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Investing.com - Citi maintained its Neutral rating and $500.00 price target on Domino’s Pizza (NASDAQ:DPZ) stock following the company’s second-quarter performance. The pizza chain, currently valued at $15.95 billion, has delivered a solid 11.89% return year-to-date and maintains an impressive 11-year streak of dividend increases, according to InvestingPro data.
The pizza chain performed better than anticipated in the second quarter, suggesting top-line growth for the remainder of the year as third-party delivery integration fully implements with marketing support.
Domino’s Pizza reiterated its 3% U.S. comparable sales guidance despite the ramping up of a core comp driver (third-party delivery), which Citi noted partially explains the stock’s choppy trading performance.
Citi observed that investors may have been surprised by indications that Domino’s could add new equipment like fryers to its stores, potentially shifting focus beyond pizza to open new growth channels for franchisees.
The firm believes improving one-year U.S. comparable growth will likely drive the narrative in coming months, pushing shares higher, though questions remain about operations and competitive response in categories where Domino’s lacks volume and value advantages.
In other recent news, Domino’s Pizza reported its second-quarter 2025 earnings, which revealed a slight miss on earnings per share (EPS), posting $3.81 compared to the forecasted $3.94. However, revenue met expectations at $1.15 billion, with global retail sales growing by 5.6%, driven by same-store sales and net store growth. Morgan Stanley (NYSE:MS) raised its price target for Domino’s Pizza to $520, maintaining an Overweight rating, due to the company’s solid performance and market share gains in the quick-service restaurant industry. BTIG reiterated its Buy rating and $530 price target for Domino’s, highlighting strong sales growth and a significant upside in operating profit, despite a modest initial contribution from its partnership with DoorDash (NASDAQ:DASH). Domino’s management expressed openness to adding fryers to restaurants, which could enhance competitiveness in the chicken and wing category. The company also completed a national rollout with DoorDash, which is expected to contribute more significantly to sales in the coming quarters. Analysts acknowledged ongoing debates about Domino’s long-term growth beyond 2026, but the firm remains optimistic about achieving or exceeding near-term financial targets.
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