Restaurant chain Domino’s Pizza (DPZ) captured the attention of several Top Wall Street analysts after reporting its fourth-quarter results. While the company posted weaker-than-expected Q4 earnings and revenues, Domino’s market share in the fast-food pizza segment rose by 1% in 2024. Following the release, three Top analysts reiterated a Buy rating on DPZ stock, given the company’s strong competitive position and strategic growth initiatives.
One of the key highlights from the Q4 earnings report was the 15% increase in the quarterly dividend. This move reflects the company’s confidence in its financial position and commitment to reward shareholders.
Analysts Upbeat on DPZ’s Strategic Moves
Among the bullish analysts, Chris O’Cull from Stifel Nicholas raised the price target on Domino’s to $500 from $470. He pointed out that Domino’s continues to use its “value leadership” to gain market share in a highly competitive fast-food market.
Further, O’Cull noted the company’s several initiatives can drive sales in 2025, such as expansion into third-party marketplaces, launch of new products, and loyalty program growth. Also, the analyst believes that these efforts position DPZ well against its rivals.
Similarly, John Blackledge from TD Cowen expects Domino’s strategic moves to boost its market position. The five-star analyst remains optimistic about the company’s long-term strategy, focused on balancing traffic and sales growth.
Moreover, Blackledge sees the extended deal with Uber (UBER) to remain Domino’s exclusive third-party platform, as a positive factor. He anticipates the move will improve Domino’s delivery capabilities and help sustain growth.
Is DPZ Stock a Buy or Sell?
Turning to Wall Street, DPZ stock has a Moderate Buy consensus rating based on 11 Buys, six Holds, and one Sell assigned in the last three months. At $486.39, the average Domino’s stock price target implies 6.75% upside potential. Shares of the company have gained 8.1% in the past six months.
