Domino's Pizza, Inc. (NASDAQ:DPZ) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

It's been a good week for Domino's Pizza, Inc. (NASDAQ:DPZ) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.4% to US$416. The result was positive overall - although revenues of US$1.1b were in line with what the analysts predicted, Domino's Pizza surprised by delivering a statutory profit of US$4.08 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Domino's Pizza's 28 analysts are now forecasting revenues of US$5.25b in 2026. This would be a decent 8.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 12% to US$19.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.26b and earnings per share (EPS) of US$19.51 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Domino's Pizza

The analysts reconfirmed their price target of US$500, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Domino's Pizza, with the most bullish analyst valuing it at US$597 and the most bearish at US$340 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Domino's Pizza shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Domino's Pizza's growth to accelerate, with the forecast 6.5% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Domino's Pizza is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$500, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Domino's Pizza analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Domino's Pizza you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.