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Investing.com - Benchmark raised its price target on Domino’s Pizza (NASDAQ:DPZ) to $540.00 from $535.00 on Tuesday, while maintaining a Buy rating following the company’s second-quarter earnings report. This aligns with broader market sentiment, as InvestingPro data shows 13 analysts have recently revised their earnings estimates upward for the upcoming period.
Domino’s Pizza reported its second-quarter 2025 operating results on Monday, with revenues slightly exceeding consensus expectations by $2 million, despite refranchising 36 company stores during the quarter.
The pizza chain delivered U.S. systemwide same-store sales growth of 3.4%, significantly outperforming the consensus estimate of 1.9%, while also achieving operating margin performance that was 50 basis points stronger than expected.
The company’s general and administrative spending came in $5 million below Benchmark’s estimate, contributing to adjusted earnings per share of $4.09 versus consensus of $3.95, and adjusted EBITDA of $242 million compared to expectations of $237 million.
Benchmark cited Domino’s return to more normalized international unit growth rates and continuing strong relative same-store sales performance driven by loyalty programs, new products, and the DoorDash (NASDAQ:DASH) launch as factors in its decision to raise the price target, which represents 21 times Benchmark’s revised fiscal year 2026 EBITDA estimate of $1.12 billion.
In other recent news, Domino’s Pizza reported earnings per share of $3.81 for the second quarter of 2025, which fell short of both Loop Capital’s estimate of $3.91 and the consensus forecast of $3.95. Despite this, the company showed strong U.S. comparable sales growth of 3.4%, driven by higher traffic, a 1.4% increase in pricing, and enhanced check values from its Stuffed Crust offering. Delivery sales improved by 400 basis points to 1.5%, while carryout sales grew by 5.8% year-over-year.
Loop Capital raised its price target for Domino’s Pizza to $574, maintaining a Buy rating, while Wells Fargo (NYSE:WFC) and Bernstein both increased their price targets to $490, with Wells Fargo maintaining an Equal Weight rating and Bernstein a Market Perform rating. Morgan Stanley (NYSE:MS) also raised its price target to $520, maintaining an Overweight rating due to Domino’s solid performance and execution on key initiatives. Citi maintained a Neutral rating with a $500 price target, noting potential top-line growth as third-party delivery integration progresses. These developments highlight continued confidence among analysts in the company’s strategic initiatives and growth prospects.
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