Domino's Pizza Will Grow With Stuffed Crust & DoorDash Partnership, Say Analysts

Domino’s Pizza Inc DPZ reported the first-quarter FY25 earnings on Monday. Several analysts have provided their opinion on the pizza restaurant chain’s performance.

BofA Securities analyst Sara Senatore reiterated a Buy rating on the shares and raised the price forecast from $520.00 to $549.00.

Despite Domino's weaker-than-expected Q1 domestic same-store sales growth (SSSG), results aligned with internal plans, including share gains in the QSR pizza segment, said the analyst.

She expects performance to accelerate with innovations like stuffed crust and the DoorDash partnership. Supply chain productivity and sales leverage are seen supporting EBIT growth.

FY25 EPS is raised on stronger SSSG, while second-quarter EPS is trimmed due to a higher tax rate.

RBC Capital Markets analyst Logan Reich reiterated an “Outperform” rating on the shares and raised the price target from $500 to $550.

Domino’s first-quarter results were mixed. International same-store sales (SSS) beat expectations, and U.S. market share gains continued despite consumer headwinds, noted the analyst.

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Japan’s store closures are mostly complete, and FY25 guidance for SSS, unit growth, and 8%+ EBIT growth (FXN) was reiterated. However, broader category weakness persists, especially among low-income consumers, noted the analyst.

Benchmark analyst Todd Brooks reiterated a Buy rating on the shares and raised the price forecast from $520 to $535.

Domino's expects U.S. same-store sales (SSS) to accelerate in 2H25 and into FY26, driven by two key initiatives: the successful launch of stuffed crust pizza and the upcoming DoorDash rollout, expected to add up to 300bps to SSS.

Management maintained FY25 U.S. SSS guidance at 3%, citing strong value positioning, effective promotions like the “$9.99 Best Deal Ever,” and ongoing share gains in both delivery and carryout channels, the analyst opined.

BMO Capital analyst Andrew Strelzik reiterated an “Outperform” rating on the shares and raised the price target from $515 to $540.

Domino's U.S. same-store sales (SSS) declined 0.5% in the first quarter, missing expectations due to macro headwinds and tough comparisons, though the company still gained market share.

International SSS rose 3.7%, beating consensus with strength in India and Canada. U.S. comps are expected to accelerate through 2025, driven by the launch of Stuffed Crust and the rollout of DoorDash.

Management reiterated its unit growth guidance and expects minimal impact from tariffs on development.

Price Action: DPZ shares traded higher by 0.19% at $491.56 at last check Tuesday.

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