UBS maintains Buy on Domino’s Pizza stock, $540 target

On Tuesday, UBS reiterated its Buy rating on Domino’s Pizza (NASDAQ:DPZ) shares, maintaining a $540.00 price target. Currently trading at $485.73, the stock sits between analysts’ targets ranging from $414 to $564, with InvestingPro data indicating the company is trading above its Fair Value. Analysts at UBS have expressed confidence in the pizza chain’s potential for increased sales momentum in the United States, supported by various initiatives. With revenue growth of 4.28% over the last twelve months and a strong financial health score of "GOOD" according to InvestingPro, they anticipate that Domino’s will continue to open more stores globally in the upcoming years.

The firm highlighted that despite the potential macroeconomic pressures this year, Domino’s Pizza is well-equipped with key sales drivers and core competitive advantages. The company has maintained dividend payments for 14 consecutive years with a 15.23% dividend growth in the last twelve months, demonstrating financial resilience. These factors are expected to contribute to the company’s market share growth and support its performance into the forecasted year of 2026. For deeper insights into DPZ’s financial health and growth prospects, InvestingPro offers 8 additional exclusive tips and a comprehensive Pro Research Report.

UBS analysts based their outlook on the UBS Evidence Lab 2025 Quick Service Restaurant (QSR) Survey, which evaluated the impact of Domino’s strategic initiatives on brand perception, visit intention, and the potential to boost traffic and sales momentum. The survey results indicate that consumers have a strong affinity for the Domino’s brand, with various attributes resonating well, including perceived value and positive intent to visit.

The firm’s analysis suggests that Domino’s Pizza remains one of their top picks in the industry. They believe there is potential upside as the company’s same-store sales in the United States are expected to strengthen. With a gross profit margin of 28.44% and a return on assets of 33.57%, UBS also sees a compelling path of catalysts that could support positive customer traffic and accelerate net unit growth in the years ahead.

In other recent news, Domino’s Pizza has seen several analyst firms adjust their price targets and ratings following its first-quarter financial results for 2025. Domino’s reported earnings per share of $4.33, surpassing the consensus estimate of $4.06, which led BMO Capital Markets to raise its price target to $540 while maintaining an Outperform rating. Similarly, UBS kept a Buy rating with a $540 price target, expressing optimism about the company’s strategic initiatives to boost U.S. same-store sales in the latter half of the year. Benchmark increased its price target to $535, up from $520, highlighting Domino’s potential for strong same-store sales performance driven by loyalty programs and new product launches.

On the other hand, JPMorgan and Bernstein both set a price target of $460, with JPMorgan noting caution due to factors like a longer ramp-up period for third-party platforms and flat year-over-year demand in the first quarter. Despite these challenges, Domino’s international segment outperformed expectations, with a 3.7% increase in comparable sales. Analysts from Bernstein praised Domino’s operational discipline, noting that the company is effectively managing external pressures without altering its financial guidance. The company’s strategic initiatives, such as the introduction of a Parmesan Stuffed Crust pizza and a partnership with DoorDash (NASDAQ:DASH), are expected to enhance sales growth. These developments reflect a varied outlook among analysts, with some expressing confidence in Domino’s growth potential while others remain cautious about certain market dynamics.

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