Domino's Pizza (DPZ) AI Stock Analysis

• Market Cap: $13.64B
• Dividend Yield: 1.69%
• Average Volume (3M): 683.09K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.77
• Revenue Growth: 3.92%
• EPS Growth: 4.98%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 4.08
• Shares Outstanding: 33,786,217
• 10 Day Avg. Volume: 558,117
• 30 Day Avg. Volume: 683,091
• PEG Ratio: 1.83
• Price to Book (P/B): -3.69
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 28.54
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 6.12
• Enterprise Value/Gross Profit: 15.39
• Enterprise Value/Ebitda: 27.55
• 1Y Price Target: $496.95
• Price Target Upside: 23.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 58 Neutral
• Price Target: $425.00 ▲(5.29% Upside)

Domino's Pizza's overall stock score is primarily influenced by its strong financial performance, despite high leverage and negative equity. The technical analysis indicates bearish momentum, which is a concern. The valuation is moderate, providing some income through dividends but not offering a strong value proposition. The absence of significant corporate events or earnings call data in this analysis means these factors did not influence the score.

Positive Factors

Revenue Growth

Domino's consistent revenue growth, surpassing expectations, indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow growth enhances Domino's financial flexibility, enabling investment in strategic initiatives and providing a buffer against economic uncertainties.

Brand Refresh

The brand refresh aims to modernize Domino's image, potentially attracting new customers and enhancing brand loyalty, supporting long-term market positioning.

Negative Factors

High Leverage

High leverage poses risks to financial stability, potentially limiting Domino's ability to invest in growth opportunities and manage economic downturns effectively.

Macroeconomic Challenges

Intensifying macroeconomic conditions could impact consumer spending and Domino's sales, posing challenges to sustaining growth and profitability in the near term.

International Growth Challenges

International store closures hinder global expansion efforts, potentially affecting Domino's ability to capture market share and achieve growth targets abroad.

Domino's Pizza Business Overview & Revenue Model

Company Description

Domino's Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain. The company offers pizzas under the Domino's brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products. As of January 2, 2022, the company operated approximately 18,800 stores in 90 markets. Domino's Pizza, Inc. was founded in 1960 and is based in Ann Arbor, Michigan.

How the Company Makes Money

Domino's Pizza generates revenue primarily through the sale of pizzas and other food products. The company's revenue model is multifaceted, consisting of both company-owned and franchised stores. Franchise fees, which include initial franchise agreements and ongoing royalties based on sales, are significant revenue streams. Additionally, Domino's earns income through digital sales channels, including mobile app and online orders, which have become increasingly popular. The company has established partnerships with third-party delivery services and has also invested in its own delivery fleet, enhancing its delivery capabilities. Promotional deals, loyalty programs, and strategic marketing campaigns further contribute to driving sales and customer retention, making these factors crucial to its earnings.

Domino's Pizza Financial Statement Overview

Summary

Domino's Pizza shows strong operational performance with consistent revenue growth and profitability. However, the high leverage and negative equity pose potential risks to financial stability. The company's robust cash flow generation provides a buffer against these risks, supporting its ongoing operations and strategic initiatives.

Income Statement

Domino's Pizza shows a solid performance in its income statement with consistent revenue growth and strong profit margins. The TTM data indicates a slight increase in revenue growth rate and stable gross and net profit margins, reflecting efficient cost management and profitability. However, the growth rate has slowed compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, which is a significant risk factor. Despite this, the company maintains a stable asset base. The negative return on equity indicates challenges in generating returns for shareholders, which could impact long-term financial stability.

Cash Flow

Cash flow analysis shows a positive trajectory with strong free cash flow growth and a healthy free cash flow to net income ratio. The operating cash flow to net income ratio is also robust, indicating efficient cash generation relative to net income. These metrics highlight Domino's ability to generate cash, supporting its operational and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	3.34B	4.71B	4.48B	3.62B	3.43B	2.79B
Gross Profit	1.33B	1.85B	1.73B	1.40B	1.30B	865.99M
EBITDA	741.78M	1.01B	929.55M	693.38M	628.69M	567.06M
Net Income	427.67M	584.17M	519.12M	400.71M	361.97M	277.90M
Balance Sheet
Total Assets	1.81B	1.74B	1.67B	1.38B	907.38M	836.75M
Cash, Cash Equivalents and Short-Term Investments	272.86M	186.13M	114.10M	190.62M	25.44M	35.77M
Total Debt	5.21B	5.20B	5.21B	4.35B	3.53B	3.15B
Total Liabilities	5.79B	5.70B	5.75B	4.80B	3.95B	3.57B
Stockholders Equity	-3.97B	-3.96B	-4.07B	-3.42B	-3.04B	-2.74B
Cash Flow
Free Cash Flow	477.24M	512.01M	485.47M	411.38M	274.28M	249.03M
Operating Cash Flow	539.59M	624.90M	590.86M	496.95M	394.17M	339.04M
Investing Cash Flow	-12.14M	-31.23M	-106.92M	-27.85M	-88.26M	-149.00M
Financing Cash Flow	-503.65M	-532.22M	-476.36M	-222.79M	-322.80M	-197.15M

Domino's Pizza Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 403.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DPZ, the sentiment is Negative. The current price of 403.63 is below the 20-day moving average (MA) of 412.98, below the 50-day MA of 430.97, and below the 200-day MA of 452.75, indicating a bearish trend. The MACD of -6.93 indicates Positive momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 18.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DPZ.

Domino's Pizza Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EAT	―	$4.67B	10.89	249.07%	―	23.18%	138.17%
PZZA	―	$1.58B	21.28	―	3.62%	-1.46%	8.10%
YUM	―	$38.68B	27.53	―	2.01%	11.30%	-7.82%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WING	―	$5.98B	35.77	―	0.52%	22.74%	87.07%
WEN	―	$1.61B	8.80	99.35%	9.25%	1.31%	-1.46%
DPZ	―	$13.64B	23.59	―	1.69%	3.92%	4.98%

Domino's Pizza Corporate Events

Domino’s Pizza Reports Strong Q3 2025 Growth

Domino’s Pizza Inc., the world’s largest pizza company, operates in the quick-service restaurant sector, specializing in both delivery and carryout services with a significant global presence. In its third quarter of 2025, Domino’s reported a 6.3% growth in global retail sales, excluding foreign currency impacts, with U.S. same-store sales increasing by 5.2% and international same-store sales growing by 1.7%. The company also achieved a net store growth of 214 locations globally, reflecting its expansion strategy.

Domino’s Pizza Earnings Call Highlights Strong U.S. Growth

Domino’s Pizza Inc. recently held its earnings call, revealing a generally positive sentiment driven by strong growth in its U.S. business. The company highlighted successful promotions and strategic initiatives as key factors in its performance, though it acknowledged ongoing macroeconomic challenges and hurdles in international growth.

Domino’s Pizza Completes $1 Billion Refinancing Transaction

On September 5, 2025, Domino’s Pizza completed a significant refinancing transaction involving the issuance of $1 billion in senior secured notes, aimed at restructuring its existing debt. This move is expected to optimize the company’s financial structure by replacing older notes with new ones, potentially impacting its leverage and financial flexibility, and is part of a broader strategy to manage its revenue-generating assets more effectively.

The most recent analyst rating on (DPZ) stock is a Buy with a $511.00 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the DPZ Stock Forecast page.

Domino’s Pizza Announces $1 Billion Notes Issuance

On August 12, 2025, Domino’s Pizza announced a purchase agreement for the issuance and sale of $1 billion in senior secured notes, divided into two tranches with different maturity terms. This financial move, involving several of its subsidiaries and major financial institutions as initial purchasers, is expected to close on September 5, 2025, and is designed to strengthen the company’s financial position and support its strategic initiatives.

The most recent analyst rating on (DPZ) stock is a Hold with a $450.00 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the DPZ Stock Forecast page.

Domino’s Pizza Announces $1 Billion Refinancing Plan

On August 6, 2025, Domino’s Pizza announced a refinancing transaction involving its subsidiaries issuing $1 billion in new securitized notes to retire existing debt and entering a new $320 million variable funding note facility. This move aims to optimize the company’s financial structure, although its success is contingent on market conditions and there is no assurance of completion.

The most recent analyst rating on (DPZ) stock is a Hold with a $450.00 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the DPZ Stock Forecast page.