, 12 Holds, 2 Sells), reflecting uneven conviction on near‑term upside.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) had its target price dropped by UBS Group from $480.00 to $425.00 in a report issued on Tuesday,MarketScreener reports. The brokerage presently has a "buy" rating on the restaurant operator's stock. UBS Group's target price points to a potential upside of 26.05% from the company's previous close.

A number of other research firms have also issued reports on DPZ. Citigroup decreased their target price on Domino's Pizza from $440.00 to $425.00 and set a "neutral" rating for the company in a report on Tuesday, April 7th. Argus upgraded Domino's Pizza to a "hold" rating in a report on Monday, March 9th. Guggenheim dropped their price objective on Domino's Pizza from $450.00 to $440.00 and set a "neutral" rating on the stock in a report on Wednesday, February 25th. TD Cowen reiterated a "hold" rating and issued a $400.00 price objective on shares of Domino's Pizza in a report on Monday. Finally, The Goldman Sachs Group set a $430.00 price objective on Domino's Pizza in a report on Tuesday. Fourteen research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $426.47.

Domino's Pizza Trading Up 0.6%

NASDAQ:DPZ traded up $1.87 during midday trading on Tuesday, reaching $337.17. The company had a trading volume of 129,274 shares, compared to its average volume of 935,181. The firm has a market capitalization 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 stock's fifty day simple moving average is $379.95 and its 200-day simple moving average is $400.40. Domino's Pizza has a 12-month low of $328.74 and a 12-month high of $499.08.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last released its earnings results on Monday, April 27th. The restaurant operator reported $4.13 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.29 by ($0.16). The company 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%. The company's revenue for the quarter was up 3.5% compared to the same quarter last year. During the same period in the previous year, the business posted $4.33 EPS. As a group, sell-side analysts expect that Domino's Pizza will post 19.74 EPS for the current year.

Hedge Funds Weigh In On Domino's Pizza

Institutional investors have recently added to or reduced their stakes in the stock. SHP Wealth Management acquired a new position in Domino's Pizza in the 4th quarter valued at about $25,000. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in Domino's Pizza by 97.1% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 69 shares of the restaurant operator's stock valued at $29,000 after purchasing an additional 34 shares in the last quarter. MBM Wealth Consultants LLC purchased a new stake in Domino's Pizza in the 1st quarter valued at approximately $31,000. Johnson Financial Group Inc. boosted its holdings in Domino's Pizza by 200.0% in the 3rd 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 purchased a new stake in Domino's Pizza in the 4th quarter valued at approximately $42,000. Institutional investors and hedge funds own 94.63% of the company's stock.

Domino's Pizza News Roundup

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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