Domino’s Pizza stock maintains Buy rating at UBS on sales momentum

Published 10/09/2025, 15:06
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Investing.com - UBS has reiterated its Buy rating and $540.00 price target on Domino’s Pizza (NASDAQ:DPZ), citing sustainable sales momentum and market share gains in the U.S. market. According to InvestingPro data, the stock is currently trading near Fair Value, with analyst targets ranging from $340 to $594.

The firm expressed confidence in Domino’s ability to achieve its long-term same-store sales target of 3%+ for 2026 and beyond, supported by existing and future strategic initiatives.

UBS highlighted several growth drivers for Domino’s, including contributions from third-party aggregator partnerships, menu innovation, a revamped loyalty program, carryout share gain opportunities, and value/promotional activities.

The analysis noted management’s proactive approach to supporting continued market share gains, though specific future plans weren’t disclosed. UBS also mentioned Domino’s strong international positioning and store development, with the exception of Domino’s Pizza Enterprises, where the company is actively working to address issues.

UBS believes strong second-half U.S. same-store sales momentum and improved visibility into catalysts will support a solid sales trajectory and market share gains in 2026, potentially driving share price appreciation.

In other recent news, Domino’s Pizza announced a $1 billion debt refinancing plan, intending to issue new securitized notes. The proceeds from these notes, combined with approximately $150 million in cash, will be used to retire existing debt obligations, including full prepayment of certain senior secured notes. RBC Capital reiterated its Outperform rating on Domino’s Pizza following the company’s better-than-expected second-quarter earnings results, highlighting strong same-store sales growth and lower general and administrative expenses. Meanwhile, BMO Capital maintained its Outperform rating despite mixed results, noting that Domino’s reported earnings per share of $3.81, which was below the consensus estimate of $3.94. TD Cowen also reiterated its Buy rating, maintaining a price target of $510, and expressed confidence in Domino’s commitment to achieving same-store sales growth of 3% or higher from 2026 to 2028. The firm acknowledged improving execution despite challenges in the quick service restaurant category and suggested that patient investors may be rewarded. These developments reflect ongoing strategic efforts and analyst confidence in Domino’s future performance.

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