Zacks Research Predicts Weaker Earnings for Domino's Pizza

Key Points

• Zacks Research lowered its earnings outlook for Domino's Pizza, cutting Q3 2026 EPS estimates to $4.22 from $4.42 and trimming longer-term forecasts as well.
• Domino's recently missed quarterly expectations, reporting $4.13 EPS versus the $4.29 consensus, even though revenue rose 3.5% year over year to $1.15 billion.
• Analyst sentiment has turned more cautious, with several firms reducing price targets; the stock now carries a consensus rating of Hold and an average target price of $421.35.

Domino's Pizza Inc (NASDAQ:DPZ - Free Report) - Analysts at Zacks Research lowered their Q3 2026 earnings per share (EPS) estimates for shares of Domino's Pizza in a research report issued to clients and investors on Friday, May 8th. Zacks Research analyst Team now anticipates that the restaurant operator will post earnings of $4.22 per share for the quarter, down from their prior forecast of $4.42. The consensus estimate for Domino's Pizza's current full-year earnings is $19.22 per share. Zacks Research also issued estimates for Domino's Pizza's Q3 2027 earnings at $4.79 EPS, Q4 2027 earnings at $6.84 EPS, FY2027 earnings at $20.54 EPS, Q1 2028 earnings at $4.60 EPS and FY2028 earnings at $22.34 EPS.

A number of other equities analysts have also weighed in on the stock. JPMorgan Chase & Co. decreased their price objective on shares of Domino's Pizza from $450.00 to $440.00 and set an "overweight" rating for the company in a report on Friday, April 24th. Loop Capital decreased their price objective on shares of Domino's Pizza from $574.00 to $500.00 and set a "buy" rating for the company in a report on Tuesday, April 28th. Sanford C. Bernstein decreased their price objective on shares of Domino's Pizza from $470.00 to $390.00 and set a "market perform" rating for the company in a report on Tuesday, April 28th. BMO Capital Markets decreased their price objective on shares of Domino's Pizza from $500.00 to $450.00 and set an "outperform" rating for the company in a report on Tuesday, April 28th. Finally, 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 report on Tuesday, April 28th. Seventeen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $421.35.

Domino's Pizza Price Performance

Shares of DPZ opened at $323.48 on Monday. The business's 50 day moving average price is $373.16 and its 200-day moving average price is $396.96. Domino's Pizza has a 52 week low of $321.27 and a 52 week high of $499.08. The stock has a market cap of $10.76 billion, a P/E ratio of 18.62, a P/E/G ratio of 1.49 and a beta of 1.02.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last issued its quarterly earnings results on Monday, April 27th. The restaurant operator reported $4.13 EPS for the quarter, missing analysts' consensus estimates of $4.29 by ($0.16). Domino's Pizza had a negative return on equity of 15.04% and a net margin of 11.89%.The company had revenue of $1.15 billion during the quarter. During the same quarter in the prior year, the company posted $4.33 earnings per share. The firm's quarterly revenue was up 3.5% on a year-over-year basis.

Domino's Pizza Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be issued a dividend of $1.99 per share. This represents a $7.96 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Monday, June 15th. Domino's Pizza's dividend payout ratio is presently 45.83%.

Insider Buying and Selling at Domino's Pizza

In other news, EVP Kelly E. Garcia sold 488 shares of the stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $332.31, for a total transaction of $162,167.28. Following the transaction, the executive vice president directly owned 9,352 shares of the company's stock, valued at $3,107,763.12. This represents a 4.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.89% of the stock is owned by insiders.

Hedge Funds Weigh In On Domino's Pizza

Several hedge funds and other institutional investors have recently modified their holdings of DPZ. SHP Wealth Management bought a new position in shares of Domino's Pizza during the 4th quarter valued at $25,000. Annis Gardner Whiting Capital Advisors LLC lifted its holdings in shares of Domino's Pizza by 97.1% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 69 shares of the restaurant operator's stock valued at $29,000 after buying an additional 34 shares during the period. MBM Wealth Consultants LLC bought a new position in shares of Domino's Pizza during the 1st quarter valued at $31,000. Cornerstone Planning Group LLC lifted its holdings in shares of Domino's Pizza by 450.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 99 shares of the restaurant operator's stock valued at $33,000 after buying an additional 81 shares during the period. Finally, Johnson Financial Group Inc. increased its stake in shares of Domino's Pizza by 200.0% in the 3rd quarter. Johnson Financial Group Inc. now owns 84 shares of the restaurant operator's stock worth $36,000 after purchasing an additional 56 shares in the last quarter. 94.63% of the stock is owned by institutional investors.

Key Domino's Pizza News

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

• Positive Sentiment: Domino's remains a leading global pizza chain and continues to appeal to income-focused investors thanks to its dividend and history of payout growth. 1 Reason the Final Stock Warren Buffett Bought Is the Ultimate Millionaire-Maker
• Neutral Sentiment: Jim Cramer said he is not ready to buy Domino's yet, reinforcing a wait-and-see attitude rather than a clear bullish or bearish catalyst. Jim Cramer on Domino’s Pizza: “We’re Not Going to Buy It Yet”
• Negative Sentiment: Zacks Research cut Domino's near- and long-term earnings estimates across several periods, including Q3 2026, FY2027, and FY2028, signaling softer profit expectations. Domino's Pizza Stock Quote
• Negative Sentiment: A head-to-head review versus BJ's Restaurants keeps attention on Domino's valuation and competitive positioning, which can add to investor caution if growth expectations are not clearly improving. Head-To-Head Review: Domino's Pizza NASDAQ: DPZ and BJ's Restaurants NASDAQ: BJRI

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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