Domino's Pizza (DPZ) AI Stock Analysis

• Market Cap: $14.81B
• Dividend Yield: 1.61%
• Average Volume (3M): 511.54K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.71
• Revenue Growth: 3.92%
• EPS Growth: 4.98%
• Country: US
• Employees: 6,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 4.08
• Shares Outstanding: 33,786,217
• 10 Day Avg. Volume: 600,132
• 30 Day Avg. Volume: 511,539
• 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: 1.38
• Enterprise Value/Revenue: 4.22
• Enterprise Value/Gross Profit: 10.59
• Enterprise Value/Ebitda: 19.56
• 1Y Price Target: $498.62
• Price Target Upside: 15.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 17.62
• Revenue Forecast (FY): $4.93B

• Rating: 68 Neutral
• Price Target: $463.00 ▲(7.33% Upside)

Domino's Pizza's strong earnings call performance and technical indicators support a positive outlook. However, financial risks from high leverage and potential overvaluation temper the overall score.

Positive Factors

Strong US Business Growth

Domino's strong US growth reflects effective strategic initiatives and promotions, enhancing its market position and supporting long-term revenue expansion.

Promising Ecommerce Platform Upgrades

Enhanced digital platforms can drive higher order volumes and customer satisfaction, strengthening Domino's competitive edge in the digital ordering space.

Cash Flow Management

Robust cash flow management provides financial flexibility for strategic investments, debt servicing, and shareholder returns, supporting long-term stability.

Negative Factors

High Debt Levels

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

Challenging Macro Environment

Economic headwinds may impact consumer spending and sales growth, posing a risk to Domino's revenue and profitability in the near to medium term.

Higher Refinancing Costs

Increased refinancing costs could pressure margins and reduce financial flexibility, affecting Domino's ability to invest in growth and innovation.

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

Domino's Pizza shows strong operational performance with consistent revenue growth and profitability. However, the high leverage and negative equity pose potential risks to financial stability. The company's robust cash flow generation provides a buffer against these risks, supporting its ongoing operations and strategic initiatives.

Income Statement

Domino's Pizza shows a solid performance in its income statement with consistent revenue growth and strong profit margins. The TTM data indicates a slight increase in revenue growth rate and stable gross and net profit margins, reflecting efficient cost management and profitability. However, the growth rate has slowed compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, which is a significant risk factor. Despite this, the company maintains a stable asset base. The negative return on equity indicates challenges in generating returns for shareholders, which could impact long-term financial stability.

Cash Flow

Cash flow analysis shows a positive trajectory with strong free cash flow growth and a healthy free cash flow to net income ratio. The operating cash flow to net income ratio is also robust, indicating efficient cash generation relative to net income. These metrics highlight Domino's ability to generate cash, supporting its operational and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.85B	4.71B	4.48B	4.54B	4.36B	4.12B
Gross Profit	1.93B	1.85B	1.73B	1.65B	1.69B	1.59B
EBITDA	1.04B	1.01B	929.55M	851.34M	890.43M	790.68M
Net Income	589.50M	584.17M	519.12M	452.26M	510.47M	491.30M
Balance Sheet
Total Assets	1.66B	1.74B	1.67B	1.60B	1.67B	1.57B
Cash, Cash Equivalents and Short-Term Investments	342.23M	186.13M	114.10M	60.36M	148.16M	168.82M
Total Debt	5.10B	5.20B	5.21B	5.25B	5.29B	4.36B
Total Liabilities	5.62B	5.70B	5.75B	5.79B	5.88B	4.87B
Stockholders Equity	-3.96B	-3.96B	-4.07B	-4.19B	-4.21B	-3.30B
Cash Flow
Free Cash Flow	631.52M	512.01M	485.47M	388.08M	560.03M	504.03M
Operating Cash Flow	730.27M	624.90M	590.86M	475.32M	654.21M	592.79M
Investing Cash Flow	34.60M	-31.23M	-106.92M	-53.68M	-142.72M	-128.93M
Financing Cash Flow	-777.47M	-532.22M	-476.36M	-515.95M	-522.83M	-446.41M

Domino's Pizza Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 431.37
• 50DMA: Positive
• 100DMA: Positive
• 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 431.37 is above the 20-day moving average (MA) of 420.90, above the 50-day MA of 413.38, and below the 200-day MA of 444.52, indicating a neutral trend. The MACD of 6.24 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 75.71 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
QSR	75 Outperform	$31.93B	25.02	28.08%	3.49%	16.82%	-29.91%
ARCO	71 Outperform	$1.53B	6.23	39.04%	3.31%	1.21%	67.88%
DPZ	68 Neutral	$14.81B	25.62	―	1.61%	3.92%	4.98%
WEN	65 Neutral	$1.62B	9.00	100.85%	7.94%	-0.21%	0.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YUM	59 Neutral	$42.52B	29.82	―	1.84%	11.60%	-4.33%
PZZA	57 Neutral	$1.34B	36.13	―	4.51%	-0.64%	-60.71%

Domino's Pizza Corporate Events

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.

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.