Price Target Adjustment#
Stifel has reduced its price target for Domino's Pizza shares from $485 to $400 while still keeping a Buy rating on the stock. This change comes after the company reported a lackluster first quarter for fiscal 2026, where domestic sales saw only a 0.9% increase.
Current Stock Performance#
As of now, Domino's Pizza shares are trading at $335.06, close to their 52-week low of $346.31. The company is focusing on pizza innovation and modifying its promotional strategies to navigate a challenging environment for quick-service restaurants.
Financial Metrics#
Stifel highlighted that Domino's is leveraging its size and marketing capabilities to ensure profitability for its franchisees. The firm believes that competitors may struggle to maintain sales volume while offering discounts that could reduce profit margins. Since 2019, Domino's has experienced about 5% revenue growth and a 10% increase in earnings per share annually. Currently, the stock has a price-to-earnings (P/E) ratio of 18.99 and a market cap of $11.23 billion, suggesting it may be undervalued compared to its fair value.
Recent Earnings Report#
In its recent earnings report for the first quarter of 2026, Domino's reported earnings per share (EPS) of $4.13, falling short of the expected $4.28. Revenue also came in lower than anticipated at $1.15 billion, compared to the forecast of $1.17 billion. This underperformance was coupled with disappointing same-store sales in the U.S., contradicting earlier expectations for a stronger performance in the first half of the year. Following these results, BTIG also adjusted its price target for Domino's shares from $500 to $450, while maintaining a Buy rating.