Benchmark has maintained its Buy recommendation on Domino's Pizza shares and left its target price unchanged at $540.00 following the pizza chain's fourth-quarter fiscal 2025 financial report.
Domino's posted revenue of $1.54 billion for the quarter, ahead of the consensus expectation of $1.52 billion. Adjusted EBITDA came in at $323 million, topping the $320 million analysts had projected. Over the last twelve months the company reported $4.85 billion in revenue and $989 million in EBITDA, figures that underpin its $13.31 billion market capitalization.
Earnings per share were $5.35, a hair below the consensus forecast of $5.38. Management disclosed approximately $0.25 per share in losses attributable to mark-to-market accounting related to its holding in DPC Dash Ltd. The stock was trading at $394 and remains close to its 52-week low of $370.70; InvestingPro data cited in the report indicates the shares are trading near a Fair Value estimate of $398.91.
Same-store sales, revenue, and adjusted EBITDA each exceeded expectations for the quarter, with the results released this morning. U.S. same-store sales rose 3.7% in the fourth quarter, slightly above analyst projections of 3.47% growth. The company attributed the outperformance in part to value-oriented promotions and the introduction of new menu items.
Benchmark analyst Todd Brooks retained the firm's positive view on Domino's following the quarterly release. InvestingPro commentary highlighted a dozen consecutive years of dividend increases for the company and noted the shares trade near their 52-week low. The InvestingPro material also flagged that eight analysts have revised earnings estimates downward for the upcoming period and that subscribers can access six additional ProTips and a detailed Pro Research Report on DPZ within the platform's coverage universe of more than 1,400 U.S. equities.
Several other brokerages have updated their stances on the stock in recent days. Morgan Stanley downgraded Domino's to Equalweight, citing concerns about the pizza industry and the company's growth outlook. Stifel trimmed its price target to $485.00 while keeping a Buy rating. Bernstein reiterated a Market Perform rating with a $490.00 price target and commented that Domino's could capture share by exploiting scale advantages and pursuing a more aggressive value strategy.
Corporate leadership changes were also announced: Domino's Pizza Enterprises has appointed Andrew Gregory, a long-tenured executive from McDonald's Corp., as its global CEO, with his start date set for no later than August 5.
The report further references an InvestingPro Fair Value tool, noting that users can evaluate whether a stock is undervalued. The tool is described as using a combination of 17 valuation models to generate its Fair Value outputs and covers thousands of equities.
Contextual note - The combination of a revenue and adjusted EBITDA beat alongside a modest EPS miss and a non-cash accounting loss presents a mixed earnings picture that has prompted differing responses from analysts and brokerages.