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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)

66Neutral
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.
Investment Value
Domino's Pizza trades at a price-to-earnings ratio significantly below the pre-COVID average, suggesting potential investment value.
Loyalty Program
The loyalty program's second phase has started, showing early signs of incremental orders across all customer groups.
Negative Factors
Cost Implications
New guidance implies an estimated headwind to EBITDA with increased costs associated with marketing, digital investment, and wage costs.
Franchisee Profitability
Franchisee profitability will likely remain under pressure given wage cost inflation from the recent UK Budget.
Sales and Orders
There is a very slight slowdown in like-for-like sales and orders, mainly due to the timing of Easter.

Domino's Pizza (DOM) vs. S&P 500 (SPY)

Domino's Pizza Business Overview & Revenue Model

Company DescriptionDomino's Pizza, Inc. is a leading global pizza delivery and carryout chain, headquartered in Ann Arbor, Michigan. Established in 1960, the company operates and franchises pizza stores in the United States and internationally. Domino's offers a wide range of pizzas with various toppings, alongside other menu items like chicken wings, pasta, sandwiches, and desserts. Known for its innovation in delivery technology, Domino's has become synonymous with quick service and convenience in the pizza industry.
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
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
673.70M679.80M600.30M560.80M505.10M508.30M
Gross Profit
310.00M316.20M273.50M268.60M236.50M234.80M
EBIT
115.30M111.90M122.90M130.70M121.90M86.50M
EBITDA
137.10M190.40M141.60M148.10M141.90M105.30M
Net Income Common Stockholders
77.10M115.00M81.60M78.30M82.20M59.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
52.10M52.10M30.40M44.70M65.40M11.10M
Total Assets
512.50M512.50M520.70M522.00M592.20M353.90M
Total Debt
515.20M515.20M507.10M465.10M470.10M248.30M
Net Debt
463.10M463.10M476.70M422.30M406.70M237.20M
Total Liabilities
646.50M646.50M633.50M580.60M601.00M395.20M
Stockholders Equity
-134.00M-134.00M-112.80M-58.60M-8.80M-29.60M
Cash FlowFree Cash Flow
69.60M92.70M65.40M99.60M92.80M36.80M
Operating Cash Flow
83.20M113.50M85.10M113.90M112.20M60.20M
Investing Cash Flow
-11.30M94.70M29.50M32.80M-17.80M-22.50M
Financing Cash Flow
-83.10M-186.50M-127.40M-174.70M-38.60M-39.80M

Domino's Pizza Technical Analysis

Technical Analysis Sentiment
Negative
Last Price271.60
Price Trends
50DMA
274.55
Negative
100DMA
280.62
Negative
200DMA
291.41
Negative
Market Momentum
MACD
-1.77
Negative
RSI
45.97
Neutral
STOCH
56.38
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 271.6 is above the 20-day moving average (MA) of 269.64, below the 50-day MA of 274.55, and below the 200-day MA of 291.41, indicating a bearish trend. The MACD of -1.77 indicates Negative momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 56.38 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
71
Outperform
£1.34B48.7512.09%2.09%14.07%236.27%
GBDOM
66
Neutral
£1.05B11.67
4.11%-2.25%-18.24%
GBJDW
66
Neutral
£791.26M13.8016.38%1.66%3.70%57.10%
62
Neutral
$6.98B11.382.86%3.90%2.64%-22.07%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DOM
Domino's Pizza
271.60
-55.57
-16.99%
GB:SSPG
SSP Group plc
176.60
-1.77
-0.99%
GB:JDW
J D Wetherspoon
735.00
-35.83
-4.65%

Domino's Pizza Corporate Events

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.

Spark’s Take on GB:DOM Stock

According to Spark, TipRanks’ AI Analyst, GB:DOM is a Neutral.

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.

To see Spark’s full report on GB:DOM stock, click here.

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.

Spark’s Take on GB:DOM Stock

According to Spark, TipRanks’ AI Analyst, GB:DOM is a Neutral.

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.

To see Spark’s full report on GB:DOM stock, click here.

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.

Spark’s Take on GB:DOM Stock

According to Spark, TipRanks’ AI Analyst, GB:DOM is a Neutral.

Domino’s Pizza demonstrates solid financial performance with robust cash flows but faces challenges due to high leverage. Technical indicators suggest a cautious market stance with weak momentum. The undervaluation and attractive dividend yield boost its appeal, while recent corporate events and insider confidence provide a positive outlook.

To see Spark’s full report on GB:DOM stock, click here.

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.

Spark’s Take on GB:DOM Stock

According to Spark, TipRanks’ AI Analyst, GB:DOM is a Neutral.

Domino’s Pizza demonstrates solid financial performance with robust cash flows but faces challenges due to high leverage. Technical indicators suggest a cautious market stance with weak momentum. The undervaluation and attractive dividend yield boost its appeal, while recent corporate events and insider confidence provide a positive outlook.

To see Spark’s full report on GB:DOM stock, click here.

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.

DividendsRegulatory Filings and Compliance
Domino’s CFO Engages in Share Transactions
Neutral
Mar 13, 2025

Domino’s Pizza Group PLC announced a transaction involving its Chief Financial Officer, Edward Jamieson, who received dividend equivalent shares under a conditional share award. Additionally, shares were sold to cover tax and national insurance liabilities. These transactions reflect internal financial management and compliance with regulatory requirements, potentially impacting stakeholder perceptions of corporate governance.

Other
Domino’s Senior Director Buys Shares, Signaling Confidence
Positive
Mar 11, 2025

Domino’s Pizza Group plc announced a transaction involving Ian Bull, the Senior Independent Director, who purchased 5,000 ordinary shares at a price of £2.81 each. This transaction highlights the confidence of the company’s management in its market position and future prospects, potentially impacting investor perceptions and stakeholder confidence.

Executive/Board ChangesBusiness Operations and Strategy
Domino’s Pizza Group Appoints Ian Bull as New Chair
Neutral
Mar 11, 2025

Domino’s Pizza Group Plc has announced the appointment of Ian Bull as the new Chair, succeeding Matt Shattock after the Annual General Meeting on April 24, 2025. Ian Bull, who has been with the company since 2019, brings extensive experience from his previous executive roles and aims to continue the strategic growth of the company. The transition marks a strategic shift as the company seeks a UK-based leadership to further accelerate its growth strategy. Additionally, several board committee changes have been announced to enhance governance and operational oversight.

Business Operations and StrategyFinancial Disclosures
Domino’s Pizza Group Reports Strong 2024 Financial Results and Strategic Growth Plans
Positive
Mar 11, 2025

Domino’s Pizza Group plc reported strong financial results for the year ending December 2024, driven by strategic and operational progress. The company achieved a 6.4% increase in underlying EBITDA and a 13.3% rise in underlying EPS, supported by disciplined investments and a new five-year growth framework with franchise partners. Despite a 21.6% decrease in statutory profit after tax, the company remains optimistic about 2025, with plans to open over 50 new stores and continue leveraging its scale and capabilities. The announcement highlights Domino’s focus on growth opportunities in Ireland and Poland, shareholder returns, and enhancing its market positioning through initiatives like a loyalty program and partnerships with platforms like Uber Eats.

Regulatory Filings and Compliance
Domino’s Pizza Group Announces Share Capital Update
Neutral
Mar 3, 2025

Domino’s Pizza Group plc has announced that as of 28 February 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 interests or changes in their interests in compliance with the FCA’s Disclosure Guidance and Transparency Rules.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.