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Domino's Pizza
(LSE:DOM)
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Rating:67Neutral
Price Target:
209.00 p
▼(-1.32% Downside)
Action:Reiterated
Date:08/04/26
The score is anchored by mixed financial fundamentals: solid profitability and free cash flow, but materially weaker margins versus 2023 and an elevated-risk capital structure with negative equity. Offsetting this, technicals are bullish with the stock above major moving averages, and valuation is attractive given the modest P/E and high dividend yield. The latest earnings call supports the outlook with steady demand signals and a credible efficiency/loyalty roadmap, though near-term margin pressure and refinancing/leverage remain key risks.
Positive Factors
Resilient System Sales
Consistent like-for-like growth and higher order volumes indicate resilient customer demand. This supports franchisee sales, recurring royalty income and supply-chain volumes, providing a durable base for earnings even as pricing and consumer conditions fluctuate.
Negative Factors
High Leverage and Negative Equity
High debt relative to assets and persistently negative equity reduce financial resilience and limit balance-sheet flexibility. If operating performance weakens, refinancing, interest costs and capital allocation could place greater pressure on dividends and investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient System Sales
Consistent like-for-like growth and higher order volumes indicate resilient customer demand. This supports franchisee sales, recurring royalty income and supply-chain volumes, providing a durable base for earnings even as pricing and consumer conditions fluctuate.
Read all positive factors
Domino's Pizza (DOM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£804.43M
Dividend Yield5.41%
Average Volume (3M)1.34M
Price to Earnings (P/E)13.6
Beta (1Y)0.89
Revenue Growth5.72%
EPS Growth-21.86%
CountryUK
Employees2,592
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.16
Shares Outstanding384,868,620
10 Day Avg. Volume1,075,206
30 Day Avg. Volume1,343,751
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)-7.62
Price to Sales (P/S)0.98
P/FCF Ratio9.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£223.33Price Target Upside5.45% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.18
Revenue Forecast (FY)£712.37M
Domino's Pizza Business Overview & Revenue Model
Company Description
Domino's Pizza Group plc serves as the proprietary entity, responsible for the ownership, operation, and franchising of Domino's Pizza establishments. Its extensive network includes 1,172 stores operating across the United Kingdom, alongside 55 ad...
How the Company Makes Money
Domino’s primarily makes money through a franchise-driven model combined with supply chain operations. A significant portion of its system is operated by franchisees, and Domino’s earns revenue from these franchisees via (1) royalty fees based on ...
Domino's Pizza Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 09, 2027
Earnings Call Sentiment Positive
The call presented a constructive and execution-focused outlook: underlying demand is strong with consistent like-for-like growth, a promising CHICK 'N' DIP rollout, rising franchisee profitability and clear levers for margin improvement via supply chain automation and loyalty. Near-term headwinds include H1 margin dilution from investment, elevated franchisee costs affecting new-store economics, and refinancing considerations. Management emphasized discipline, prioritization and a credible plan to convert investments into improved margins and lower leverage over the next 2–3 years.Positive Updates
Consistent Like-for-Like Sales and System Volume Growth
Like-for-likes were positive every month in H1; orders/volume grew ~2% (orders used as proxy for volume) while price inflation was ~3%, supporting system sales growth and resilient demand.
Negative Updates
Margin Pressure in H1 from One-Off Investments
Margins were slightly behind in H1 due to one-off costs and investments to facilitate the automation program; benefits are expected to flow in H2 and into FY27–FY28 but near-term margin drag was acknowledged.
Read all updates
Q2-2026 Updates
Positive
Negative
Consistent Like-for-Like Sales and System Volume Growth
Like-for-likes were positive every month in H1; orders/volume grew ~2% (orders used as proxy for volume) while price inflation was ~3%, supporting system sales growth and resilient demand.
Read all positive updates
Company Guidance
Management reiterated confident FY26 expectations and said H1 showed strong system sales with positive like‑for‑likes every month; orders (used as a volume proxy) were up about 2% with roughly 3% price inflation and average customers order c.4.5x/year. They flagged chicken (launched Feb) helping mix and noted chicken market share moving from c.3.8% to c.4.2%, and confirmed 2.2m loyalty members today within a 14m customer base with a full loyalty rollout planned in Q4. Operationally they have 1,400+ stores (11 opened YTD), are investing in supply‑chain automation (SCC5 reroutes, a site upgrade removing an afternoon shift, dough/packing automation) that caused one‑off H1 costs and slightly lower margins but should drive efficiency from H2 into FY27/28; e‑commerce investment is c.£8m pa and maintenance CapEx run‑rate c.£20m. On balance sheet and capital allocation they have c.£600m facilities vs. monthly average net debt <£300m (including a £200m USPP tranche), expect leverage to fall toward ~1.5x over 2–3 years (peak allowed ~2.3x), will prioritize organic investment and dividends (inflation‑linked protection) and then debt reduction.Domino's Pizza Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
34
Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 707.50M | 685.40M | 664.50M | 679.80M | 600.30M | 560.80M |
| Gross Profit | 307.50M | 300.60M | 318.90M | 316.20M | 273.50M | 268.60M |
| EBITDA | 133.90M | 130.90M | 171.30M | 190.40M | 120.90M | 135.20M |
| Net Income | 59.40M | 58.60M | 90.20M | 115.00M | 81.60M | 78.30M |
Balance Sheet | ||||||
| Total Assets | 599.50M | 613.90M | 602.90M | 512.50M | 520.70M | 522.00M |
| Cash, Cash Equivalents and Short-Term Investments | 9.60M | 24.60M | 52.20M | 52.10M | 30.40M | 42.80M |
| Total Debt | 540.70M | 549.30M | 547.40M | 515.20M | 507.10M | 465.10M |
| Total Liabilities | 682.00M | 702.80M | 685.10M | 646.50M | 633.50M | 580.60M |
| Stockholders Equity | -82.30M | -88.30M | -82.20M | -134.00M | -112.80M | -58.60M |
Cash Flow | ||||||
| Free Cash Flow | 83.70M | 69.50M | 85.00M | 92.70M | 65.40M | 99.60M |
| Operating Cash Flow | 109.30M | 86.50M | 103.50M | 113.50M | 85.10M | 113.90M |
| Investing Cash Flow | 15.50M | 18.30M | -200.00K | 94.70M | 29.50M | 32.80M |
| Financing Cash Flow | -129.40M | -132.30M | -103.00M | -186.50M | -127.40M | -174.70M |
Domino's Pizza Technical Analysis
Positive
211.80
Price Trends
195.13
Positive
190.67
Positive
180.75
Positive
Market Momentum
4.06
Negative
62.31
Neutral
69.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DOM, the sentiment is Positive. The current price of 211.8 is above the 20-day moving average (MA) of 202.47, above the 50-day MA of 195.13, and above the 200-day MA of 180.75, indicating a bullish trend. The MACD of 4.06 indicates Negative momentum. The RSI at 62.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DOM.
Domino's Pizza Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | £804.43M | 13.58 | -69.64% | 5.41% | 5.72% | -21.86% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £1.48B | -53.78 | -65.76% | 2.24% | 4.58% | -24.15% | |
52 Neutral | £61.34M | -14.13 | -13.37% | ― | 14.97% | -557.14% | |
48 Neutral | £27.45M | -1.81 | 166.34% | ― | 8.81% | -354.42% | |
41 Neutral | £5.83M | -3.96 | -1952.32% | ― | -5.82% | -400.00% |
* Consumer Cyclical Sector Average
GB:DOM
Domino's Pizza
210.80
16.62
8.56%
GB:COM
Comptoir
4.75
0.60
14.46%
GB:DPP
DP Poland plc
6.50
-2.75
-29.73%
GB:SSPG
SSP Group plc
196.30
48.88
33.16%
GB:MEX
Tortilla Mexican Grill Ltd.
71.00
27.50
63.22%
Domino's Pizza Corporate Events
Regulatory Filings and Compliance
Domino’s Chair Ian Bull Buys 15,750 Shares After Dealings Notice Amended
Positive
Aug 12, 2026
Domino’s Pizza Group plc reported an amendment to a prior disclosure concerning director share dealings. The company clarified that chair Ian Bull purchased 15,750 ordinary shares in the group on 10 August 2026 at a price of £1.9997 per...
Regulatory Filings and Compliance
Domino’s Chair Boosts Stake with Share Purchase
Positive
Aug 11, 2026
Domino’s Pizza Group disclosed that its chair, Ian Bull, purchased 15,700 ordinary shares in the company on 10 August 2026 at a price of £1.9997 per share on the London Stock Exchange. The director share purchase may be interpreted by i...
Business Operations and StrategyExecutive/Board Changes
Domino’s Pizza Group ties new executive share awards to profit, cash and TSR targets
Positive
Aug 11, 2026
Domino’s Pizza Group has granted new long-term share awards to chief executive Nicola Frampton and chief financial officer Andrew Andrea under its 2022 Share Plan. The awards comprise performance share units, which vest after three years sub...
Business Operations and StrategyDividendsFinancial Disclosures
Domino’s Pizza Group Delivers Strong H1 Growth and Boosts Dividend
Positive
Aug 4, 2026
Domino’s Pizza Group reported a robust first half, with system sales up 6.1% and group revenue rising 6.7% as like-for-like sales grew 4.9%, helped by new CHICK ‘N’ DIP chicken products, the Italiano’s pizza range and a Wor...
Regulatory Filings and Compliance
Domino’s Pizza Group Updates Market on Voting Rights and Share Capital
Neutral
Aug 3, 2026
Domino’s Pizza Group plc has confirmed that, as of 31 July 2026, it has 384,868,623 issued ordinary shares admitted to trading, each carrying one voting right at general meetings. The disclosed share count provides the official denominator f...
Business Operations and StrategyRegulatory Filings and Compliance
Domino’s Pizza Group Keeps Employee Share Option Pool Unchanged
Positive
Jul 13, 2026
Domino’s Pizza Group plc reported that no new shares were issued under its various employee and savings-related share option and long-term incentive plans during the six-month period from 11 January to 11 July 2026. The balance of unallotted...
Regulatory Filings and Compliance
Domino’s Pizza Group Clarifies Share Capital and Voting Rights
Positive
Jul 1, 2026
Domino’s Pizza Group plc reported that as of 30 June 2026 it had 384,868,623 issued ordinary shares, each carrying one vote at general meetings and admitted to trading. The company highlighted that this share count should be used by investor...
Business Operations and StrategyExecutive/Board Changes
Domino’s Pizza Group Announces Board Change and Workforce Engagement Lead
Neutral
Jun 10, 2026
Domino’s Pizza Group plc has announced a change to its board, with independent non-executive director Mitesh Patel stepping down with immediate effect to focus on other commitments. Anne Murphy will take over as the designated non-executive ...
Regulatory Filings and Compliance
Domino’s Pizza Group Confirms Share Capital and Voting Rights
Neutral
Jun 1, 2026
Domino’s Pizza Group has confirmed that as of 31 May 2026 it has 384,868,623 issued ordinary shares, each carrying one voting right at general meetings. The disclosed share count provides the reference figure shareholders must use to assess ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.