Analyst Zachary Fadem of Wells Fargo maintained a Hold rating on Domino’s Pizza, boosting the price target to $490.00.
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Zachary Fadem has given his Hold rating due to a combination of factors influencing Domino’s Pizza’s current market position. The company’s recent quarterly performance exceeded expectations, with a notable increase in U.S. comparable sales and improvements in delivery and carryout segments. However, despite these positive results, the stock’s potential for significant upside appears limited, as major catalysts for 2025 seem to have already played out.
Fadem also notes that while Domino’s initiatives, such as the rollout of new marketing strategies and loyalty programs, show promise, the market’s focus is shifting towards challenges anticipated in 2026. Additionally, the company’s margins have been impacted by increased food and insurance costs, which may constrain profitability. Consequently, with the stock already performing well compared to its quick-service restaurant peers, Fadem remains cautious and maintains a Hold rating.
In another report released yesterday, Citi also reiterated a Hold rating on the stock with a $500.00 price target.