Domino's Pizza (DPZ) AI Stock Analysis

• Market Cap: $15.96B
• Dividend Yield: 1.67%
• Average Volume (3M): 594.51K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.79
• Revenue Growth: 3.65%
• EPS Growth: 5.71%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Restaurants
• EPS (TTM): 3.81
• Shares Outstanding: 34,241,478
• 10 Day Avg. Volume: 642,514
• 30 Day Avg. Volume: 594,509
• PEG Ratio: -21.34
• Price to Book (P/B): -7.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.49
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 9.21
• Enterprise Value/Ebitda: 4.39
• 1Y Price Target: $507.52
• Price Target Upside: 5.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 74 Outperform
• Price Target: $518.00 ▲(7.70%Upside)

Domino's Pizza's strong financial performance, particularly in revenue growth and profitability, is a major strength, supported by positive sentiment from the latest earnings call. However, high leverage and valuation concerns present risks. The technical outlook is stable, with potential for modest gains.

Positive Factors

Market Share Gains

Domino's continues to capture market share with a deliberate strategy, expanding its presence while competitors have closed locations.

Partnerships and Initiatives

The rollout of the DoorDash partnership, continued benefits of Parmesan stuffed crust pizza, and loyalty program revamp are expected to accelerate performance above consensus.

Value Strategy

The return of the $9.99 Best Deal Ever could support a value strategy that competitors may struggle to sustain.

Negative Factors

Growth Rate Concerns

There is an ongoing debate about Domino's Pizza Inc.'s growth rate within a slow-growing segment, which remains a key topic.

Volatile Macro Backdrop

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.

Domino's Pizza Business Overview & Revenue Model

Company Description

Domino's Pizza, Inc. (DPZ) is a leading global pizza delivery and carryout chain with a presence in numerous countries. Founded in 1960 and headquartered in Ann Arbor, Michigan, the company operates through a network of company-owned and franchised stores. Domino's offers a diverse menu that includes a variety of pizzas, pastas, sandwiches, chicken, and side items, along with beverages and desserts. Known for its innovative technology and efficient delivery service, Domino's has established itself as a key player in the quick-service restaurant sector.

How the Company Makes Money

Domino's Pizza generates revenue primarily through the sale of food and beverages at its company-owned stores and the collection of royalties and fees from franchised locations. Franchisees pay an initial franchise fee, ongoing royalties based on a percentage of their sales, and contribute to a national advertising fund. In addition to traditional sales channels, Domino's leverages its digital platforms, including a robust online ordering system and mobile app, to drive sales and enhance customer convenience. Significant partnerships with beverage and ingredient suppliers also contribute to cost efficiencies and revenue growth. The company's focus on expanding its global footprint through the opening of new stores, both company-owned and franchised, further drives its revenue generation.

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	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
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: 480.97
• 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 480.97 is above the 20-day moving average (MA) of 461.02, above the 50-day MA of 465.98, and above the 200-day MA of 450.81, indicating a bullish trend. The MACD of 2.66 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 48.81 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	74 Outperform	$15.96B	27.05	-14.74%	1.67%	3.65%	5.71%
EAT	73 Outperform	$7.17B	22.26	314.08%	―	19.80%	117.96%
WEN	68 Neutral	$2.08B	11.57	90.40%	8.21%	2.18%	-5.15%
YUM	67 Neutral	$41.29B	29.61	-19.43%	1.86%	10.09%	-11.50%
WING	66 Neutral	$8.95B	53.82	-16.09%	0.34%	30.98%	112.65%
Sector *	63 Neutral	$17.14B	11.11	-7.24%	3.14%	1.68%	-25.43%
PZZA	55 Neutral	$1.48B	19.21	-20.16%	4.06%	-2.77%	4.01%

Domino's Pizza Corporate Events

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.

The most recent analyst rating on (DPZ) stock is a Hold with a $455.00 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the DPZ Stock Forecast page.