Jon Tower, an analyst from Citi, maintained the Hold rating on Domino’s Pizza. The associated price target remains the same with $500.00.
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Jon Tower has given his Hold rating due to a combination of factors affecting Domino’s Pizza’s current market position. The company faces challenges such as increasing competition from non-restaurant food options and uncertainties in its international expansion plans, which are not expected to be resolved in the short term. This uncertainty makes it difficult for investors to anticipate significant changes in the company’s top-line performance.
Additionally, while Domino’s is focusing on key sales drivers like third-party delivery services and promotional activities, there is limited evidence of substantial impact on sales growth. The effectiveness of these strategies, along with concerns about the company’s debt due in October 2025, contribute to a cautious outlook. As a result, Jon Tower believes that the stock should be held rather than bought or sold at this time, reflecting a balanced view of potential risks and opportunities.
According to TipRanks, Tower is a 5-star analyst with an average return of 13.2% and a 60.19% success rate. Tower covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, Starbucks, and Cracker Barrel.