Update shared on13 Oct 2025
Fair value Decreased 1.40%Analysts have lowered their price target for Domino's Pizza, reducing fair value expectations by approximately $7 to $502. They cite cautious views on demand trends and ongoing growth challenges.
Analyst Commentary
Recent analyst updates on Domino's Pizza reveal a mix of optimism about the company's fundamentals and caution regarding present demand and growth headwinds. Below is a breakdown of the prevailing perspectives among analysts covering the stock.
Bullish Takeaways- Some bullish analysts point to Domino's strong U.S. same-store sales in recent quarters, suggesting that performance targets for the year ahead remain achievable.
- Raising of price targets highlights confidence in Domino's ability to deliver at least moderate comparable sales growth into fiscal year 2025.
- There is a belief among optimistic analysts that recent earnings beats signal underlying operational strength, even as the share price remains subdued.
- Several analysts are concerned about choppy demand trends and softness in industry data heading into Q3, which may act as a headwind for valuation upside.
- Persistent international growth challenges are noted as a key risk in the near term, which impacts expectations for broader expansion and overall execution.
- Valuation downside risk is cited due to more conservative assumptions for same-store sales growth, particularly as consumer spending remains pressured.
- Some analysts now expect only modest flow-through from current results, which limits upside potential despite recent beats in comparable sales.
What's in the News
- Domino's Pizza is introducing two new Bread Bite flavors, Cinnamon and Garlic, which expand its oven-baked snack offerings. The new flavors are available in orders of 16 or 32 pieces and are included in the Mix & Match Deal. (Key Developments)
- From March 24, 2025 to June 15, 2025, Domino's repurchased 315,696 shares for $149.97 million, completing the buyback of 859,821 shares under its February 2024 program. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target: Lowered by approximately $7, falling from $509.24 to $502.13 per share.
- Discount Rate: Decreased marginally from 9.34% to 9.33%.
- Revenue Growth: Forecast has risen slightly, with estimates moving from 5.51% to 5.56%.
- Net Profit Margin: Projected margin increased, growing from 12.82% to 12.96%.
- Future P/E: Expected price-to-earnings ratio edged lower, decreasing from 29.58x to 28.83x.
Disclaimer
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