BMO Capital reiterates Domino’s Pizza stock rating on market share gains

BMO Capital Markets reiterated its Outperform rating and $540.00 price target on Domino’s Pizza (NASDAQ:DPZ), currently trading at $460.79 with a market capitalization of $15.77 billion, following investor meetings with the company’s CFO and investor relations team. According to InvestingPro, the company maintains a "GOOD" overall financial health score.

The meetings primarily addressed U.S. market share dynamics, the DoorDash (NASDAQ:DASH) partnership and its incrementality, plans to sustain sales momentum into 2026, and potential impacts from unrest in the Middle East.

Despite challenging macroeconomic conditions, Domino’s management expressed confidence in its outlook and ongoing market share gains, as well as its ability to maintain business momentum beyond 2025. The company has demonstrated strong financial stability, maintaining dividend payments for 14 consecutive years with a current yield of 1.53% and showing revenue growth of 4.28% over the last twelve months.

BMO Capital noted that specific insights about the DoorDash partnership and Stuffed Crust products were limited, with more details expected during the second-quarter earnings announcement. The firm also indicated that potential risks from Middle East tensions appear to be limited for the pizza chain.

The investment firm believes Domino’s shares are attractively valued, particularly considering the potential for comparable sales acceleration in upcoming quarters. However, InvestingPro analysis suggests the stock is currently trading above its Fair Value, with a P/E ratio of 25.98. Discover more insights and 8 additional ProTips with a comprehensive Pro Research Report, available exclusively for subscribers.

In other recent news, Domino’s Pizza has been the focus of several analyst reports and financial updates. Domino’s reported first-quarter revenue of $1.11 billion, slightly below the projected $1.13 billion, with U.S. same-store sales declining by 0.5%. Despite this, the international segment performed well, with comparable sales rising by 3.7%. Analysts from Benchmark, who maintain a Buy rating, raised their price target to $535, citing potential market share gains driven by loyalty programs and new product introductions. Meanwhile, UBS reiterated its Buy rating with a $540 target, emphasizing Domino’s potential for sales momentum in the U.S. and global store expansion. JPMorgan adjusted its price target to $460, noting promising domestic same-store sales trends but expressing caution about the ramp-up of third-party platforms. Bernstein also raised its target to $460, highlighting Domino’s operational efficiency amid economic challenges. However, Redburn-Atlantic initiated coverage with a Sell rating and a $340 target, pointing to challenges such as weak organic traffic and reliance on lower-income consumers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.