Valued at a market cap of $15.8 billion, Ann Arbor, Michigan-based Domino's Pizza, Inc. (DPZ) is a leading player in the Quick-Service Restaurant (QSR) pizza category. The company operates through three segments - U.S. Stores, International Franchise, and Supply Chain, offering its products through both company-owned and franchised locations.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Domino's Pizza fits this criterion perfectly. In addition to its signature pizzas, Domino's serves a variety of menu items, including bread products, chicken wings, pasta, sandwiches, dips, desserts, and soft drinks.
However, the pizza chain company pulled back 15.3% from its 52-week high of $542.75. Shares of Domino's Pizza have risen 6.2% over the past three months, outpacing the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 12.4% decrease over the same time frame.
Longer term, DPZ stock is up 9.5% on a YTD basis, outperforming XLY’s 8.8% decline. Nevertheless, shares of Domino's Pizza have declined 4.8% over the past 52 weeks, lagging behind XLY’s 12.2% return over the same time frame.
Since late January, DPZ stock has been trading mostly above its 50-day and 200-day moving averages.
Shares of Domino’s Pizza fell 1.5% on Feb. 24 after the company’s Q4 2024 results missed analysts’ expectations on both revenue and earnings. EPS came in at $4.89, up 9.2% year-over-year but missing the estimate, while revenue rose 2.9% to $1.4 billion, falling short of the forecast. Despite strong metrics like a 31st consecutive year of international same-store sales growth and nearly 800 net new store openings, management flagged consumer spending headwinds and emphasized a shift in 2025 strategy toward market share gains over aggressive growth.
However, in comparison, rival McDonald's Corporation (MCD) has lagged behind Domino's Pizza. Shares of McDonald's have gained 11.9% over the past 52 weeks and 7.5% on a YTD basis.
Despite DPZ’s outperformance on a YTD basis, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 29 analysts covering the stock, and as of writing, it is trading below the mean price target of $491.27.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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