Domino's Pizza (DPZ) AI Stock Analysis

• Market Cap: $15.56B
• Dividend Yield: 1.39%
• Average Volume (3M): 731.15K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.76
• Revenue Growth: 3.65%
• EPS Growth: 5.71%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Restaurants
• EPS (TTM): 3.81
• Shares Outstanding: 33,948,920
• 10 Day Avg. Volume: 709,448
• 30 Day Avg. Volume: 731,146
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 4.26
• Enterprise Value/Gross Profit: 10.79
• Enterprise Value/Ebitda: 19.53
• 1Y Price Target: $506.00
• Price Target Upside: 8.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 73 Outperform
• Price Target: $511.00 ▲(9.35% Upside)

Domino's Pizza's overall score reflects strong earnings call sentiment and strategic initiatives, offset by financial leverage concerns and moderate technical indicators. The company's growth prospects are promising, but high debt levels warrant caution.

Positive Factors

Market Share

Domino's continues to take market share in a value-driven selling environment due to loyalty, new products, and the DoorDash launch.

Partnerships

The full national rollout on the DoorDash platform is expected to unlock meaningful sales growth and contribute to DPZ's goal of generating over $1B in incremental revenue.

Product Innovation

Product innovation has been a success for DPZ, with the Parmesan Stuffed Crust Pizza meeting high expectations and contributing to sales growth.

Negative Factors

Valuation Concerns

Achieving a 15%+ return would require the multiple to be 27x, which would be hard to sustain in a volatile macro backdrop unless Domino’s surprises with an early entry into a new category or acceleration in net openings in international markets.

Volatile Macro Environment

Achieving a 15%+ return would require the multiple to be above 1 standard deviation from the 5-year trading range, which would be hard to sustain in a volatile macro backdrop.

Domino's Pizza Business Overview & Revenue Model

Company Description

Domino's Pizza, Inc. (DPZ) is a leading global pizza delivery and carryout chain headquartered in Ann Arbor, Michigan. Established in 1960, the company operates in the quick-service restaurant sector, specializing in pizza and related food offerings. Its core products include a wide variety of pizzas, pasta, breadsticks, and desserts, with an emphasis on fast delivery and customer convenience. Domino's has expanded its international presence, operating thousands of locations across various countries, making it one of the largest pizza chains worldwide.

How the Company Makes Money

Domino's Pizza generates revenue primarily through the sale of pizzas and other food products. The company's revenue model is multifaceted, consisting of both company-owned and franchised stores. Franchise fees, which include initial franchise agreements and ongoing royalties based on sales, are significant revenue streams. Additionally, Domino's earns income through digital sales channels, including mobile app and online orders, which have become increasingly popular. The company has established partnerships with third-party delivery services and has also invested in its own delivery fleet, enhancing its delivery capabilities. Promotional deals, loyalty programs, and strategic marketing campaigns further contribute to driving sales and customer retention, making these factors crucial to its earnings.

Domino's Pizza Financial Statement Overview

Summary

Domino's Pizza demonstrates strong revenue growth and profitability with solid margin metrics. However, the balance sheet shows high leverage and negative equity, which raises concerns about long-term financial stability. Cash flow generation is robust, indicating efficient operational management.

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	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	1.01B	929.55M	851.34M	890.43M	790.68M
Net Income	584.17M	519.12M	452.26M	510.47M	491.30M
Balance Sheet
Total Assets	1.74B	1.67B	1.60B	1.67B	1.57B
Cash, Cash Equivalents and Short-Term Investments	186.13M	114.10M	60.36M	148.16M	168.82M
Total Debt	5.20B	5.21B	5.25B	5.29B	4.36B
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: 467.30
• 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 467.3 is above the 20-day moving average (MA) of 449.15, above the 50-day MA of 458.36, and above the 200-day MA of 456.06, indicating a bullish trend. The MACD of -0.50 indicates Negative momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 69.86 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	73 Outperform	$15.56B	27.13	-14.74%	1.39%	3.65%	5.71%
WING	69 Neutral	$9.16B	53.24	-16.09%	0.35%	22.74%	87.07%
YUM	67 Neutral	$40.79B	29.03	-19.43%	1.93%	11.30%	-7.82%
EAT	66 Neutral	$6.94B	18.77	186.74%	―	21.95%	146.44%
WEN	63 Neutral	$2.02B	10.72	99.35%	7.59%	1.31%	-1.46%
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
PZZA	60 Neutral	$1.60B	21.47	-20.16%	3.86%	-1.46%	8.10%

Domino's Pizza Corporate Events

Domino’s Pizza Announces $1 Billion Notes Issuance

On August 12, 2025, Domino’s Pizza announced a purchase agreement for the issuance and sale of $1 billion in senior secured notes, divided into two tranches with different maturity terms. This financial move, involving several of its subsidiaries and major financial institutions as initial purchasers, is expected to close on September 5, 2025, and is designed to strengthen the company’s financial position and support its strategic initiatives.

Domino’s Pizza Announces $1 Billion Refinancing Plan

On August 6, 2025, Domino’s Pizza announced a refinancing transaction involving its subsidiaries issuing $1 billion in new securitized notes to retire existing debt and entering a new $320 million variable funding note facility. This move aims to optimize the company’s financial structure, although its success is contingent on market conditions and there is no assurance of completion.

Domino’s Pizza Appoints Stephen Kramer to Board

On June 30, 2025, Domino’s Pizza appointed Stephen H. Kramer to its Board of Directors, effective immediately. Kramer, who is currently the President and CEO of Bright Horizons Family Solutions Inc., brings extensive experience to the board. His appointment is expected to contribute valuable insights towards achieving Domino’s strategic priorities and long-term goals. This move aligns with Domino’s focus on culture, innovation, and community, reinforcing its position as a leading global pizza brand.