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Investing.com - BMO Capital has reiterated its Outperform rating and $540.00 price target on Domino’s Pizza (NASDAQ:DPZ), which currently trades at $471.99 with a market capitalization of $16.2 billion, ahead of the company’s second-quarter 2025 earnings report due in 6 days.
The research firm expects Domino’s to deliver results that are in-line to better than expectations, despite what it describes as a "sluggish QSR pizza backdrop." BMO anticipates accelerating U.S. comparable sales, continued market share gains, and potential upside from supply chain margins and foreign exchange impacts. The company has demonstrated steady growth with revenue increasing 4.28% over the last twelve months to $4.7 billion.
BMO Capital believes Domino’s will likely reiterate its 2025 retail sales and operating profit growth outlooks, which would imply improved comparable sales trajectory in the second half of 2025 as various initiatives gain momentum.
The firm notes that investors remain primarily focused on U.S. comparable sales dynamics, including performance of the Stuffed Crust product and the DoorDash (NASDAQ:DASH) partnership, though debates about lapping these launches in 2026 will continue beyond the upcoming earnings report.
BMO views Domino’s improving sales trajectory and market share gains favorably and sees potential for multiple expansion in the stock’s valuation.
In other recent news, Domino’s Pizza is preparing for its second-quarter earnings report, with UBS maintaining a Buy rating and a $540 price target. UBS anticipates that Domino’s will continue to show strong U.S. same-store sales momentum, supported by partnerships like DoorDash and new menu innovations. Loop Capital also maintains a Buy rating, noting that Domino’s same-store sales growth exceeded expectations in the fiscal second quarter, although early third-quarter performance appears softer than anticipated. Meanwhile, Melius Research has initiated coverage with a Hold rating and a $500 price target, citing that much of the company’s strengths are already reflected in the current stock price. Morgan Stanley (NYSE:MS) has raised its price target to $514, maintaining an Overweight rating, and highlights the success of the stuffed crust pizza and other marketing initiatives. BMO Capital reiterates its Outperform rating with a $540 target, expressing confidence in Domino’s market share gains and ongoing momentum despite challenging conditions. Investors are keenly awaiting more detailed insights during the upcoming earnings announcement, particularly regarding the impact of partnerships and new offerings.
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