Barclays Adjusts Price Target#
Barclays has reduced its price target for Domino’s Pizza (NYSE: DPZ) shares from $370 to $315, while maintaining an Underweight rating. Currently, the stock is trading at $335.06, which is a 23% decline over the past year and close to its 52-week low of $346.31. Some analysts believe the stock might be undervalued at this price.
Sales Performance Falls Short#
The bank pointed to disappointing first-quarter 2026 sales figures, both in the U.S. and internationally, which did not meet expectations. This shortfall has led to lower earnings per share (EPS) than anticipated. Specifically, U.S. sales trends slowed in the latter half of the first quarter, impacted by factors such as consumer sentiment, competition, and weather conditions.
Revised Guidance and Analyst Concerns#
In light of these results, Domino’s Pizza has adjusted its 2026 guidance for U.S. and international comparable sales, as well as worldwide retail sales and operating income growth. However, the company has kept its net unit growth guidance unchanged. Analysts have expressed concerns, with 14 of them revising their earnings forecasts downward for the upcoming period, reflecting worries about the company's short-term outlook.
Recent Earnings Report#
Domino’s Pizza recently reported its first-quarter 2026 earnings, which fell short of expectations. The company recorded an EPS of $4.13, missing the anticipated $4.28, and reported revenue of $1.15 billion, below the expected $1.17 billion. Following these results, other analysts have also adjusted their price targets. Stifel lowered its target from $485 to $400, while BTIG reduced its target from $500 to $450, both maintaining a Buy rating. The company is now focusing on pizza innovation and adjusting its promotional strategies to better navigate the challenging quick-service restaurant market.