DOM: Leadership Transition And Buybacks Will Drive Future Share Price Upside

Analysts have modestly lowered their price target on Domino's Pizza Group, trimming estimated fair value from approximately £2.75 to about £2.46 per share. A higher discount rate and a lower future valuation multiple more than offset upgrades to revenue growth and profit margin assumptions.

What's in the News

• Chief executive Andrew Rennie has stepped down with immediate effect after a sharp fall in the share price over the past year, with chief operating officer Nicola Frampton taking over as interim CEO while a permanent successor is sought (company announcement).
• Domino's Pizza Group has appointed experienced FTSE executive Andrew Andrea as its next chief financial officer, joining in March 2026 from C&C Group. Current CFO Edward Jamieson departs by mutual agreement and Richard Snow assumes the role on an interim basis (company announcement).
• The company is holding an Analyst and Investor Day focused on growth opportunities in the UK and Ireland. Topics include loyalty rollout plans, digital and data initiatives, supply chain automation, new store formats, and capital allocation priorities such as share buybacks and mergers and acquisitions (company event brief).
• Domino's Pizza Group has launched CHICK N DIP, a chicken focused sub brand being trialled in 187 stores in northwest England and Northern Ireland. The initiative aims to tap into the fast growing casual chicken market using existing supply chain infrastructure and kitchens (product announcement).

Valuation Changes

• Fair value estimate was reduced modestly from approximately £2.75 to about £2.46 per share, reflecting a lower implied upside for the stock.
• The discount rate edged up slightly from around 10.99 percent to about 11.02 percent, increasing the hurdle rate applied to future cash flows.
• Revenue growth was raised moderately from roughly 3.47 percent to about 4.14 percent, reflecting a somewhat more optimistic top-line outlook.
• The net profit margin increased meaningfully from about 10.08 percent to approximately 11.59 percent, indicating higher expected profitability.
• The future P/E multiple was cut significantly from roughly 19.5 times to about 14.9 times earnings, exerting downward pressure on the overall valuation despite stronger operating assumptions.