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Boasting a market cap of $14.7 billion, Domino's Pizza, Inc. (DPZ) is a global leader in the pizza delivery and quick-service restaurant industry. Headquartered in Ann Arbor, Michigan, the company offers a diverse menu of innovative products and solutions to serve key markets, including residential, corporate, and on-the-go consumers.
Companies valued at over $10 billion are often categorized as “large-cap stocks,” a distinction Domino’s Pizza exemplifies through its strong market presence. Domino’s Pizza's commitment to innovation in food delivery, leveraging technology to enhance customer convenience, and maintaining a consistent focus on quality and service underscores its resilience, adaptability, and capacity to thrive in the competitive and ever-evolving global quick-service restaurant industry.
Domino's Pizza's shares are down 21.5% from their 52-week high of $542.75, achieved on Apr. 30. Over the past three months, the stock has gained 2.8%, outperforming the broader Dow Jones Industrials Average’s ($DOWI) 1.9% gains over the same time frame.
Over the past 52 weeks, DPZ stock rose 5.7%, but it has declined by 18.8% over the past six months, significantly underperforming the Dow, which gained 9.5% in the last six months and delivered a 15.5% return over the past year.
In recent sessions, DPZ has exhibited bearish momentum, trading below its 50-day and 200-day moving averages.
Domino's Pizza saw a 15.1% rally in November, fueled by Berkshire Hathaway's newly disclosed stake and positive analyst upgrades, reflecting strong same-store sales expectations and the company's strategic initiatives.
Shares of Domino's Pizza dropped 1.1% on Oct. 10 after the company reported its Q3 earnings results. Revenue increased 5.1% year over year to $1.08 billion, missing market expectations by 1.6%. However, Domino's posted a profit of $4.19 per share, beating estimates by 15.2%. Despite strong profitability, the company lowered its global retail sales growth guidance to 6%, falling short of the anticipated 7%.
DPZ’s rival, Papa John's International, Inc. (PZZA), has had a rough ride. PZZA stock plummeted 46.4% over the past 52 weeks, trailing behind DPZ’s gains over the same time frame.
Following its recent outperformance, analysts hold a cautiously optimistic outlook on Domino's Pizza. The stock has a consensus "Moderate Buy" rating from 29 analysts, with a mean price target of 485.40, which indicates a potential upside of 13.9% from its current level.
