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Domino's Pizza (GB:DOM)
LSE:DOM

Domino's Pizza (DOM) AI Stock Analysis

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GB

Domino's Pizza

(LSE:DOM)

Rating:66Neutral
Price Target:
Domino's Pizza's stock score is supported by robust financial performance and a positive outlook from recent corporate events. However, high financial leverage and negative equity, coupled with weak technical indicators, pose risks. The attractive valuation and dividend yield provide a buffer against these concerns.
Positive Factors
Business Momentum
Domino's Pizza shows a slight increase in system sales growth and delivery orders, indicating positive business momentum.
Growth Confidence
Domino's new five-year framework agreement removes uncertainty and provides greater confidence in future growth.
Negative Factors
Cost Pressures
Franchisee profitability will likely remain under pressure given wage cost inflation from the recent UK Budget.
Increased Costs
New guidance implies an estimated headwind to EBITDA with increased costs associated with marketing, digital investment, and wage costs.

Domino's Pizza (DOM) vs. iShares MSCI United Kingdom ETF (EWC)

Domino's Pizza Business Overview & Revenue Model

Company DescriptionDomino's Pizza Group plc owns, operates, and franchises Domino's Pizza stores. It operates 1,172 stores in the United Kingdom and 55 stores in the Republic of Ireland. The company was formerly known as Domino's Pizza UK & IRL plc and changed its name to Domino's Pizza Group plc in May 2012. The company was founded in 1960 and is based in Milton Keynes, the United Kingdom.
How the Company Makes MoneyDomino's Pizza generates revenue primarily through the sale of pizzas and other food items in its company-owned stores and franchised locations. The company's revenue streams include sales from company-owned stores, royalties and fees from franchised stores, and supply chain operations. Domino's earns a significant portion of its income from franchise royalties and fees, which are calculated as a percentage of sales from franchised stores. Additionally, Domino's operates a supply chain division that provides dough, ingredients, and supplies to its franchisees, creating another key revenue stream. The company benefits from its extensive global reach and strong brand recognition, which are bolstered by strategic marketing partnerships and continuous investment in technology that enhances customer experience and operational efficiency.

Domino's Pizza Financial Statement Overview

Summary
Domino's Pizza shows strong revenue growth and cash flow generation, but high financial leverage and negative equity pose risks. Effective cost management is evident, but operational challenges may exist.
Income Statement
70
Positive
Domino's Pizza has shown consistent revenue growth over the years, with a notable increase from 2020 to 2023. However, the latest figures indicate a slight revenue decline. Gross profit margins have remained strong, indicating effective cost management. The net profit margin experienced fluctuations but stayed relatively healthy. EBIT margins are missing for the latest period, which could suggest some operational challenges.
Balance Sheet
55
Neutral
The company faces significant financial leverage, as indicated by negative stockholders' equity and a high debt-to-equity ratio. This presents a potential risk, reflecting reliance on debt financing. The equity ratio is negative, which is concerning for financial stability. However, the company has managed to maintain its asset base over the years.
Cash Flow
65
Positive
Domino's Pizza demonstrates strong free cash flow generation, which is crucial for sustaining operations and supporting debt obligations. However, free cash flow showed a decline in 2024. The operating cash flow to net income ratio is healthy, indicating effective cash conversion from profits. The company must continue monitoring its cash flows to ensure long-term sustainability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
664.50M679.80M600.30M560.80M505.10M
Gross Profit
318.90M316.20M273.50M268.60M236.50M
EBIT
117.90M111.90M122.90M130.70M121.90M
EBITDA
171.30M190.40M141.60M148.10M141.90M
Net Income Common Stockholders
90.20M115.00M81.60M78.30M82.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
52.20M52.10M30.40M44.70M65.40M
Total Assets
602.90M512.50M520.70M522.00M592.20M
Total Debt
547.40M515.20M507.10M465.10M470.10M
Net Debt
495.20M463.10M476.70M422.30M406.70M
Total Liabilities
685.10M646.50M633.50M580.60M601.00M
Stockholders Equity
-82.20M-134.00M-112.80M-58.60M-8.80M
Cash FlowFree Cash Flow
85.00M92.70M65.40M99.60M92.80M
Operating Cash Flow
103.50M113.50M85.10M113.90M112.20M
Investing Cash Flow
-200.00K94.70M29.50M32.80M-17.80M
Financing Cash Flow
-103.00M-186.50M-127.40M-174.70M-38.60M

Domino's Pizza Technical Analysis

Technical Analysis Sentiment
Negative
Last Price253.80
Price Trends
50DMA
266.69
Negative
100DMA
275.60
Negative
200DMA
288.90
Negative
Market Momentum
MACD
-3.28
Positive
RSI
35.10
Neutral
STOCH
52.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DOM, the sentiment is Negative. The current price of 253.8 is below the 20-day moving average (MA) of 261.82, below the 50-day MA of 266.69, and below the 200-day MA of 288.90, indicating a bearish trend. The MACD of -3.28 indicates Positive momentum. The RSI at 35.10 is Neutral, neither overbought nor oversold. The STOCH value of 52.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DOM.

Domino's Pizza Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBDOM
66
Neutral
£1.01B11.08
5.82%-2.25%-18.24%
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
GBDPP
£87.16M-9.29%
74
Outperform
£1.33B47.0812.09%3.47%14.07%236.27%
£988.65K0.05
GBJDW
73
Outperform
£784.76M13.7016.38%0.56%3.70%57.10%
GBMEX
£15.23M-277.22%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DOM
Domino's Pizza
253.80
-49.89
-16.43%
GB:DPP
DP Poland plc
9.50
-1.50
-13.64%
GB:SSPG
SSP Group plc
161.50
-0.23
-0.14%
GB:TAST
Tasty plc
0.48
-1.27
-72.57%
GB:JDW
J D Wetherspoon
715.00
-12.84
-1.76%
GB:MEX
Tortilla Mexican Grill Ltd.
39.50
-12.50
-24.04%

Domino's Pizza Corporate Events

Regulatory Filings and Compliance
Domino’s Pizza Group Updates Shareholders on Voting Rights and Capital
Neutral
Jun 2, 2025

Domino’s Pizza Group plc has announced that as of 31 May 2025, it has 394,712,748 issued ordinary shares admitted to trading, each carrying one vote at general meetings. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:DOM) stock is a Sell with a £2.50 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the GB:DOM Stock Forecast page.

Regulatory Filings and Compliance
Liontrust Adjusts Holdings in Domino’s Pizza Group
Neutral
Jun 2, 2025

Liontrust Investment Partners LLP has adjusted its holdings in Domino’s Pizza Group PLC, crossing a significant threshold in voting rights. This change reflects a decrease in their total voting rights from 5.9617% to 5.4812%, potentially impacting the company’s shareholder dynamics and market perception.

The most recent analyst rating on (GB:DOM) stock is a Sell with a £2.50 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the GB:DOM Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Domino’s Pizza Group Announces Board Changes
Neutral
May 27, 2025

Domino’s Pizza Group Plc has announced the appointment of Robyn Perriss as an independent non-executive Director, effective from July 1, 2025. Robyn, who has extensive experience in digitally-focused companies, will join several key committees within the Board. Concurrently, Elias Diaz Sese will step down from his role as a non-executive Director to focus on other business interests. These changes are expected to enhance the Board’s expertise in digital and consumer-centric strategies, aligning with Domino’s strategic goals.

The most recent analyst rating on (GB:DOM) stock is a Sell with a £2.50 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the GB:DOM Stock Forecast page.

Business Operations and Strategy
Domino’s Pizza Group Sees Shift in Major Shareholdings
Neutral
May 20, 2025

Domino’s Pizza Group PLC has announced a change in its major holdings, with The Capital Group Companies, Inc. acquiring a significant portion of the company’s voting rights. This acquisition increases The Capital Group’s influence within Domino’s, potentially impacting the company’s strategic decisions and market positioning. The change reflects a shift in the company’s shareholder structure, which could have implications for its future operations and stakeholder relations.

The most recent analyst rating on (GB:DOM) stock is a Sell with a £2.50 price target. To see the full list of analyst forecasts on Domino’s Pizza stock, see the GB:DOM Stock Forecast page.

Regulatory Filings and Compliance
Domino’s Pizza Group Announces Share Capital Update
Neutral
May 1, 2025

Domino’s Pizza Group plc announced that as of April 30, 2025, the company had 394,712,748 issued ordinary shares, each carrying one vote at general meetings. This information is crucial for shareholders to determine their interests in compliance with the FCA’s Disclosure Guidance and Transparency Rules.

Executive/Board ChangesShareholder MeetingsStock BuybackDividends
Domino’s Pizza Group Secures Shareholder Approval for Key Resolutions at 2025 AGM
Positive
Apr 24, 2025

Domino’s Pizza Group plc announced the approval of all resolutions at its 2025 Annual General Meeting. Key resolutions included the re-election of board members, the declaration of a final dividend, and the authority to purchase own shares. The resolutions received overwhelming support, reflecting strong shareholder confidence in the company’s strategic direction and governance.

Business Operations and StrategyFinancial Disclosures
Domino’s Pizza Reports Positive Q1 2025 Growth Amid Strategic Advancements
Positive
Apr 24, 2025

Domino’s Pizza Group PLC reported positive growth in its Q1 2025 trading statement, with total system sales increasing by 2.1% and like-for-like sales up by 0.5% compared to the previous year. The company highlighted improvements in delivery times and the success of its loyalty trial, which contributed to incremental orders. Despite a slight decline in collection orders, a national marketing campaign has shown promise in reversing this trend. Looking ahead, Domino’s remains confident in its strategic initiatives and store expansion plans, expecting to open over 50 new stores in FY25, while continuing to explore accretive opportunities and maintaining its commitment to shareholder returns.

Business Operations and StrategyRegulatory Filings and Compliance
Domino’s Pizza Sees Shift in Major Shareholder Voting Rights
Neutral
Apr 4, 2025

Domino’s Pizza Group PLC has announced a significant change in its shareholder structure, with The Capital Group Companies, Inc. increasing its voting rights in the company to 14.43%. This adjustment in holdings, reported on April 3, 2025, reflects a strategic move by The Capital Group to strengthen its influence within Domino’s, potentially impacting the company’s governance and future strategic decisions.

Business Operations and Strategy
Domino’s Pizza Group Sees Shift in Shareholding with Liontrust Acquisition
Neutral
Apr 4, 2025

Domino’s Pizza Group PLC has announced a significant change in its shareholding structure, with Liontrust Investment Partners LLP acquiring a notable percentage of voting rights. The acquisition, which resulted in Liontrust holding 5.9617% of the voting rights, reflects a shift in the company’s ownership dynamics and could influence its strategic direction and decision-making processes.

Executive/Board ChangesBusiness Operations and Strategy
Domino’s Pizza Group Announces Executive Share Awards
Neutral
Mar 18, 2025

Domino’s Pizza Group plc announced transactions involving its CEO, Andrew Rennie, and CFO, Edward Jamieson, under the company’s Long Term Incentive Plan and 2022 Share Plan. These transactions involve the grant of conditional awards and deferred bonus awards, which are set to vest after three years, contingent on performance and continued service. This move is part of the company’s strategy to align executive compensation with shareholder interests and long-term company performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.