Loop Capital raises Domino’s Pizza stock price target to $574 on strong comps

Published 22/07/2025, 13:30
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Investing.com - Loop Capital has raised its price target on Domino’s Pizza (NASDAQ:DPZ) to $574.00 from $564.00 while maintaining a Buy rating following the company’s second-quarter earnings report. The new target aligns with the broader analyst sentiment, as InvestingPro data shows 13 analysts have recently revised their earnings estimates upward, with price targets ranging from $340 to $594.

Domino’s Pizza reported earnings per share of $3.81 for the second quarter of 2025, falling short of Loop Capital’s estimate of $3.91 and the consensus forecast of $3.95. The company maintains strong profitability metrics, with a gross profit margin of 28.5% and return on assets of 32.6% over the last twelve months.

Despite the earnings miss, the company delivered stronger-than-expected same-store sales growth, with U.S. franchised locations posting a 3.4% increase, exceeding both Loop Capital’s projection of 2.5% and the consensus estimate of 2.1%.

International comparable sales grew 2.4% during the quarter, also surpassing Loop Capital’s forecast of 1.0% growth and the consensus expectation of 1.7%.

Loop Capital’s new price target is based on approximately 30 times its 2026 earnings per share estimate, compared to its previous valuation of about 32 times the 2025 estimate.

In other recent news, Domino’s Pizza reported its second-quarter earnings, showing notable growth in both domestic and international markets. The company achieved a 3.4% increase in U.S. comparable sales, surpassing the consensus expectation of 2.5%. International same-store sales also exceeded expectations, growing by 2.4% compared to the anticipated 1%. These results were bolstered by the popularity of Domino’s Stuffed Crust offering and improvements in delivery and carryout sales.

Analyst firms have responded positively to these results, with Wells Fargo (NYSE:WFC), Bernstein SocGen Group, and Morgan Stanley (NYSE:MS) all raising their price targets for Domino’s Pizza. Wells Fargo increased its target to $490, while Bernstein raised its target to the same amount, citing market share gains. Morgan Stanley set a higher target of $520, acknowledging the company’s solid performance and execution on key initiatives.

Meanwhile, BTIG reiterated its Buy rating with a $530 price target, highlighting strong sales and significant upside in operating profit. Citi maintained a Neutral rating but noted potential for top-line growth as third-party delivery integration progresses. These recent developments reflect a positive outlook from analysts, driven by Domino’s strong sales performance and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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