Domino's Pizza (DPZ) AI Stock Analysis

• Market Cap: $16.60B
• Dividend Yield: 1.29%
• Average Volume (3M): 704.18K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.95
• Revenue Growth: 4.28%
• EPS Growth: 13.76%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Restaurants
• EPS (TTM): 17.44
• Shares Outstanding: 34,241,478
• 10 Day Avg. Volume: 711,333
• 30 Day Avg. Volume: 704,183
• PEG Ratio: 2.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.13
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $507.00
• Price Target Upside: 4.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

Domino's Pizza demonstrates strong financial and technical performance, supported by strategic initiatives. While the company faces challenges like high leverage and operational pressures, its robust growth and positive momentum position it well for the future. The stock is fairly valued, and recent strategic moves could further enhance its market position.

Positive Factors

Market Expansion

Strength in India and China markets for Domino's Pizza is encouraging and could offer upside potential.

Product Launch and Partnerships

The launch of new products and partnerships, such as the stuffed crust pizza and DoorDash platform, could provide significant growth opportunities for Domino's.

Promotional Strategies

The 'Best Deal Ever' promotion has been successful, showcasing Domino's ability to attract consumers with compelling offers even in a tough economic climate.

Negative Factors

Core Business Slowdown

The core US business is slowing, impacting overall growth prospects for Domino's.

Domestic Market Challenges

Q1 US comparable sales were below expectations, indicating challenges in the domestic market.

Expense Impact on Earnings

The company's EBIT percentage declined, partly due to higher general and administrative costs and severance expenses.

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 three main streams: sales from company-owned stores, royalty and franchise fees from franchised stores, and supply chain operations. Company-owned store sales come from direct pizza and food sales to consumers. The majority of its stores are franchised, and Domino's earns money from these stores through royalty fees, which are a percentage of the franchisee's sales, and franchise fees, which are paid by franchisees to open and operate stores under the Domino's brand. Additionally, Domino's operates a supply chain segment, providing dough, toppings, and other food ingredients to its stores, which contributes significantly to its revenues. The company benefits from significant economies of scale and efficiencies in its supply chain operations, which enhance profitability. Strategic partnerships and technological innovations, such as its digital ordering platforms and delivery tracking systems, further bolster its revenue by enhancing customer convenience and engagement.

Domino's Pizza Financial Statement Overview

Summary

Domino's Pizza exhibits strong revenue and margin metrics, with solid cash flow generation. However, the high leverage and negative stockholders' equity pose potential risks to financial stability, necessitating caution despite robust operational performance.

Income Statement

Domino's Pizza has demonstrated consistent revenue growth, with a TTM revenue increase of 5.3% compared to the previous year. The gross profit margin is strong at 39.5%, and net profit margin is healthy at 12.8%. The EBIT and EBITDA margins are also robust at 18.6% and 20.1%, respectively, indicating efficient operations and cost management. Overall, the income statement reflects a solid growth trajectory and profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to negative stockholders' equity, indicating significant leverage, which poses a potential risk. However, the company maintains a good level of cash and short-term investments relative to its current liabilities, providing some liquidity buffer. Return on equity is not calculable due to negative equity. The equity ratio is negative due to liabilities exceeding assets, which is a concern for financial stability.

Cash Flow

Domino's Pizza has shown a strong operating cash flow of $680.5 million TTM, with a notable free cash flow growth rate of 11.9% compared to the previous period. The operating cash flow to net income ratio is 1.12, indicating efficient cash generation relative to reported earnings. The free cash flow to net income ratio is 0.94, suggesting a strong ability to convert earnings into cash. This reflects efficient capital management despite high financing outflows.

Breakdown
Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
4.71B	4.48B	4.54B	4.36B	4.12B
	Gross Profit
1.85B	1.73B	1.65B	1.69B	1.59B
	EBIT
879.00M	819.52M	767.92M	780.41M	725.64M
	EBITDA
1.01B	929.55M	851.34M	890.43M	790.68M
	Net Income Common Stockholders
584.17M	519.12M	452.26M	510.47M	491.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.13M	114.10M	60.36M	148.16M	168.82M
	Total Assets
1.74B	1.67B	1.60B	1.67B	1.57B
	Total Debt
5.20B	5.21B	5.25B	5.29B	4.36B
	Net Debt
5.01B	5.10B	5.19B	5.14B	4.19B
	Total Liabilities
5.70B	5.75B	5.79B	5.88B	4.87B
	Stockholders Equity
-3.96B	-4.07B	-4.19B	-4.21B	-3.30B
Cash Flow		Free Cash Flow
512.01M	485.47M	388.08M	560.03M	504.03M
	Operating Cash Flow
624.90M	590.86M	475.32M	654.21M	592.79M
	Investing Cash Flow
-31.23M	-106.92M	-53.68M	-142.72M	-128.93M
	Financing Cash Flow
-532.22M	-476.36M	-515.95M	-522.83M	-446.41M

Domino's Pizza Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 484.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DPZ, the sentiment is Positive. The current price of 484.61 is above the 20-day moving average (MA) of 470.64, above the 50-day MA of 464.83, and above the 200-day MA of 439.20, indicating a bullish trend. The MACD of 8.08 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 61.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DPZ.

Domino's Pizza Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DPZ	77 Outperform	$16.60B	27.78	-14.74%	1.29%	4.28%	13.76%
WING	70 Outperform	$6.62B	64.13	-16.09%	0.38%	30.98%	112.65%
YUM	68 Neutral	$40.38B	27.81	-19.43%	1.82%	10.09%	-11.50%
EAT	68 Neutral	$5.92B	18.36	314.08%	―	19.80%	117.96%
WEN	66 Neutral	$2.46B	13.28	90.40%	7.97%	2.98%	-2.58%
Sector *	61 Neutral	$6.65B	11.64	3.00%	3.98%	2.61%	-21.41%
PZZA	60 Neutral	$1.17B	14.06	-20.16%	5.16%	-3.57%	2.31%

Domino's Pizza Corporate Events

Domino’s Pizza Promotes Joseph H. Jordan to COO

On March 10, 2025, Domino’s Pizza announced the promotion of Joseph H. Jordan to Chief Operating Officer and President of Domino’s U.S., effective immediately. This move is part of a broader organizational shift aimed at enhancing agility and aligning teams to drive the company’s ‘Hungry for MORE’ strategy more effectively. Alongside Jordan, Weiking Ng and Ryan Mulally were also promoted to executive vice president roles, further strengthening Domino’s leadership team. These changes are expected to positively impact the company’s operations and strategic execution, reinforcing its position in the global market.

Domino’s Pizza Board Member Diana F. Cantor Retires

Diana F. Cantor, after nearly two decades on Domino’s Pizza’s Board of Directors, announced her retirement and will not seek reelection at the 2025 Annual Meeting of Shareholders in April. Her departure marks the end of a significant tenure, during which she contributed greatly to the company’s strategic direction.