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Investing.com - Loop Capital has reiterated its Buy rating and $564.00 price target on Domino’s Pizza (NASDAQ:DPZ), following the firm’s latest franchise checks. With a current market capitalization of $15.73 billion and P/E ratio of 26.11x, InvestingPro analysis suggests the stock is trading above its Fair Value, though it maintains relatively low price volatility.
The research firm’s channel checks indicate Domino’s same-store sales growth exceeded expectations in fiscal second quarter, which ran from March 23 to June 14, 2025. Franchisee feedback suggests comparable sales increased approximately 2.5% during the period, aligning with Loop Capital’s estimate but surpassing the consensus forecast of 1.9%. This growth complements the company’s broader revenue growth of 4.28% over the last twelve months. For deeper insights into DPZ’s performance metrics and growth potential, InvestingPro offers comprehensive analysis with 8 additional key insights.
On a two-year stacked basis, the 2.5% growth in Q2 represents a 7.3% gain, showing acceleration from the 5.1% two-year stack reported in Q1 2025. However, the implied three-year stack of 7.2% marks a deceleration from the 8.5% seen in the first quarter.
Early fiscal third quarter performance, which began June 15 and runs through September 5, appears softer than anticipated. Loop Capital’s contacts indicate same-store sales are currently up 2.0-2.5%, tracking below both the firm’s and consensus estimates of 3.5% growth for the full quarter.
Loop Capital’s $564 price target is based on approximately 32 times its 2025 earnings per share estimate for Domino’s Pizza.
In other recent news, Domino’s Pizza reported a slight dip in its first-quarter revenue, recording $1.11 billion against the projected $1.13 billion. The U.S. systemwide same-store sales also showed a minor decline of 0.5%, compared to the anticipated 0.2% increase. Despite these figures, Domino’s experienced a stronger supply chain margin, helping to offset lower-than-expected adjusted earnings per share of $3.99. Analysts have mixed views on Domino’s future performance. BMO Capital reiterated its Outperform rating, maintaining a $540 price target, citing market share gains and sales momentum. Conversely, Redburn-Atlantic initiated coverage with a Sell rating and a $340 target, highlighting challenges such as weak organic traffic and potential margin pressures. UBS maintained a Buy rating with a $540 target, confident in Domino’s growth prospects supported by strategic initiatives. Meanwhile, JPMorgan raised its price target to $460, noting positive trends in domestic same-store sales, although expressing caution about certain growth strategies.
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