Domino’s Gets Slew Of Price-Target Cuts After Q3 Report — A Look At Wall Street’s Latest View On DPZ Stock

According to The Fly, Bernstein said traffic growth was not translating into meaningful sales or franchisee profit growth, while BofA Securities cited slower unit growth and reduced visibility into franchisee profit recovery.

• Morgan Stanley reduced its price target to $345 from $357, maintaining ‘Equal Weight’rating, and said Q4 could bring sequential improvement in U.S. performance.
• BofA Securities lowered its price target to $410 from $455 but maintained ‘Buy’rating, despite slightly raising its FY26 estimates after Q3 outperformance.
• Citi cut its price target to $308 from $335, maintaining ‘Neutral’ rating.

Shares of Domino’s Pizza (DPZ) drew investor attention on Wednesday after four brokerages lowered their price targets following the company’s third-quarter results.

According to The Fly, Bernstein lowered its price target on Domino’s Pizza to $340 from $390 while maintaining a ‘Market Perform’ rating. The firm said the company’s third-quarter (Q3) results left the “core investor debate unresolved,” as traffic is growing but not translating into meaningful sales or franchisee profit growth. Bernstein added that expectations had been lowered, but likely not enough.

Although Bernstein noted that the stock appeared attractive and described the company’s effort to reduce leverage to less than four times as sensible, the firm believes investors will remain on the sidelines until U.S. comparable sales return to low-single-digit growth and the business is reset to a lower, more achievable bar.

DPZ shares traded marginally lower on Wednesday at the time of writing, after falling 4.76% in the previous session.

BofA Raises Estimates But Lowers Its Price Target

According to The Fly, BofA Securities lowered its price target on the stock to $410 from $455 while maintaining a ‘Buy’ rating. The firm slightly raised its FY26 estimates following Q3 outperformance, reflecting stronger second-half pricing and supply chain performance.

However, BofA applied a lower valuation multiple to reflect slower unit growth and reduced visibility into franchisee profit recovery.

Morgan Stanley Sees No Clear Inflection

According to The Fly, Morgan Stanley lowered its price target to $345 from $357 while maintaining an ‘Equal Weight’ rating on the stock. The firm said the fourth quarter (Q4) could show sequential improvement in U.S. performance, but it did not see a broader inflection for the business yet, noting that “there are still some things to figure out here."

Citi lowered its price target to $308 from $335, while maintaining a ‘Neutral’ rating, according to The Fly. 

Domino’s Q3 Earnings Highlights

Domino’s reported third-quarter revenue of $1.186 billion, up 3.4% year over year and above Fiscal AI’s $1.17 billion estimate. Diluted EPS rose to $4.60 from $4.08 a year earlier, beating the $4.38 estimate.

Domino’s reported net income of $152.2 million, up 9.2% year over year, while operating income increased 8.3% to $241.8 million, primarily reflecting higher franchise royalties and fees, as well as growth in supply-chain gross-margin dollars.

Domino’s reported U.S. same-store sales growth of 0.3%, down from 5.2% a year earlier, while international same-store sales rose 0.2%. The company added 175 net stores during the quarter, bringing its global footprint to 22,706 locations.

How Retail Views DPZ

Retail sentiment on Stocktwits remained in ‘Bullish’ territory, with message volume at ‘High’ levels over the past 24 hours.

DPZ shares have dropped over 30% year-to-date.