Domino's Pizza, Inc. (DPZ) AI Stock Analysis
DPZ AI stock analysis summary
AI ResearchDomino's Pizza, Inc. (DPZ) is a global pizza chain operating across U.S. Stores, International Franchise, and Supply Chain segments. In FY2025, the company delivered revenue of $4.94B and diluted EPS of $17.57, up from $4.71B and $16.69 in FY2024. For the trailing twelve months, DPZ generated $5.07B in revenue with an operating margin of 20.4%.
- Market cap
- $10.15B
- Revenue (TTM)
- $5.07B
- P/E
- 17.0x fwd 14.2x
- 1Y return
- -24.4% S&P 500 16.8%
- Avg. target
- $356.48 15.5% vs last close
Bull case
- Free cash flow expanded to $671.5M in FY2025, supporting $357.7M in share buybacks and $236.9M in dividend payments.
- Trailing twelve month operating margin of 20.4% exceeds the median of its S&P 500 Consumer Cyclical peers of 13.6%.
- The consensus mean price target of $356.48 offers 15.5% potential upside from the October 16, 2026 close of $308.64.
Bear case
- The stock delivered a 1-year return of -24.4% while the S&P 500 gained 16.8%.
- The balance sheet reflects negative shareholders' equity of -$2.08B alongside net debt of $1.17B and a current ratio of 0.49.
- Domino's has beaten analyst earnings per share estimates in only 1 of the last 4 quarters.
What Domino's does
Domino's Pizza, Inc., founded in 1960 and headquartered in Ann Arbor, Michigan, is a global leader in the pizza industry operating through three primary segments: U.S. Stores, International Franchise, and Supply Chain. The company serves customers through company-owned and franchised outlets across 90 markets globally, operating approximately 18,800 stores as of January 2, 2022. Its menu features pizzas, oven-baked sandwiches, pasta dishes, boneless chicken, chicken wings, bread and dips, desserts, and soft drinks. In addition, Domino's operates an integrated supply chain that distributes quality ingredients to its store network worldwide.
Growth and profitability
Domino's revenue grew from $4.36B in FY2021 to $4.54B in FY2022, fell 1.3% to $4.48B in FY2023, and resumed growth to $4.71B in FY2024 and $4.94B in FY2025, yielding a 5-year revenue CAGR of 3.7%. Operating margin expanded from 17.9% in FY2021 and 16.9% in FY2022 to 19.3% in FY2025, while gross margin reached 40.0%. Net income reached $601.7M with EPS of $17.57 in FY2025. In the latest quarter ended September 30, 2026, quarterly revenue grew 3.4% year-over-year, while quarterly earnings grew 12.7% year-over-year, lifting trailing twelve month revenue to $5.07B and EPS to $18.15.
Balance sheet and cash flow
As of September 30, 2026, Domino's held $397.0M in cash and short-term investments against total debt of $1.56B, resulting in net debt of $1.17B. Total assets stood at $1.77B, while current ratio was 0.49 and shareholders' equity was -$2.08B, reflecting negative equity. Operating cash flow reached $792.1M and free cash flow was $671.5M in FY2025. Cash deployment in FY2025 included $120.6M in capital expenditures, $236.9M in dividends paid, and $357.7M in share buybacks, which contributed to a 5-year share count change of -9.7%.
Valuation and performance
At a last close of $308.64 on October 16, 2026, Domino's market cap was $10.15B and enterprise value was $14.76B. DPZ trades at a trailing P/E of 17.0x and forward P/E of 14.2x, both below the median of its S&P 500 Consumer Cyclical peers of 20.1x and 15.7x, respectively. Its price-to-sales of 2.0x matches the peer median of 2.0x, while EV/EBITDA of 14.0x is slightly above the peer median of 13.2x. Over the past year, DPZ shares fell 24.4% compared to a 16.8% gain for the S&P 500 (SPY).
DPZ dividend
Domino's pays a quarterly dividend with an annual forward payout of $7.96, representing a dividend yield of 2.58% and a payout ratio of 34.7%. The company has paid consecutive dividends for 15 years, delivering an annualized 5-year dividend growth rate of 17.4%. Its last ex-dividend date is December 15, 2026.
What analysts expect
Wall Street coverage consists of 12 Strong Buy, 2 Buy, 15 Hold, 0 Sell, and 1 Strong Sell recommendations. The mean price target of $356.48 implies 15.5% upside over the last close of $308.64. For the fiscal year ending December 31, 2026, analysts estimate EPS of $19.12 on revenue of $5.19B. For the following fiscal year, 25 analysts project revenue of $5.27B and EPS of $20.71. Domino's has beaten EPS estimates in 1 of the last 4 quarters.
Key risks and what to watch
- Short interest stands at 9.0% of float, reflecting negative sentiment in the market.
- The company maintains total debt of $1.56B and a low current ratio of 0.49 against cash and short-term investments of $397.0M.
- Consensus projections indicate revenue growth will slow to 1.7% in the next fiscal year, with revenue estimated at $5.27B.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DPZ AI stock analysis
This page is an AI-written research summary of Domino's Pizza, Inc. (DPZ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DPZ income statement, DPZ balance sheet, DPZ key metrics, DPZ analyst forecast, DPZ chart. See the DPZ stock overview for the latest quote and news.
DPZ AI stock analysis FAQ
What is Domino's dividend yield and payout schedule?
Domino's pays a quarterly dividend yielding 2.58%, based on an annual forward payout of $7.96 and a payout ratio of 34.7%.
What are analysts' price targets for DPZ?
The mean price target is $356.48, which represents a 15.5% premium to the October 16, 2026 closing price of $308.64.
How did Domino's perform financially in FY2025?
In FY2025, Domino's generated revenue of $4.94B, operating margin of 19.3%, and net income of $601.7M, resulting in EPS of $17.57.
What is the status of Domino's balance sheet and debt?
As of September 30, 2026, Domino's reported total debt of $1.56B, cash of $397.0M, net debt of $1.17B, and negative shareholders' equity of -$2.08B.