Domino’s Pizza stock rating reiterated at Outperform by BMO Capital

Published 22/07/2025, 16:02
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Investing.com - BMO Capital has reiterated its Outperform rating and $540.00 price target on Domino’s Pizza (NASDAQ:DPZ), despite mixed second-quarter results. The target represents a 14% upside from the current price of $471.69, with analyst targets ranging from $340 to $594.

Domino’s Pizza reported second-quarter 2025 earnings per share of $3.81, which fell short of the consensus estimate of $3.94, according to BMO Capital.

The earnings miss included approximately $0.27 per share impact from a mark-to-market adjustment related to Domino’s China investment, partially offset by a refranchising gain.

U.S. comparable sales increased 3.4%, exceeding the consensus expectation of 2.0%, with growth across both delivery and carryout segments.

Domino’s Pizza reaffirmed its 2025 guidance, with the exception of foreign exchange impact, which is now expected to create a 1% headwind to earnings before interest and taxes.

In other recent news, Domino’s Pizza reported its second-quarter 2025 operating results, with revenues slightly exceeding consensus expectations by $2 million. The pizza chain achieved U.S. comparable sales growth of 3.4%, attributed to increased traffic, pricing adjustments, and its popular Stuffed Crust offering. Domino’s also experienced a 1.5% improvement in delivery sales and a 5.8% increase in carryout sales year-over-year. Despite these positive sales figures, earnings per share were $3.81, which was below both Loop Capital’s estimate of $3.91 and the consensus forecast of $3.95.

In response to these results, several analyst firms adjusted their price targets for Domino’s Pizza. UBS maintained its Buy rating with a price target of $540, citing strong sales momentum. Benchmark also raised its price target to $540 while maintaining a Buy rating. Loop Capital increased its target to $574, continuing their Buy stance, while Wells Fargo (NYSE:WFC) and Bernstein raised their targets to $490, with Wells Fargo maintaining an Equal Weight rating and Bernstein a Market Perform rating. These developments reflect the company’s robust sales performance and market share gains in both domestic and international markets.

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