Price Target Adjustment#
BTIG has lowered its price target for Domino’s Pizza shares (NYSE: DPZ) from $500 to $450. Despite this adjustment, the firm continues to maintain a Buy rating on the stock. This decision comes after the pizza chain reported weaker-than-expected same-store sales in the U.S.
Sales Performance#
Domino’s U.S. same-store sales fell short of expectations, causing its shares to drop to $335.06, nearing their 52-week low of $346.31. This decline reflects valuation levels not seen since 2012. Over the past year, the stock has decreased by 23%, indicating it may be undervalued according to InvestingPro data. The disappointing sales results contradict earlier guidance from February, which anticipated a stronger performance in the first half of 2026 compared to the second half.
Revised Sales Forecast#
BTIG has adjusted its forecast for U.S. same-store sales for Domino’s to just 1.1% for the year. Notably, 14 analysts have revised their earnings estimates downward for the upcoming period. However, Domino’s maintains a perfect Piotroski Score of 9, suggesting strong financial health. The company is also looking to innovate by pulling forward plans from future years and aims to leverage the World Cup this summer for growth.
Competitive Landscape#
The analyst firm noted that many of Domino’s competitors are closing restaurants and withdrawing from certain markets. Despite the recent sales challenges, BTIG believes that Domino’s is still positioned to gain market share in the long term.
Recent Earnings Report#
In its first-quarter 2026 earnings report, Domino’s reported earnings per share of $4.13, which fell short of the expected $4.28. The company also reported revenue of $1.15 billion, below the forecasted $1.17 billion. These results are crucial for investors as they highlight the current financial performance of the company, prompting analysts to reassess their outlooks. Investors will be closely watching how Domino’s responds strategically to these challenges.