Domino's Pizza (DPZ) AI Stock Analysis

• Market Cap: $15.67B
• Dividend Yield: 1.52%
• Average Volume (3M): 559.40K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.85
• Revenue Growth: 4.28%
• EPS Growth: 13.76%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): 4.33
• Shares Outstanding: 34,241,478
• 10 Day Avg. Volume: 618,840
• 30 Day Avg. Volume: 559,399
• PEG Ratio: 5.64
• Price to Book (P/B): -7.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.73
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 10.81
• Enterprise Value/Ebitda: 5.24
• 1Y Price Target: $503.77
• Price Target Upside: 10.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 63 Neutral
• Price Target: $487.00 ▲(7.28%Upside)

Domino's Pizza scores well on financial performance due to strong revenue and profitability metrics, but high leverage and negative equity are concerns. Technical indicators are neutral, while valuation suggests a premium pricing. Recent earnings call and corporate events add positive strategic developments, though challenges in the domestic market persist.

Positive Factors

Market Expansion

Carryout is seen as potentially the biggest opportunity, with significant market share gains possible for Domino's Pizza.

Product Innovation

Management expects strong market share gains driven by the launch of new products and partnerships, such as the stuffed crust pizza and DoorDash platform, which could provide significant growth opportunities.

Sales Growth

Expect to see more immediate share gains and contributions to top-line growth following DPZ’s DASH launch.

Negative Factors

International Sales

Beat in Int’l SSS at 3.8%, but reiterated 1%-2% guide, meaning decel possible.

Sales Performance

Negative US Comps miss expectations, though a stronger trend expected as management remained confident in the 3% guide.

Unit Growth

Unit growth miss, largely due to timing of DMP’s 200 closures, company still expects net unit additions similar to 2024.

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 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 shows strong revenue growth and profitability with healthy margins. However, the balance sheet indicates high leverage with negative stockholders' equity, which is concerning for long-term stability. Cash flow generation remains robust, reflecting 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	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.73B	4.71B	4.48B	4.54B	4.36B	4.12B
Gross Profit	1.87B	1.85B	1.73B	1.65B	1.69B	1.59B
EBITDA	950.32M	1.01B	929.55M	851.34M	890.43M	790.68M
Net Income	608.00M	584.17M	519.12M	452.26M	510.47M	491.30M
Balance Sheet
Total Assets	1.88B	1.74B	1.67B	1.60B	1.67B	1.57B
Cash, Cash Equivalents and Short-Term Investments	501.73M	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	-2.22B	-3.96B	-4.07B	-4.19B	-4.21B	-3.30B
Cash Flow
Free Cash Flow	573.06M	512.01M	485.47M	388.08M	560.03M	504.03M
Operating Cash Flow	680.51M	624.90M	590.86M	475.32M	654.21M	592.79M
Investing Cash Flow	-25.71M	-31.23M	-106.92M	-53.68M	-142.72M	-128.93M
Financing Cash Flow	-549.32M	-532.22M	-476.36M	-515.95M	-522.83M	-446.41M

Domino's Pizza Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 453.94
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 453.94 is below the 20-day moving average (MA) of 454.82, below the 50-day MA of 470.59, and above the 200-day MA of 447.56, indicating a neutral trend. The MACD of -4.46 indicates Negative momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 57.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DPZ.

Domino's Pizza Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EAT	73 Outperform	$8.18B	25.07	314.08%	―	19.80%	117.96%
YUM	68 Neutral	$41.80B	29.98	-19.43%	1.89%	10.09%	-11.50%
WING	68 Neutral	$9.36B	56.27	-16.09%	0.32%	30.98%	112.65%
WEN	67 Neutral	$2.28B	12.68	90.40%	4.71%	2.18%	-5.15%
PZZA	64 Neutral	$1.62B	20.96	-20.16%	3.72%	-2.77%	4.01%
DPZ	63 Neutral	$15.67B	26.23	-14.74%	1.52%	4.28%	13.76%
Sector *	61 Neutral	€9.32B	47.30	-9.54%	6.64%	-4.68%	-149.05%

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.