Domino's Pizza (DOM) AI Stock Analysis

• Market Cap: £970.80M
• Dividend Yield: 443.55%
• Average Volume (3M): 809.16K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.79
• Revenue Growth: -2.25%
• EPS Growth: -18.24%
• Country: UK
• Employees: 2,058
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Restaurants
• EPS (TTM): 0.12
• Shares Outstanding: 394,712,740
• 10 Day Avg. Volume: 647,355
• 30 Day Avg. Volume: 809,158
• PEG Ratio: 0.71
• Price to Book (P/B): -11.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £345.00
• Price Target Upside: 39.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: 265.00p ▲(6.85%Upside)

Domino's Pizza has strong valuation metrics and positive corporate events, but financial leverage and negative equity are concerns. Technical indicators also show bearish trends.

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 Business Overview & Revenue Model

Company Description

Domino's Pizza, Inc. (DOM) is a leading global pizza delivery and carryout chain, headquartered in Ann Arbor, Michigan. The company operates in the quick service restaurant industry, specializing in the production and delivery of pizza and related food items such as pasta, chicken, sandwiches, and desserts. Domino's maintains a significant international presence with thousands of stores across numerous countries, serving customers through a franchise model that emphasizes quick service and convenience.

How the Company Makes Money

Domino's Pizza generates revenue primarily through its network of company-owned and franchised stores. The company's key revenue streams include sales from its company-owned stores, royalties and fees from franchised stores, and sales of food, equipment, and supplies to franchisees through its supply chain operations. Franchisees typically pay an upfront franchise fee as well as ongoing royalties based on a percentage of sales. Domino's also benefits from its robust digital ordering platform, which enhances customer engagement and facilitates seamless ordering and delivery services. Strategic partnerships with third-party delivery services and technology providers further support its revenue growth 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	664.50M	679.80M	600.30M	560.80M	505.10M
Gross Profit	318.90M	316.20M	273.50M	268.60M	236.50M
EBITDA	171.30M	190.40M	141.60M	148.10M	141.90M
Net Income	90.20M	115.00M	81.60M	78.30M	82.20M
Balance Sheet
Total Assets	602.90M	512.50M	520.70M	522.00M	592.20M
Cash, Cash Equivalents and Short-Term Investments	52.20M	52.10M	30.40M	44.70M	65.40M
Total Debt	547.40M	515.20M	507.10M	465.10M	470.10M
Total Liabilities	685.10M	646.50M	633.50M	580.60M	601.00M
Stockholders Equity	-82.20M	-134.00M	-112.80M	-58.60M	-8.80M
Cash Flow
Free Cash Flow	85.00M	92.70M	65.40M	99.60M	92.80M
Operating Cash Flow	103.50M	113.50M	85.10M	113.90M	112.20M
Investing Cash Flow	-200.00K	94.70M	29.50M	32.80M	-17.80M
Financing Cash Flow	-103.00M	-186.50M	-127.40M	-174.70M	-38.60M

Domino's Pizza Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 248.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DOM, the sentiment is Neutral. The current price of 248 is below the 20-day moving average (MA) of 251.14, below the 50-day MA of 256.58, and below the 200-day MA of 283.52, indicating a bearish trend. The MACD of -3.29 indicates Positive momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 31.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:DOM.

Domino's Pizza Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSPG	73 Outperform	£1.45B	51.84	12.09%	204.19%	14.07%	236.27%
DOM	67 Neutral	£970.80M	10.79		443.55%	-2.25%	-18.24%
JDW	67 Neutral	£856.87M	15.24	16.38%	186.33%	3.70%	57.10%
Sector *	64 Neutral	£1.74B	10.45	6.12%	255.82%	0.55%	-33.64%
DPP	57 Neutral	£96.73M	―	-2.17%	―	20.22%	86.00%
TAST	54 Neutral	£1.09M	0.05		―	-21.95%	―
MEX	53 Neutral	£17.21M	―	-277.22%	―	3.54%	-203.89%

Domino's Pizza Corporate Events

Domino’s Pizza Group Updates Shareholders on Voting Rights and Capital

Domino’s Pizza Group plc announced that as of June 30, 2025, the company has 394,712,748 issued ordinary shares, 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.

Domino’s Pizza Group Announces Board Change with Lynn Fordham’s New Role

Domino’s Pizza Group PLC announced a change in its board of directors, with Lynn Fordham, the Senior Independent Director, being appointed as Chair of Pollen Street Group Limited. This change in leadership may influence the strategic direction and governance of both companies, potentially impacting stakeholders and market perceptions.

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.

Domino’s Pizza Group PLC Announces Change in Shareholder Voting Rights

Domino’s Pizza Group PLC has announced a change in its shareholder voting rights, with Browning West, LP reducing its stake from 8.97% to 4.90%. This shift in voting rights could impact the company’s decision-making processes and influence its strategic direction, as significant stakeholders adjust their positions.

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.

Domino’s Pizza Group Updates Shareholders on Voting Rights and Capital

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.

Liontrust Adjusts Holdings in Domino’s Pizza Group

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.

Domino’s Pizza Group Announces Board Changes

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.

Domino’s Pizza Group Sees Shift in Major Shareholdings

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.

Domino’s Pizza Group Announces Share Capital Update

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.