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Tuesday - Loop Capital has adjusted its price target on Domino’s Pizza (NASDAQ:DPZ) stock to $555 from the previous $559 while sustaining a Buy rating on the shares. Currently trading at $455.64, the stock maintains a GOOD financial health score according to InvestingPro analysis, though 12 analysts have recently revised their earnings expectations downward. The revision follows Domino’s Pizza’s fourth-quarter earnings report, which revealed an earnings per share (EPS) of $4.89. This figure was slightly below the consensus estimate of $4.90 and under Loop Capital’s expectation of $5.13. With a market capitalization of $15.74 billion and a P/E ratio of 27.54x, InvestingPro data indicates the stock is trading at a premium relative to its near-term earnings growth potential.
Domino’s U.S. franchised same-store sales saw a marginal increase of 0.5% in the quarter, which did not meet Loop Capital’s anticipated 2.5% growth or the consensus projection of 1.4%. This performance was also less favorable than the 2.0-2.5% growth Loop Capital uncovered in their most recent checks, dated January 24, 2025.
Despite the domestic comp shortfall, Domino’s international same-store sales experienced a 2.7% rise in the fourth quarter. This growth was slightly below Loop Capital’s forecast of 3.0% but surpassed the consensus estimate of a 1.3% increase. The company’s overall revenue grew by 5.07% in the last twelve months, demonstrating steady expansion. For deeper insights into Domino’s performance metrics and growth potential, access the comprehensive Pro Research Report available on InvestingPro.
Loop Capital’s decision to maintain the Buy rating but lower the price target is based on 32 times their revised 2025 EPS estimate for Domino’s Pizza. The firm’s commentary pointed out the mixed results of the fourth quarter, with the EPS and U.S. same-store sales not reaching the expected figures, while international performance was more robust than consensus.
In other recent news, Domino’s Pizza reported its fourth-quarter earnings for 2024, revealing a slight miss on both earnings per share (EPS) and revenue compared to analyst expectations. The company posted an EPS of $4.89, falling short of the forecasted $4.96, and revenue of $1.44 billion, below the anticipated $1.49 billion. Despite these challenges, Domino’s achieved an 8% growth in operating income, demonstrating operational efficiencies. Meanwhile, Evercore ISI maintained a positive outlook on Domino’s, reiterating an Outperform rating with a $480 price target, citing potential for strong same-store sales growth in the latter half of 2025.
Morgan Stanley (NYSE:MS) also reiterated its Overweight rating with a $496 target, noting Domino’s guidance for approximately 3% U.S. same-store sales growth this year. Morgan Stanley’s forecast for Domino’s top-line figures has been modestly reduced for 2025 and 2026, with expectations of around 8% operating profit growth excluding foreign exchange impacts. TD Cowen analyst Andrew M. Charles reaffirmed a Buy rating and a $490 price target, highlighting the company’s strategic focus for 2025, including plans for new menu innovations.
Domino’s has extended its exclusive partnership with Uber (NYSE:UBER) Eats until May 1, with plans to start negotiations with other third-party food aggregators. Truist Securities sees the possibility of a partnership between DoorDash (NASDAQ:DASH) and Domino’s as very likely, which could significantly impact DoorDash’s business. These developments reflect Domino’s ongoing efforts to expand its presence on third-party delivery platforms and maintain its competitive edge in the market.
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