Update shared on 27 Nov 2025
Fair value Decreased 0.32%Analysts have slightly lowered their price target for Domino's Pizza by approximately $2 to around $497. They cited mixed near-term sales trends, while expressing continued confidence in management's strategic initiatives and long-term growth levers.
Analyst Commentary
Recent updates from analysts provide a nuanced perspective on Domino's Pizza's outlook, highlighting both areas of confidence and lingering industry concerns. The following summarizes the prevailing sentiments among the coverage:
Bullish Takeaways- Bullish analysts point to the company's ability to sustain 3% or higher same-store sales growth into 2026. This is viewed as a critical valuation support.
- Innovative menu offerings and expanded third-party delivery partnerships have helped Domino's outperform the broader quick-service pizza segment. This signals effective strategic execution.
- Evidence of robust U.S. same-store sales growth in the most recent quarter has rekindled optimism about Domino’s ability to leverage multiple growth drivers, including value-oriented and premium product initiatives.
- Bearish analysts caution that near-term demand trends remain choppy, prompting more conservative expectations for same-store sales growth.
- Concerns persist regarding international growth, which is seen as challenged and contributing to some reductions in price targets.
- Weak industry data and heightened consumer spending concerns have created a more cautious atmosphere ahead of earnings. Some expect moderate downside risk in the upcoming quarterly results.
What's in the News
- Domino's Pizza is introducing the Spicy Chicken Bacon Ranch Pizza to its Specialty Pizzas menu, available starting November 10, 2025. This new pizza features grilled chicken, ranch, smoked bacon, jalapenos, and Buffalo sauce. The launch is being promoted with TV ads in partnership with Retta. (Key Developments)
- The company recently expanded its oven-baked Bread Bites lineup by adding Cinnamon and Garlic flavors. These new menu options are available as part of the Mix & Match Deal, allowing customers to select two or more menu items for $6.99 each. (Key Developments)
- Between June and September 2025, Domino's repurchased 165,778 shares for $74.68 million, completing the buyback of over 1 million shares totaling $460.45 million under its previously announced program. (Key Developments)
Valuation Changes
- Fair Value Estimate has decreased modestly from $498.26 to $496.65, reflecting updated market assumptions.
- Discount Rate has edged down slightly from 9.20% to 9.16%, indicating a minor adjustment in perceived risk.
- Revenue Growth Forecast remains virtually unchanged, holding steady at approximately 5.43%.
- Net Profit Margin projection is unchanged at 13.03%.
- Future P/E Ratio has decreased fractionally, moving from 28.05x to 27.93x.
Disclaimer
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