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Valued at a market cap of $15.8 billion, Ann Arbor, Michigan-based Domino's Pizza, Inc. (DPZ) is a leading player in the Quick-Service Restaurant (QSR) pizza category. The company operates through three segments - U.S. Stores, International Franchise, and Supply Chain, offering its products through both company-owned and franchised locations.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Domino's Pizza fits this criterion perfectly. In addition to its signature pizzas, Domino's serves a variety of menu items, including bread products, chicken wings, pasta, sandwiches, dips, desserts, and soft drinks.
However, the pizza chain company pulled back 15.3% from its 52-week high of $542.75. Shares of Domino's Pizza have risen 6.2% over the past three months, outpacing the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 12.4% decrease over the same time frame.
Longer term, DPZ stock is up 9.5% on a YTD basis, outperforming XLY’s 8.8% decline. Nevertheless, shares of Domino's Pizza have declined 4.8% over the past 52 weeks, lagging behind XLY’s 12.2% return over the same time frame.
Since late January, DPZ stock has been trading mostly above its 50-day and 200-day moving averages.
Shares of Domino’s Pizza fell 1.5% on Feb. 24 after the company’s Q4 2024 results missed analysts’ expectations on both revenue and earnings. EPS came in at $4.89, up 9.2% year-over-year but missing the estimate, while revenue rose 2.9% to $1.4 billion, falling short of the forecast. Despite strong metrics like a 31st consecutive year of international same-store sales growth and nearly 800 net new store openings, management flagged consumer spending headwinds and emphasized a shift in 2025 strategy toward market share gains over aggressive growth.
However, in comparison, rival McDonald's Corporation (MCD) has lagged behind Domino's Pizza. Shares of McDonald's have gained 11.9% over the past 52 weeks and 7.5% on a YTD basis.
Despite DPZ’s outperformance on a YTD basis, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 29 analysts covering the stock, and as of writing, it is trading below the mean price target of $491.27.
