Gordon Haskett downgraded shares of Domino’s Pizza (NASDAQ:DPZ – Free Report) from a strong-buy rating to a hold rating in a research note published on Wednesday morning,Zacks reports.
DPZ has been the topic of several other research reports. KeyCorp reaffirmed a “sector weight” rating on shares of Domino’s Pizza in a research report on Wednesday. Oppenheimer lowered their price target on Domino’s Pizza from $465.00 to $415.00 and set an “outperform” rating for the company in a research report on Tuesday, July 21st. Wells Fargo & Company dropped their price objective on Domino’s Pizza from $350.00 to $320.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Evercore restated an “outperform” rating on shares of Domino’s Pizza in a research note on Thursday, July 9th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Domino’s Pizza from $380.00 to $350.00 and set an “overweight” rating on the stock in a report on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Domino’s Pizza presently has an average rating of “Moderate Buy” and an average target price of $380.87.
Check Out Our Latest Stock Report on DPZ
Domino’s Pizza Trading Down 0.1%
Domino’s Pizza (NASDAQ:DPZ – Get Free Report) last issued its quarterly earnings data on Tuesday, October 13th. The restaurant operator reported $4.60 EPS for the quarter, topping analysts’ consensus estimates of $4.33 by $0.27. The firm had revenue of $1.19 billion during the quarter. Domino’s Pizza had a negative return on equity of 15.48% and a net margin of 12.03%. The business’s revenue for the quarter was up 3.4% on a year-over-year basis. During the same period in the prior year, the firm posted $4.08 earnings per share. On average, research analysts forecast that Domino’s Pizza will post 18.98 EPS for the current year.
Domino’s Pizza Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 30th. Investors of record on Tuesday, December 15th will be given a dividend of $1.99 per share. This represents a $7.96 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, December 15th. Domino’s Pizza’s dividend payout ratio (DPR) is presently 43.86%.
Insiders Place Their Bets
In related news, EVP Kelly Garcia sold 12,430 shares of Domino’s Pizza stock in a transaction on Wednesday, July 22nd. The stock was sold at an average price of $322.04, for a total transaction of $4,002,957.20. Following the sale, the executive vice president directly owned 9,352 shares in the company, valued at approximately $3,011,718.08. This trade represents a 57.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Russell Weiner sold 10,850 shares of the business’s stock in a transaction on Friday, July 17th. The stock was sold at an average price of $330.83, for a total value of $3,589,505.50. Following the completion of the transaction, the chief executive officer directly owned 43,829 shares in the company, valued at approximately $14,499,948.07. This represents a 19.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.89% of the company’s stock.
Institutional Investors Weigh In On Domino’s Pizza
A number of hedge funds have recently made changes to their positions in the business. Berkshire Hathaway Inc grew its position in Domino’s Pizza by 12.3% during the fourth quarter. Berkshire Hathaway Inc now owns 3,350,000 shares of the restaurant operator’s stock valued at $1,396,347,000 after buying an additional 368,055 shares during the period. Soroban Capital Partners LP purchased a new stake in Domino’s Pizza during the first quarter worth about $895,251,000. BlackRock Inc. bought a new stake in Domino’s Pizza in the second quarter worth about $715,704,000. T. Rowe Price Investment Management Inc. raised its position in Domino’s Pizza by 0.4% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,008,278 shares of the restaurant operator’s stock worth $837,091,000 after acquiring an additional 7,497 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its position in Domino’s Pizza by 247.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 527,246 shares of the restaurant operator’s stock worth $189,171,000 after acquiring an additional 375,709 shares during the period. 94.63% of the stock is currently owned by institutional investors.
Key Stories Impacting Domino’s Pizza
Here are the key news stories impacting Domino’s Pizza this week:
- Positive Sentiment: Domino’s reported third-quarter earnings of $4.60 per share and revenue of $1.19 billion, exceeding consensus estimates of $4.33–$4.38 and approximately $1.17 billion. Earnings increased from $4.08 a year earlier. Domino’s Q3 revenue report
- Positive Sentiment: Supply-chain revenue, franchise royalties and continued share repurchases supported profitability, while management said more frequent customer visits are partly offsetting smaller orders. Domino’s Q3 earnings and supply-chain report
- Positive Sentiment: The company declared a quarterly dividend of $1.99 per share, equivalent to $7.96 annually and a stated yield of about 2.7%, providing income support for shareholders.
- Neutral Sentiment: Analyst opinion remains mixed. BTIG reaffirmed a Buy rating with a $425 target, while Bank of America retained Buy despite lowering its target to $410. Morgan Stanley, RBC, Baird and Citigroup maintained neutral or market-perform views, with targets ranging from $308 to $345.
- Negative Sentiment: U.S. same-store sales rose only 0.3%, and management indicated pressure on items per order. Slower international sales, narrower store margins, stronger competition and cautious consumer spending are weighing on demand. Domino’s forecasts muted same-store sales
- Negative Sentiment: Several analysts cut price targets following the results, including Citigroup, Morgan Stanley, RBC, Baird and Bank of America. The revisions suggest that the earnings beat is viewed as less sustainable while the consumer environment remains challenging.
About Domino’s Pizza
Domino’s Pizza, Inc is a global quick-service restaurant company specializing in pizza delivery and carryout. Its menu includes a variety of pizzas, sides, desserts and beverages, with orders placed through digital platforms, phone ordering and participating stores.
Founded in 1960 in Ypsilanti, Michigan, Domino’s began as a small pizza business and adopted its current name in 1965. The company has expanded through a primarily franchise-based model, supported by company-owned stores and an integrated supply chain that provides food and other products to many participating locations.
Domino’s serves customers in the United States and international markets across North America, Europe, Asia-Pacific, the Middle East, Africa and other regions.
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