Domino's Pizza (DPZ) AI Stock Analysis

• Market Cap: $14.44B
• Dividend Yield: 1.59%
• Average Volume (3M): 626.52K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.74
• Revenue Growth: 3.65%
• EPS Growth: 5.71%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 3.81
• Shares Outstanding: 33,948,920
• 10 Day Avg. Volume: 743,486
• 30 Day Avg. Volume: 626,517
• PEG Ratio: 1.83
• Price to Book (P/B): -3.69
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 28.54
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 4.22
• Enterprise Value/Gross Profit: 10.66
• Enterprise Value/Ebitda: 19.22
• 1Y Price Target: $515.76
• Price Target Upside: 22.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 71 Outperform
• Price Target: $497.00 ▲(17.56% Upside)

Domino's Pizza's overall stock score reflects strong earnings call insights and robust financial performance, particularly in cash flow generation. However, high leverage and valuation concerns temper the outlook. Technical indicators suggest caution, but strategic initiatives and market share gains provide a positive long-term perspective.

Positive Factors

Cash Flow Generation

Domino's strong cash flow generation supports operational and financial flexibility, enabling strategic investments and debt management.

Market Share Gains

Gaining market share in key segments strengthens Domino's competitive position, enhancing long-term revenue potential and brand loyalty.

Successful Product Launches

Successful product innovations drive customer engagement and sales growth, reinforcing Domino's market leadership and adaptability.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting Domino's ability to invest in growth initiatives and manage economic downturns.

Challenging Macro Environment

A challenging macroeconomic environment can hinder consumer spending and growth, affecting Domino's revenue and profitability.

Flat QSR Pizza Category

Stagnant growth in the QSR pizza category limits market expansion opportunities, potentially impacting Domino's long-term revenue growth.

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 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 shows strong revenue growth and profitability with solid margins. However, high leverage and negative stockholders' equity present risks to financial stability. Cash flow generation is robust, indicating effective 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.78B	4.71B	4.48B	4.54B	4.36B	4.12B
Gross Profit	1.89B	1.85B	1.73B	1.65B	1.69B	1.59B
EBITDA	1.05B	1.01B	929.55M	851.34M	890.43M	790.68M
Net Income	597.11M	584.17M	519.12M	452.26M	510.47M	491.30M
Balance Sheet
Total Assets	1.81B	1.74B	1.67B	1.60B	1.67B	1.57B
Cash, Cash Equivalents and Short-Term Investments	272.86M	186.13M	114.10M	60.36M	148.16M	168.82M
Total Debt	5.21B	5.20B	5.21B	5.25B	5.29B	4.36B
Total Liabilities	5.79B	5.70B	5.75B	5.79B	5.88B	4.87B
Stockholders Equity	-3.97B	-3.96B	-4.07B	-4.19B	-4.21B	-3.30B
Cash Flow
Free Cash Flow	613.17M	512.01M	485.47M	388.08M	560.03M	504.03M
Operating Cash Flow	717.61M	624.90M	590.86M	475.32M	654.21M	592.79M
Investing Cash Flow	28.53M	-31.23M	-106.92M	-53.68M	-142.72M	-128.93M
Financing Cash Flow	-722.88M	-532.22M	-476.36M	-515.95M	-522.83M	-446.41M

Domino's Pizza Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 422.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DPZ, the sentiment is Negative. The current price of 422.75 is below the 20-day moving average (MA) of 445.94, below the 50-day MA of 452.18, and below the 200-day MA of 454.02, indicating a bearish trend. The MACD of -8.10 indicates Positive momentum. The RSI at 31.62 is Neutral, neither overbought nor oversold. The STOCH value of 9.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DPZ.

Domino's Pizza Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DPZ	71 Outperform	$14.44B	24.61	-14.74%	1.59%	3.65%	5.71%
EAT	68 Neutral	6.09B	16.01	103.29%	―	21.95%	146.44%
YUM	66 Neutral	41.48B	29.52	-18.65%	1.86%	11.30%	-7.82%
WEN	63 Neutral	1.77B	9.70	170.14%	8.52%	1.31%	-1.46%
WING	61 Neutral	7.07B	42.29	-25.00%	0.45%	22.74%	87.07%
PZZA	60 Neutral	1.52B	20.39	-17.38%	3.94%	-1.46%	8.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Domino's Pizza Corporate Events

Domino’s Pizza Completes $1 Billion Refinancing Transaction

On September 5, 2025, Domino’s Pizza completed a significant refinancing transaction involving the issuance of $1 billion in senior secured notes, aimed at restructuring its existing debt. This move is expected to optimize the company’s financial structure by replacing older notes with new ones, potentially impacting its leverage and financial flexibility, and is part of a broader strategy to manage its revenue-generating assets more effectively.

The most recent analyst rating on (DPZ) stock is a Buy with a $511.00 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the DPZ Stock Forecast page.

Domino’s Pizza 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.

The most recent analyst rating on (DPZ) stock is a Hold with a $450.00 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the DPZ Stock Forecast page.