In a report released today, Danilo Gargiulo from Bernstein maintained a Hold rating on Domino’s Pizza (DPZ – Research Report), with a price target of $440.00.
Danilo Gargiulo has given his Hold rating due to a combination of factors impacting Domino’s Pizza. The company is facing challenges in the quick-service restaurant pizza category, but it is managing to gain market share through strategic initiatives like partnerships with UberEats and innovations in its offerings. Despite these efforts, Domino’s has provided guidance indicating slower retail sales and unit growth for 2025 and 2026, along with lower than expected franchisee profitability.
While there are concerns about the core delivery business and uncertainties in international growth, the company’s cost discipline and scale could help protect its profitability. Bulls see potential in the conservative guidance and new product launches, such as the stuffed crust pizza, which could act as catalysts for growth. However, the overall outlook remains cautious due to macroeconomic pressures, leading to a moderated sales growth expectation while maintaining EPS forecasts. This balanced view results in a Hold rating, reflecting both the opportunities and challenges faced by Domino’s.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $440.00 price target.