BTIG has reaffirmed its Buy rating on Domino's Pizza shares and left its price target unchanged at $500 in the wake of the pizza chain's recent earnings disclosure. The brokerage maintained its Top Pick distinction for the stock, pointing to a combination of favorable sales metrics and market-share momentum.
On key valuation metrics, Domino's is trading at a price-to-earnings ratio of 23.23 and carries a market capitalization of $13.53 billion. InvestingPro notes that the company shows a high P/E relative to near-term earnings growth, with a PEG ratio of 4.24.
BTIG highlighted several operational positives from the report: U.S. same-store sales rose 3.0%, a result that matched the company's internal target and outpaced analyst expectations. The firm recorded encouraging order counts, documented market share gains and observed sales growth across all income cohorts. Based on these data points, BTIG argued the shares should trade closer to their average P/E multiple rather than remaining below the ten-year trough.
BTIG also pointed to Domino's current value proposition, ongoing menu innovation and comparative weakness among competitors as factors that should help sustain the present comparable-sales trajectory. The brokerage projects double-digit earnings growth in the periods ahead, although it did not change its stated price target.
The company reported its fourth-quarter fiscal 2025 results that contained several beats versus consensus. Revenue came in at $1.54 billion versus an expected $1.52 billion, and adjusted EBITDA reached $323 million compared with the $320 million analysts anticipated. For the quarter, U.S. same-store sales rose 3.7%, above the 3.47% estimate, with the company attributing the outperformance to value-driven promotions and new menu initiatives.
In corporate leadership news, Domino's Pizza Enterprises Ltd. has named Andrew Gregory, a long-time executive from McDonald’s Corp., as its new global chief executive officer.
Analyst reactions beyond BTIG were mixed. Morgan Stanley downgraded Domino's from Overweight to Equalweight, citing concerns about the pizza segment and the company's future growth trajectory. Stifel retained its Buy rating but trimmed its price target to $485.00, pointing to industry headwinds and potential shifts in food consumption patterns associated with GLP-1 medications. By contrast, Benchmark reiterated a Buy rating and set a $540.00 price target after the quarter's stronger results.
InvestingPro’s Fair Value analysis referenced in commentary indicates the stock is fairly valued at current levels. Investors seeking deeper research access can obtain a comprehensive Pro Research Report covering Domino's alongside over 1,400 other U.S. equities.
Domino's operates pizza delivery and carryout restaurants across the United States and international markets. The earnings update and subsequent analyst actions show a mixture of confidence in near-term sales momentum and caution around valuation and longer-term demand trends.