Analysts at Melius Research have begun their evaluation of Domino's Pizza (DPZ, Financial) by assigning it a Hold rating. The firm has set a price target of $500 for the stock. This new coverage provides investors with insights into the potential performance and valuation of Domino's Pizza in the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Domino's Pizza Inc (DPZ, Financial) is $483.07 with a high estimate of $559.00 and a low estimate of $370.00. The average target implies an upside of 4.00% from the current price of $464.48. More detailed estimate data can be found on the Domino's Pizza Inc (DPZ) Forecast page.
Based on the consensus recommendation from 35 brokerage firms, Domino's Pizza Inc's (DPZ, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Domino's Pizza Inc (DPZ, Financial) in one year is $480.53, suggesting a upside of 3.46% from the current price of $464.48. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Domino's Pizza Inc (DPZ) Summary page.
DPZ Key Business Developments
Release Date: April 28, 2025
- Income from Operations: Increased 1.4% in Q1, excluding foreign currency impact.
- Global Retail Sales Growth: 4.7% increase, excluding foreign currency impact.
- US Retail Sales Growth: 1.3% increase, driven by net store growth.
- Same-Store Sales: Declined 0.5% in the US.
- Carry-Out Business Comps: Up 1%.
- Delivery Business Comps: Down 1.5%.
- US Store Count: Added 17 net new stores, totaling 7,031.
- International Retail Sales Growth: 8.2% increase, excluding foreign currency impact.
- International Same-Store Sales: Increased 3.7%.
- Net Store Changes: Decrease of 25 stores internationally, primarily due to closures in Japan.
- Share Repurchase: Approximately 115,000 shares repurchased at an average price of $434, totaling $50 million.
- Share Repurchase Authorization Remaining: $764 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Domino's Pizza Inc (DPZ, Financial) achieved market share gains in both US and international markets despite consumer and industry headwinds.
- The launch of the Parmesan Stuffed Crust Pizza has been well-received, with high customer satisfaction scores and a strong mix of orders.
- The partnership with DoorDash is expected to significantly enhance delivery capabilities and is anticipated to be approximately 50% incremental.
- Domino's Pizza Inc (DPZ) continues to drive renowned value through national promotions and rewards programs, which have been effective in a challenging economic environment.
- The company has made strategic organizational changes to improve efficiency and align with its Hungry for MORE strategy, which is expected to drive long-term growth.
Negative Points
- Same-store sales in the US declined by 0.5%, slightly below expectations, due to negative traffic and a decline in delivery business.
- The delivery business continues to be impacted by macroeconomic pressures affecting low-income consumers.
- Net store growth in the US was modest, with only 17 net new stores added in the first quarter.
- International net store count decreased by 25 due to closures by Domino's Pizza Enterprises, primarily in Japan.
- The company faces potential geopolitical pressures that could impact international sales and growth.
