Domino's Pizza, Inc. (DPZ) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Domino's Pizza, Inc. (DPZ) Consumer Business Overview

Domino's Pizza, Inc. is a leading global pizza company distinguished by its extensive franchise network and efficient supply chain, operating in a competitive consumer cyclical sector. The company leverages its brand recognition and digital ordering capabilities to maintain market share against both traditional and emerging competitors.

What Is the Investment Thesis for DPZ?

With a market capitalization of $10.4B and a P/E ratio of 16.91, Domino's exhibits financial stability. The company's profit margin of 11.9% and gross margin of 40.1% indicate strong operational efficiency. A dividend yield of 2.23% offers an income component for investors. Growth catalysts include continued international expansion, digital innovation, and menu diversification. Potential risks involve increasing competition, fluctuating ingredient costs, and changing consumer preferences. Investors should monitor Domino's ability to maintain its market share and adapt to evolving market dynamics.

Based on FMP financials and quantitative analysis

DPZ Key Highlights

Market capitalization of $10.4B, reflecting its significant presence in the global pizza market.

• P/E ratio of 16.91, indicating a reasonable valuation relative to its earnings.
• Profit margin of 11.9%, showcasing efficient cost management and pricing strategies.
• Gross margin of 40.1%, highlighting the strength of its supply chain and pricing power.
• Dividend yield of 2.23%, providing a steady income stream for investors.

Who Are DPZ's Competitors?

DPZ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are DPZ's Key Strengths?

Global brand recognition.

• Extensive franchise network.
• Efficient supply chain.
• Strong digital ordering platform.

What Are DPZ's Weaknesses?

Dependence on pizza sales.

• Exposure to ingredient price fluctuations.
• High competition in the fast-food industry.
• Potential for negative publicity from franchisee issues.

What Could Drive DPZ Stock Higher?

Continued expansion of international franchise locations, particularly in emerging markets.

• Implementation of new technologies to enhance the digital ordering experience.
• Launch of new menu items to attract a broader customer base.
• Strategic partnerships with other companies to expand brand reach.
• Optimization of the supply chain to reduce costs and improve efficiency.

What Are the Key Risks for DPZ?

Negative return on equity (-15.0%) — the business is not currently generating profit on shareholder capital.

• Inconsistent delivery — missed Wall Street EPS estimates in 4 of the last 8 reported quarters.
• Insider selling — insiders were net sellers of roughly $1.3M recently.
• Increasing competition from other pizza chains and fast-food restaurants.
• Fluctuations in ingredient prices affecting profitability.
• Changing consumer preferences impacting demand for pizza.
• Economic downturns reducing consumer spending on discretionary items.
• Supply chain disruptions affecting the availability of ingredients and supplies.

What Are the Growth Opportunities for DPZ?

• International Expansion: Domino's has significant growth potential in emerging markets where pizza consumption is increasing. Expanding its presence in countries across Asia and South America could substantially increase its revenue base. The company's established franchise model facilitates rapid expansion with lower capital expenditure. Successfully penetrating these markets requires adapting to local tastes and preferences, but the potential market size is substantial.
• Digital Innovation: Investing in technology to enhance the customer experience can drive sales growth. Improving the mobile app, enhancing online ordering platforms, and utilizing data analytics to personalize offers can increase customer loyalty and order frequency. The market for digital food ordering is expanding rapidly, and Domino's is well-positioned to capitalize on this trend. Further development of drone delivery and other innovative technologies could provide a competitive edge.
• Menu Diversification: Expanding the menu beyond traditional pizza offerings can attract new customers and increase order values. Introducing new appetizers, desserts, and side dishes can appeal to a broader range of tastes and preferences. Collaborating with other food brands or celebrity chefs could generate excitement and drive traffic to Domino's stores. The market for diverse fast-food options is growing, and Domino's can leverage its existing infrastructure to capitalize on this trend.
• Supply Chain Optimization: Enhancing the efficiency and resilience of its supply chain can reduce costs and improve profitability. Investing in advanced logistics technology and diversifying its supplier base can mitigate the impact of ingredient price fluctuations and supply chain disruptions. The market for efficient food distribution is becoming increasingly competitive, and Domino's can leverage its scale to gain a competitive advantage. Streamlining the supply chain ensures consistent product quality and availability, enhancing customer satisfaction.
• Strategic Partnerships: Collaborating with other companies can expand Domino's reach and brand awareness. Partnering with sports teams, entertainment venues, and other businesses can create new marketing opportunities and drive sales. Integrating Domino's ordering platform with other popular apps and services can make it easier for customers to place orders. The market for strategic partnerships is growing, and Domino's can leverage its brand recognition to attract valuable collaborations.

What Are DPZ's Competitive Advantages?

• Strong brand recognition and customer loyalty.
• Extensive franchise network providing economies of scale.
• Efficient supply chain ensuring consistent product quality.
• Advanced digital ordering platforms enhancing customer experience.

What Does DPZ Do?

Founded in 1960 in Ann Arbor, Michigan, Domino's Pizza, Inc. has evolved from a single pizza store into a global leader in the pizza delivery industry. The company operates through three primary segments: U.S. Stores, International Franchise, and Supply Chain. The U.S. Stores segment includes both company-owned and franchised locations across the United States. The International Franchise segment focuses on granting and supporting franchise operations in numerous countries around the world. The Supply Chain segment manufactures and distributes food, equipment, and supplies to Domino's stores, ensuring consistency and quality across the brand. Domino's offers a diverse menu featuring pizzas, oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products. As of January 2, 2022, Domino's operated approximately 18,800 stores in 90 markets, demonstrating its extensive global footprint. The company's commitment to technological innovation, particularly in online and mobile ordering, has been a key driver of its growth and market leadership. Domino's continues to focus on enhancing customer experience and expanding its reach through strategic partnerships and store development.

What Products and Services Does DPZ Offer?

• Operates a global pizza delivery network.
• Franchises Domino's stores internationally.
• Manages a supply chain for ingredients and equipment.
• Offers a variety of pizza, sandwiches, and side dishes.
• Utilizes digital platforms for online ordering.
• Provides delivery and carryout services.

How Does DPZ Make Money?

• Generates revenue through company-owned store sales.
• Collects franchise fees and royalties from franchised stores.
• Profits from the sale of food and supplies to franchisees.
• Focuses on efficient delivery and online ordering.

What Industry Does DPZ Operate In?

Domino's Pizza, Inc. operates within the highly competitive restaurant industry, characterized by evolving consumer preferences and intense rivalry. The global fast-food market is experiencing growth driven by convenience and affordability. Domino's competes with other major pizza chains, as well as quick-service restaurants offering diverse cuisines. The company's focus on delivery and digital ordering positions it favorably in the current market environment. Domino's must continue to innovate and adapt to changing consumer tastes to maintain its competitive edge against companies like YUMC: Yum China Holdings, Inc. and H: Hyatt Hotels Corporation.

Who Are DPZ's Key Customers?

• Individual consumers seeking convenient meal options.
• Families looking for affordable and shareable meals.
• Businesses ordering food for meetings and events.
• Students and young adults.

Over the past six months, Domino's Pizza, Inc. insiders filed 15 SEC Form 4 transactions — 10 sales and 5 purchases. On net that is roughly 3K shares disposed (about $1.3M), a signal worth weighing alongside the fundamentals.

Domino's Pizza, Inc. has missed Wall Street's EPS estimate in 4 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 1.5% above estimates on average.

Domino's Pizza, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.74 places it in the grey zone, a middle ground that warrants monitoring.

Return on equity for Domino's Pizza, Inc. stands at -15.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 32.1%, showing how much profit it generates from its asset base. DPZ trades at a trailing price-to-earnings ratio of 16.91, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 6.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.60 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.9%, the inverse of the P/E and a quick read on earnings relative to price.

Domino's Pizza, Inc. (DPZ) Valuation Context

Valued at $10.4B, DPZ is classified as a large-cap stock. Analyst price targets span from $315.00 to $480.00, with a consensus of $378.79. At the current price of $314.74, that implies approximately 20% upside potential. Relative to its peer group, DPZ's quantitative score of 81/100 is roughly in line with the peer average of 73/100.

DPZ Revenue & Earnings Trend

In Q2 FY2026, DPZ generated $1.19B in top-line revenue, marking a sequential increase of 3.8%. The company recorded net income of $135.8M, with diluted EPS of $4.07. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Consumer Cyclical. Across the four most recent quarters, DPZ averaged $4.40 in diluted EPS.

Company Profile

Domino's Pizza, Inc. operates in the Restaurants industry within the Consumer Cyclical sector. It is headquartered in Ann Arbor, US. The company is led by CEO Russell J. Weiner. DPZ has traded publicly since 2004.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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