Source: Gordon Thompson
UBS Projects a Bullish Future for Domino’s Pizza Inc
Dennis Geiger from UBS has set a price target of $540 for Domino’s Pizza Inc. (NASDAQ:DPZ), suggesting a potential price increase of approximately 13.27% from its current price of $476.72. This optimistic outlook comes despite a mixed financial performance from Domino’s in the second quarter of 2025.
Domino’s Pizza Inc. is a leading player in the global quick-service restaurant (QSR) category, specializing in pizza delivery and carryout services. The company is recognized for its innovative approach to pizza delivery, helping it establish a strong market presence. Domino’s competes with other major pizza chains like Pizza Hut and Papa John’s, leveraging its extensive network and technological advancements to maintain its market position.
Financial Performance of Domino’s in Q2 2025
On July 22, 2025, Domino’s reported its Q2 results, revealing a revenue of $1.15 billion, which slightly surpassed the analyst consensus of $1.14 billion. However, the company’s earnings per share (EPS) of $3.81 fell slightly short of the expected $3.93. Despite this miss, the company’s overall financial performance remains strong, as the revenue growth signifies a solid market presence and robust sales.
Factors Bolstering Domino’s Market Position
Despite the slight earnings miss, Domino’s CEO Russell Weiner highlighted the company’s growth in delivery and carryout services in the U.S., which contributed to significant market share gains. The integration with the two largest aggregators and the introduction of a comprehensive range of crust types, including stuffed crust, have bolstered Domino’s competitive edge.
The company’s robust unit economics, the largest advertising budget in the sector, and a strong supply chain have further supported its future prospects. The strategic initiatives taken by Domino’s have proven successful in maintaining its market position amidst the intense competition in the QSR category.
Domino’s Stock Performance Post Q2 Results
Following the earnings announcement, Domino’s shares experienced a slight decline of 0.8%, closing at $462.24. However, the stock has since rebounded, with the current price at $478.08, reflecting an increase of 3.43% or $15.84. The stock has traded between $458.17 and $479.02 today, with a market capitalization of approximately $16.23 billion. The trading volume for DPZ is 504,052 shares on the NASDAQ exchange.
Outlook for Domino’s
Domino’s reported second-quarter U.S. same-store sales that exceeded analysts’ expectations, driven by new menu items and promotions. This positive performance led to a rise in Domino’s shares by approximately 5% in early trading, despite ongoing macroeconomic uncertainties. The company’s strategic initiatives and strong market position continue to attract investor interest, as highlighted by UBS’s price target.
With the continued growth in delivery and carryout services and successful integration with aggregators, Domino’s is well-positioned for future growth. The company’s innovative approach to pizza delivery, coupled with its extensive network and strong supply chain, are key factors that are likely to drive its growth in the coming years. As such, the UBS’s bullish price target for Domino’s stock reaffirms investor confidence in the company’s growth potential, signaling a promising future for the pizza giant.