Wells Fargo analyst Zachary Fadem has maintained their neutral stance on DPZ stock, giving a Hold rating today.
Zachary Fadem has given his Hold rating due to a combination of factors impacting Domino’s Pizza’s outlook. The company’s recent quarterly performance fell short of expectations, with challenges in delivery sales and uncertainties surrounding key growth drivers like the Stuffed and DASH initiatives. Despite some positive developments, such as improved international sales and margin performance, the overall growth trajectory remains uncertain.
Fadem notes that the industry headwinds and competitive pressures are likely to persist, making it difficult to project significant acceleration in Domino’s growth for 2025. The stock’s price-to-earnings ratio appears to be at a balanced level, reflecting a risk/reward scenario that does not strongly favor either buying or selling at this time. Consequently, without clearer catalysts for growth, maintaining a Hold rating seems prudent.