Citi analyst Jon Tower has maintained their neutral stance on DPZ stock, giving a Hold rating on April 2.
Jon Tower has given his Hold rating due to a combination of factors influencing Domino’s Pizza’s current and future performance. The first quarter is anticipated to be challenging for the company’s same-store sales in the U.S., with a slight decline expected compared to the market’s modest growth projection. This is partly due to the slower-than-expected demand shift following the launch of the Stuffed Crust product and uncertainties surrounding the integration of the DASH platform amidst a weakening core delivery business.
Additionally, there are concerns about achieving the necessary 3% U.S. comparable growth in 2025, which is crucial given the company’s current unit growth falling short of previous targets and ongoing global economic uncertainties. The report also highlights potential risks related to the expansion of new products and third-party delivery services, as well as challenges in managing costs associated with tariffs and equipment. These factors contribute to a cautious outlook, justifying the Hold rating on Domino’s Pizza’s stock.
In another report released on April 2, Wells Fargo also maintained a Hold rating on the stock with a $420.00 price target.
Based on the recent corporate insider activity of 88 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DPZ in relation to earlier this year.