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Domino's Pizza Inc Common Stock (DPZ) Stock

Domino's Pizza Inc Common Stock Stock Details, Movements and Public Alerts

Domino's Pizza Inc (DPZ): The $18 Billion Digital Delivery Empire with 96% Franchised Growth Model

Under CEO Russell Weiner's leadership since 2022, Domino's has accelerated its technology-first strategy begun under predecessor Patrick Doyle. The company's Domino's Tracker®, AnyWare ordering platform (allowing orders via smart TV, Alexa, Apple Watch), and GPS driver tracking transformed customer experience while generating industry-leading digital sales mix. Domino's operates through three revenue streams: U.S. company-owned stores (5% of total), U.S. franchises (60%), and international franchises (35%), with franchise economics driving exceptional returns on capital. Recent innovations including Domino's Carside Delivery, Pinpoint Delivery technology, and expanding Pizza Theatre store format demonstrate continued innovation. Despite 24x P/E valuation appearing full, Domino's projects adding 1,100+ net new stores annually through 2028, while same-store sales growth of 3-5% compounds with unit expansion creating double-digit EPS growth runway.

52-Week Range

$495.24 - $392.47

-11.66% from high · +11.47% from low

Avg Daily Volume

810,643

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

24.52

Near market average

Forward P/E

22.22

Earnings expected to grow

PEG Ratio

2.27

Potentially overvalued

EV/EBITDA

18.73

EPS (TTM)

$17.69

Price to Sales

3.04

Beta

1.15

Similar volatility to market

How is DPZ valued relative to its earnings and growth?
Domino's Pizza Inc Common Stock trades at a P/E ratio of 24.52, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 22.22 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.27 indicates a premium valuation even accounting for growth.
What is DPZ's risk profile compared to the market?
With a beta of 1.15, Domino's Pizza Inc Common Stock is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility.

Performance & Growth

Profit Margin

12.20%

Operating Margin

18.10%

EBITDA

$989.06M

Return on Equity

0.00%

Return on Assets

34.00%

Revenue Growth (YoY)

3.10%

Earnings Growth (YoY)

30.10%

How profitable and efficient is DPZ's business model?
Domino's Pizza Inc Common Stock achieves a profit margin of 12.20%, meaning it retains $12.20 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 18.10% reveals how efficiently the company runs its core business operations before interest and taxes.0
What are DPZ's recent growth trends?
Domino's Pizza Inc Common Stock's revenue grew by 3.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 30.10% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against RESTAURANTS industry averages for proper context.

Dividend Information

Dividend Per Share

$6.73

Dividend Yield

1.61%

Ex-Dividend Date

Dec 15, 2025

Dividend Date

Dec 26, 2025

What dividend income can investors expect from DPZ?
Domino's Pizza Inc Common Stock offers a dividend yield of 1.61%, paying $6.73 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 15, 2025.
How reliable is DPZ's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Domino's Pizza Inc Common Stock pays $6.73 per share in dividends against earnings of $17.69 per share, resulting in a payout ratio of 38.04%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Dec 26, 2025.

Company Size & Market

Market Cap

$14.7B

Revenue (TTM)

$4.85B

Revenue/Share (TTM)

$141.87

Shares Outstanding

33.79M

Book Value/Share

-$112.88

Asset Type

Common Stock

What is DPZ's market capitalization and position?
Domino's Pizza Inc Common Stock has a market capitalization of $14.7B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 33.79M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RESTAURANTS industry, it competes with other firms in this sector.
How does DPZ's price compare to its book value?
Domino's Pizza Inc Common Stock's book value per share is -$112.88, while the current stock price is $437.50, resulting in a price-to-book (P/B) ratio of -3.88. Trading below book value can indicate the market perceives challenges ahead, or it might represent a value opportunity if the assets are quality and earnings can recover. Value investors often screen for P/B ratios below 1.0. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$496.65

13.52% upside potential

Analyst Recommendations

Strong Buy

1

Buy

19

Hold

12

Sell

1

Strong Sell

1

How reliable are analyst predictions for DPZ?
34 analysts cover DPZ with 59% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $496.65 implies 13.5% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on DPZ?
Current analyst recommendations:1 Strong Buy, 19 Buy, 12 Hold, 1 Sell, 1 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:23 AM

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Domino's Pizza Inc (DPZ) Stock Analysis 2025: Complete Investment Guide

When Russell Weiner succeeded longtime CEO Ritch Allison in 2022, skeptics questioned whether Domino's could maintain momentum after years of extraordinary performance under Patrick Doyle's digital transformation. Weiner's answer: double down on technology and international expansion. The company's proprietary ordering platform processes $46 billion in annual transactions, while loyalty program Piece of the Pie Rewards has 30 million active members providing customer data insights rivals can't match. For investors seeking durable competitive advantages in consumer discretionary, Domino's exemplifies asset-light, digitally-enabled business models generating superior returns on invested capital.

Business Model & Competitive Moat

Domino's generates revenue through franchise royalties (5.5% of sales), franchise fees ($25K-$35K per new store), supply chain distribution (selling ingredients/supplies to franchisees at cost-plus markup), and company-owned store sales. The 96% franchised model requires minimal capital while scaling rapidly—franchisees fund store buildouts (~$350K investment) while Domino's collects ongoing royalties. Domino's competitive moats include digital technology platform (proprietary ordering system creating switching costs), supply chain infrastructure (regional dough manufacturing facilities enabling consistent quality), brand recognition (decades of marketing creating customer preference), and franchise economics (unit-level returns of 35-40% attracting qualified franchisees). The fortressing strategy—opening stores in existing markets to reduce delivery times and capture market share—initially cannibalizes sales but ultimately expands total market by improving service speed.

Financial Performance

  • •Revenue: $4.5 billion in 2024, growing 6-8% annually through franchise expansion and same-store sales
  • •Profitability: Operating margin of 37% reflecting franchise royalty leverage with minimal variable costs
  • •Return on Capital: 35%+ ROIC driven by asset-light model and negative working capital
  • •Unit Economics: Average franchisee store generates $1.1M revenue with 20% cash-on-cash returns
  • •Valuation: 24x P/E justified by 12-15% EPS growth runway from unit expansion and digital innovation

Growth Catalysts

  • •International Expansion: Adding 800-900 net new international stores annually in emerging markets
  • •Delivery Innovation: Autonomous delivery pilots with Nuro, drone delivery testing expanding addressable occasions
  • •Digital Upsell: AI-powered menu personalization and predictive ordering increasing average ticket
  • •Ghost Kitchens: Small-format delivery-only locations reducing real estate costs in urban markets
  • •Loyalty Program Growth: Piece of the Pie Rewards driving repeat frequency and customer lifetime value

Risks & Challenges

  • •Labor Cost Inflation: Wage pressures and driver shortages compressing franchisee margins despite price increases
  • •Delivery Aggregator Competition: DoorDash, Uber Eats offering restaurant selection breadth Domino's can't match
  • •Commodity Volatility: Cheese prices (30% of COGS) creating margin unpredictability for franchisees
  • •International Execution Risk: Aggressive unit growth targets require maintaining franchisee unit economics
  • •Valuation Premium: 24x P/E leaves little room for disappointment if same-store sales decelerate

Competitive Landscape

Domino's competes in the fragmented pizza market against national chains (Pizza Hut, Papa John's, Little Caesars), regional players, and independent pizzerias, plus third-party delivery platforms aggregating restaurants. Domino's dominates delivery-focused pizza with 17% U.S. market share (second to Pizza Hut's 18%) but leads in digital capabilities and unit economics. Pizza Hut's dine-in legacy creates real estate burden Domino's avoids, while Papa John's smaller footprint lacks procurement scale. The real competitive threat: DoorDash and Uber Eats expanding restaurant selection from pizza-only to any cuisine. Domino's defends through superior delivery economics (captive fleet vs. third-party drivers) and proprietary technology, though younger consumers increasingly value variety over speed. International markets face different dynamics—Domino's is #1 pizza brand globally but competes against local favorites and QSR giants like McDonald's for delivery occasions.

Who Is This Stock Suitable For?

Perfect For

  • ✓Growth investors seeking consumer discretionary exposure with proven management execution
  • ✓Quality-focused portfolios prioritizing high ROIC (35%+) and capital-light business models
  • ✓Long-term compounders betting on 10+ years of unit expansion runway (21K to 30K+ stores)
  • ✓Franchise model specialists understanding royalty economics and asset-light scaling

Less Suitable For

  • ✗Value investors requiring P/E below 20x (trades at premium to market despite growth)
  • ✗High-yield dividend seekers (1.66% yield below broader market)
  • ✗Recession hedging portfolios (discretionary spending vulnerable during economic weakness)
  • ✗ESG investors concerned about fast food health/sustainability impacts

Investment Thesis

Domino's Pizza merits a BUY rating for quality growth investors accepting premium valuation in exchange for durable competitive advantages. The company's 96% franchised model generates exceptional returns on capital (35%+ ROIC) while unit expansion provides visible 10-year growth runway. Russell Weiner's technology focus—AI-powered ordering, autonomous delivery pilots, enhanced loyalty program—positions Domino's to maintain digital leadership as delivery aggregators commoditize restaurant delivery. The 24x P/E appears reasonable given 12-15% EPS growth potential from 1,100+ annual unit additions plus 3-5% same-store sales growth. Near-term risks include labor inflation pressuring franchisee margins and delivery competition, but Domino's captive fleet economics provide structural advantage versus third-party platforms. This is a core consumer discretionary holding offering growth without excessive risk, appropriate for 3-5% portfolio allocation.

Conclusion

Position Domino's as 3-5% allocation in growth or consumer discretionary portfolios. The stock typically trades at 22-26x P/E, making current 24x valuation fair but not cheap. Consider accumulating below 21x P/E when consumer discretionary faces selling pressure, maintaining through international expansion execution, and trimming above 28x P/E. The combination of unit growth visibility (clear path to 30K+ global stores), franchise model resilience, and technology differentiation creates favorable long-term compounding despite premium valuation. Russell Weiner's leadership continuity reduces execution risk.
Bull Case
$620 (25% upside)
Base Case
$540 (9% upside)
Bear Case
$420 (15% downside)

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