"Analysts maintain a bullish stance on DPZ heading into 2026. The consensus 12-month price target sits at $495, implying 20% upside from current levels. Wall Street expects forward earnings growth to continue, with the stock trading at 22x forward earnings compared to 24x trailing. Among 34 analysts covering the stock, 20 rate it Buy or Strong Buy, with just two Sell ratings."
"Annual EPS has climbed from $12.08 in 2022 to $16.69 in 2024, with 2025 on pace to exceed $17. Revenue growth of 3.1% in Q3 may look modest, but profitability tells the story. Operating margin hit 18.1% in the quarter, with net margin at 12.2%. Those figures outpace both Yum! Brands (17.9% net margin) and Chipotle (13.0% net margin). Return on assets of 34% reflects the efficiency of Domino's asset-light franchise model."
"At $411, DPZ trades at 24x trailing earnings. Hitting $550 would require a 34% gain, pushing the multiple to roughly 32x trailing earnings. Chipotle trades at 33x trailing earnings despite slower earnings growth of just 2.2% year-over-year. Yum! Brands commands 29x earnings with operating margins of 34.4%. If Domino's maintains its 30% earnings growth rate from Q3 2025 into 2026, actual EPS could reach $22 by year-end 2026. At that level, $550 would represent just 25x"
Domino's shares closed 2025 down 0.4% and trade near a 52-week low at $411 despite strong profitability. Wall Street's consensus 12-month price target is $495, implying about 20% upside, with 20 of 34 analysts rating Buy or Strong Buy. Domino's beat earnings in seven of eight quarters, with annual EPS rising from $12.08 in 2022 to $16.69 in 2024 and 2025 pacing above $17. Q3 operating margin reached 18.1% and net margin 12.2%, outpacing peers; return on assets was 34%. Reaching $550 would require multiple expansion to roughly 32x or EPS rising toward $22.
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