On Oct 11, major Wall Street analysts update their ratings for $Domino's Pizza (DPZ.US)$, with price targets ranging from $370 to $557.
Morgan Stanley analyst Brian Harbour maintains with a buy rating, and maintains the target price at $510.
J.P. Morgan analyst John Ivankoe maintains with a hold rating, and adjusts the target price from $470 to $450.
BofA Securities analyst Sara Senatore maintains with a buy rating, and adjusts the target price from $582 to $557.
Citi analyst Jon Tower maintains with a hold rating, and adjusts the target price from $450 to $440.
Barclays analyst Jeff Bernstein maintains with a sell rating, and maintains the target price at $370.
Furthermore, according to the comprehensive report, the opinions of $Domino's Pizza (DPZ.US)$'s main analysts recently are as follows:
The evaluation of Domino's Pizza's recent quarter could be seen as varied, with domestic performance aligning with expectations, while international sectors primarily influenced a subdued revenue forecast. Looking ahead to 2025, the current projections might reflect a cautious stance potentially serving as a buffer against risks. However, there is still some ambiguity surrounding the conservative nature of these projections and the factors that will sustain domestic same-store sales growth exceeding 3% in FY25.
The company's reported U.S. comparable sales of 3.0% consisted of a notable 2.7% contribution from partnerships with Uber and other third-party channels, coupled with a 1.6% increase due to pricing. Overall, the results demonstrate that the company is facing challenges from an increasingly competitive marketplace.
Domino's Pizza's Q3 results and commentary suggest that the U.S. pizza sector is reverting to its pre-pandemic norms. The industry remains intensely competitive, with Domino's positioned as the leader and a consistent long-term market share gainer. However, same-store sales on a quarterly basis are influenced by the current success in value propositions, promotional battles, and innovative offerings.
Following the Q3 report, expectations for Domino's Pizza's FY24 earnings per share have been adjusted to reflect a more conservative stance, taking into account a moderated pace in international system growth and U.S. system comps, though this is somewhat balanced by reductions in supply chain costs and general & administrative expenses. Additionally, projections for FY25 earnings per share have been similarly revised, incorporating a tempered outlook on global system sales growth.
Domino's Pizza's third quarter presented a mix of outcomes, with U.S. and International comparable sales not meeting expectations, although adjusted EBITDA and EPS matched projections. Moving forward, the guidance for 2024 net unit growth has been moderated, particularly due to International factors, resulting in a more conservative outlook on global sales and profits. It is anticipated that these difficulties will extend into 2025.
Here are the latest investment ratings and price targets for $Domino's Pizza (DPZ.US)$ from 18 analysts:
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
