Domino's Pizza (DPZ) AI Stock Analysis

• Market Cap: $13.93B
• Dividend Yield: 1.63%
• Average Volume (3M): 831.97K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.69
• Revenue Growth: 3.92%
• EPS Growth: 4.98%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 5.35
• Shares Outstanding: 33,628,900
• 10 Day Avg. Volume: 996,359
• 30 Day Avg. Volume: 831,972
• PEG Ratio: 4.60
• Price to Book (P/B): -3.67
• Price to Sales (P/S): 2.90
• P/FCF Ratio: 21.33
• Enterprise Value/Market Cap: -6.50
• Enterprise Value/Revenue: -18.33
• Enterprise Value/Gross Profit: -45.87
• Enterprise Value/Ebitda: -85.42
• 1Y Price Target: $468.53
• Price Target Upside: 15.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 19.83
• Revenue Forecast (FY): $5.28B

• Rating: 67 Neutral
• Price Target: $449.00 ▲(11.16% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is anchored by solid profitability and cash generation but is held back by a high-risk balance sheet with persistent negative equity and meaningful debt. The latest earnings call improves the outlook with clear 2026 growth/profit guidance and strong store expansion plans, while technicals remain mixed and valuation is moderate rather than compelling.

Positive Factors

Cash generation

Improving operating and free cash flow shows durable cash conversion from operations. This sustained cash generation supports ongoing franchise expansion, dividend increases, buybacks and capex needs, providing flexibility to invest in technology and withstand cyclical pressures over the next several quarters.

Profitability and revenue trend

Steady multi-year revenue growth with stable gross and net margins signals resilient unit economics. Consistent margins around industry-leading levels indicate durable profit power from scale, menu mix and operational control that should support earnings stability through typical industry cycles.

Franchise model & store growth

A high-growth, asset-light franchising model with aggressive net store targets drives scalable revenue and low company capex. Sustained store expansion, combined with rising franchisee store-level profitability, supports long-term system sales growth and market-share gains without proportionate corporate investment.

Negative Factors

Weak balance sheet

Persistent negative equity and material debt create an aggressive capital structure that raises solvency risk. Even with strong cash flows, negative equity limits flexibility, increases refinancing and covenant risk, and could constrain strategic options or force higher cost funding over the medium term.

Corporate margin pressure (insurance)

Elevated insurance costs hitting corporate stores can depress company-level margins even if franchisee economics hold. If insurance or other fixed-cost shocks persist, corporate profitability and cash available for corporate initiatives or shareholder returns could be meaningfully constrained over multiple quarters.

International owner underperformance (DPE)

A persistently underperforming international franchisee/operator reduces consolidated international growth and complicates execution of multi-year expansion. Fixing DPE performance is structural: prolonged underperformance could slow international comps and dilute global same-store sales momentum.

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 generates revenue primarily through the sale of pizza and other food items at its franchised and company-owned stores. The company's revenue model is multifaceted, with key revenue streams coming from retail sales in its restaurants and franchise fees from its extensive network of franchisees. Franchisees pay an initial franchise fee and ongoing royalties based on their sales, which contribute significantly to the company's earnings. Additionally, Domino's benefits from partnerships with third-party delivery services and technology platforms, enhancing its delivery capabilities and expanding its customer reach. The company's focus on digital ordering and delivery has also driven growth, allowing it to capture more market share in the competitive food service industry.

Domino's Pizza Financial Statement Overview

Summary

Income statement and cash flow are solid (steady multi-year revenue growth overall, resilient ~10–12% net margins, and improving operating/free cash flow). However, the balance sheet is a major risk with persistently negative equity and material debt, creating an aggressive capital structure that meaningfully lowers the overall financial profile.

Income Statement

Revenue has grown steadily across recent years (from $4.12B in 2021 to $4.94B in 2025), with profitability holding up well for the industry: gross margin is stable around ~39–40% and net margin is consistently ~10–12%. Net income also rose over the period ($491M in 2021 to $602M in 2025). The main weakness is that growth is not smooth (including a revenue dip in 2023), and operating profitability metrics show some volatility year to year.

Balance Sheet

The balance sheet is the clear weak spot. Stockholders’ equity is negative in every period shown (roughly -$3.3B to -$4.2B), which elevates financial risk and makes leverage indicators less meaningful (debt-to-equity is negative). Debt levels are material (about $4.4B–$5.3B in most years shown), and the negative equity also drives a negative return on equity, signaling an aggressive capital structure despite solid earnings power.

Cash Flow

Cash generation is healthy and generally improving: operating cash flow increased from $593M (2021) to $792M (2025), and free cash flow rose from $504M to $672M over the same period. Free cash flow tracks net income reasonably well (free cash flow is about ~82–86% of net income), supporting earnings quality. Weaknesses include some volatility in free cash flow growth (including a notable decline in 2023-01-01 period) and uneven coverage versus reported income in certain years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.94B	4.71B	4.48B	4.54B	4.36B
Gross Profit	1.97B	1.85B	1.73B	1.65B	1.69B
EBITDA	1.06B	1.01B	929.55M	851.34M	890.43M
Net Income	601.70M	584.17M	519.12M	452.26M	510.47M
Balance Sheet
Total Assets	1.72T	1.74B	1.67B	1.60B	1.67B
Cash, Cash Equivalents and Short-Term Investments	341.79B	186.13M	114.10M	60.36M	148.16M
Total Debt	237.60B	5.20B	5.21B	5.25B	5.29B
Total Liabilities	5.08T	5.70B	5.75B	5.79B	5.88B
Stockholders Equity	-3.90B	-3.96B	-4.07B	-4.19B	-4.21B
Cash Flow
Free Cash Flow	671.50M	512.01M	485.47M	388.08M	560.03M
Operating Cash Flow	792.06M	624.90M	590.86M	475.32M	654.21M
Investing Cash Flow	-70.19M	-31.23M	-106.92M	-53.68M	-142.72M
Financing Cash Flow	-752.09M	-532.22M	-476.36M	-515.95M	-522.83M

Domino's Pizza Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 403.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 403.94 is above the 20-day moving average (MA) of 394.55, below the 50-day MA of 407.88, and below the 200-day MA of 432.41, indicating a neutral trend. The MACD of -2.63 indicates Negative momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.26 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
YUM	74 Outperform	$45.87B	29.91	―	1.84%	11.60%	-4.33%
ARCO	71 Outperform	$1.83B	7.46	39.04%	3.27%	1.21%	67.88%
DPZ	67 Neutral	$13.93B	23.57	―	1.63%	3.92%	4.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
QSR	61 Neutral	$31.37B	29.28	26.75%	3.60%	16.82%	-29.91%
PZZA	57 Neutral	$1.13B	30.46	―	4.72%	-0.64%	-60.71%
WEN	57 Neutral	$1.47B	9.09	87.63%	8.15%	-0.21%	0.16%

Domino's Pizza Corporate Events

Domino’s Pizza Announces Retirement of Long-Serving Board Director

On February 18, 2026, Domino’s Pizza announced that long-serving director James A. Goldman will retire from its Board of Directors and will not stand for reelection at the company’s 2026 Annual Meeting of Shareholders in April. After more than 15 years on the board, Goldman will continue to serve through the remainder of his current term, and the board publicly acknowledged his service and contributions, marking a notable change in the company’s long-term governance lineup.

The most recent analyst rating on (DPZ) stock is a Buy with a $500.00 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the DPZ Stock Forecast page.

Domino’s Pizza Board Member Resigns in November 2025

On November 19, 2025, C. Andrew Ballard resigned from the Board of Directors of Domino’s Pizza, Inc. His resignation was not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (DPZ) stock is a Hold with a $445.00 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the DPZ Stock Forecast page.