Core Insights - Berkshire Hathaway has recently invested in Domino's Pizza, indicating potential for market-beating returns despite the competitive nature of the pizza industry [2][12] - Domino's has achieved over 6,500% in stock gains and dividends since its IPO in 2004, suggesting significant upside potential remains [3][12] Investment Rationale - Berkshire began acquiring Domino's shares in Q3 2024, increasing its position to over 2.6 million shares, representing approximately 7.75% of outstanding shares [5] - Domino's is the largest pizza chain globally, with 21,750 locations, which provides a competitive edge despite low barriers to entry in the pizza business [6] Competitive Advantages - The franchise model allows Domino's to expand with minimal capital while leveraging strong brand recognition [7] - A digital-first approach enhances customer ordering experience and optimizes delivery efficiency, supported by a robust supply chain that ensures consistent food quality [8] Financial Performance - For the first nine months of fiscal 2025, Domino's reported revenue of $3.4 billion, a 4% increase, while free cash flow surged 32% to $496 million [9] - The free cash flow comfortably covered $119 million in dividend costs, with a dividend yield of 1.6%, above the S&P 500 average of 1.2% [10] Valuation Metrics - Domino's P/E ratio stands at 25, below its five-year average of 30, indicating the stock is reasonably priced [11] - The consistent performance and dividend history suggest a stable investment opportunity for potential buyers [10][13]

Domino's Pizza Inc. (DPZ) generated strong free cash flow (FCF) during Q3, and its FCF margins held up. DPZ stock still looks undervalued, and its target price is 19% higher at $498 per share. Shorting out-of-the-money puts and buying in-the-money calls are good ways to play this. DPZ is at $418.39 in morning trading on Friday, Oct. 17. This is near its recent lows before its Oct. 14 release of Q3 earnings results. More News from Barchart DPZ stock - last 6 months - Barchart - Oct. 17, 2025 However, a c ...

Accessibility StatementSkip Navigation Customers can purchase the St. Jude Giving Combo, add a donation or round up their total to support the St. Jude Thanks and Giving campaign ANN ARBOR, Mich., Oct. 16, 2025 /PRNewswire/ --Â Domino's Pizza Inc. (Nasdaq: DPZ) has been a proud supporter of St. Jude Children's Research Hospital since 2004. For the 22nd consecutive year, franchise and corporate-owned stores across the U.S. are raising "dough" for the kids at St. Jude. Now through Jan. 4, 2026, Domino's custo ...

We recently published Top 10 Trending Stock Ratings and Calls as Tom Lee Says Latest Selloff is a Buying Opportunity. Domino's Pizza Inc (NASDAQ:DPZ) is one of the top trending stock ratings and calls. Andrew Charles, TD Cowen analyst, said in a program earlier this month on CNBC that he likes DPZ. Here is what the analyst said:   “We also like Domino’s Pizza, as we believe they are poised for a strong quarter and a better outlook for 2026 than investors currently expect.”   Photo by Ewan Buck on Un ...

Core Viewpoint - RBC Capital has adjusted its rating for Domino's Pizza to "Sector Perform" while maintaining a "hold" action, with a revised price target of $450, down from $500, despite strong third-quarter performance [1][6] Financial Performance - Domino's Pizza has exceeded investor expectations in its third-quarter report, indicating a growth outlook with potential stock price increases of 20% this year and possibly 100% or more in the long term [2] - The company reported a 5.2% increase in same-store U.S. sales, attributed to the success of its Best Deals Ever program, but projects a more cautious 3% growth in comparable sales for the year due to macroeconomic pressures [5] Capital Returns Strategy - The company is focusing on aggressive capital returns, including a dividend distribution that annualizes to 1.7% and share buybacks that have reduced the share count by an average of 2.6% over the past year, with expectations for continued buybacks in the fourth fiscal quarter and the following fiscal year [3][6] Valuation Metrics - Before the report, Domino's was trading at approximately 24 times its current-year earnings forecast, reflecting significant growth expectations, and is currently trading at a 23x forward price-to-free-cash-flow valuation [4] Debt Levels - Despite positive developments, Domino's faces challenges with high debt levels, which long-term investors should monitor closely [4][6]

Core Insights - Domino's Pizza Inc. has maintained its full-year 2025 guidance after reporting third-quarter earnings and sales that exceeded expectations, driven by successful promotional campaigns and expanding margins [1] Financial Performance - TD Cowen analysts have maintained a Buy rating but adjusted the price forecast from $510 to $500, reflecting a balanced view on the company's commitment to achieving over 3% same-store sales (SSS) in 2026 while acknowledging a general softening of fourth-quarter trends [2] - U.S. same-store sales grew by 5.2% in the third quarter, primarily driven by increased traffic, with carry-out SSS rising by 8.3% and delivery increasing by 2.5% [3][8] - TD Cowen's financial model projects 2025 revenue of $4,921.9 million, a slight decrease from the previous estimate of $4,938.3 million, and forecasts 2026 revenues of $5,174.4 million, down from $5,193.3 million [5] - BTIG analysts reiterated their Buy rating with a $530 price forecast, anticipating continued market share gains and positive comparable store sales despite broader consumer weakness [7] Earnings Estimates - TD Cowen raised its 2025 EPS forecast to $17.45 from $17.35 and its 2026 EPS estimate to $19.49 from $19.39 [6] - BTIG has modestly raised its fiscal year 2025 EPS estimate to $17.47 from $17.38 and its fiscal year 2026 EPS forecast to $19.25 from $18.93 [11] Market Trends - BTIG anticipates that domestic comparable store sales for the fourth quarter may be slightly lower than the third quarter, potentially resulting in a modest miss against targets [9] - The firm estimates that GLP-1 drug usage may be reducing industry sales by 50-100 basis points this year, particularly among lower-income consumers [10]

Domino's Pizza TodayDPZDomino's Pizza$424.23 +15.97 (+3.91%) 52-Week Range$397.12▼$500.55Dividend Yield1.64%P/E Ratio24.64Price Target$492.00Add to WatchlistDomino’s Pizza NASDAQ: DPZ delivered what investors wanted in Q3, sending its stock price into a reversal that could add 20% to the stock price this year and 100% or more over the long term. Investors wanted a better-than-expected report that affirmed the company’s growth outlook, valuation, and capacity for aggressive capital returns.  Aggressive capi ...

Earnings Overview - The third quarter earnings season has commenced with major Wall Street banks reporting results, with analysts expecting a 7.9% increase in earnings per share for S&P 500 companies, marking the ninth consecutive quarter of positive earnings growth but a slowdown from the 12% growth in Q2 [1][21][22] Major Bank Results - JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, and BlackRock are among the first to report their earnings, with additional reports from Bank of America, Morgan Stanley, and others following [2][3] - Citigroup's Q3 results showed a 17% increase in dealmaking fees, with total revenue growing by 9% to $22.1 billion and net income rising to $3.8 billion, or $1.86 per diluted share [9][10] - Wells Fargo reported results that exceeded analysts' expectations, leading to a stock increase of over 2% in premarket trading [16] Sector Highlights - Bank of America noted strong fee improvements in Q3, contributing to overall profitability [5] - ASML's orders exceeded estimates due to an AI investment boom, although it warned of a significant drop in Chinese demand next year [7] - Johnson & Johnson raised its 2025 sales forecast by approximately $300 million, reporting adjusted earnings per share of $2.80, surpassing estimates [12][14] Market Trends - The earnings season is expected to show that most S&P 500 companies will likely report earnings that exceed estimates, with a potential actual growth rate of 13% anticipated [21][22][23] - The performance of major banks is closely tied to market conditions, with concerns about a potential market pullback impacting future earnings [15]

Earnings Overview - The third quarter earnings season has commenced with major Wall Street banks reporting results, with analysts expecting a 7.9% increase in earnings per share for S&P 500 companies, marking the ninth consecutive quarter of positive growth but a slowdown from 12% in Q2 [1][28] - Major financial institutions including JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, and BlackRock are among the first to report their earnings [2][3] Company-Specific Highlights - Morgan Stanley reported a 45% surge in profits, driven by a 44% increase in dealmaking fees to $2.1 billion and a 24% rise in trading fees, totaling $6.28 billion [4][6][7] - Abbott's shares fell 1% after reporting diluted earnings per share of $0.94, below the expected $1.04, with revenue of $11.3 billion aligning with estimates [8][9] - Citigroup's net income rose to $3.8 billion, or $1.86 per diluted share, on revenue of $22.1 billion, reflecting a 9% increase in total revenue [13][14] - Johnson & Johnson announced plans to spin off its orthopedics unit while reporting adjusted earnings per share of $2.80, exceeding estimates of $2.76, and raised its 2025 sales forecast by approximately $300 million [18][19][20] - Domino's Pizza saw a nearly 5% increase in stock after reporting a 5.2% acceleration in US same-store sales, with earnings per share of $4.08 surpassing estimates [15][16] Market Trends - The earnings season is characterized by a boom in dealmaking and trading, significantly benefiting banks like Morgan Stanley and Citigroup [10][13] - ASML reported orders exceeding estimates due to an AI investment boom, although it warned of a significant drop in Chinese demand next year [12] - LVMH experienced a surprising return to sales growth, with shares rising as much as 14%, indicating a potential easing in luxury demand decline [11]

Here’s how one company took advantage of the domino effect in real time: Trade wars and economic uncertainty triggered a consumer pullback, a consumer pullback triggered fast-food industry competition on price, competition on price is triggering an overhaul of Domino’s discounts and deals, and Domino’s discounts and deals are leading to more customers. In its third-quarter earnings report on Tuesday, Domino’s Pizza announced stellar results, with revenue rising more than 6% year-over-year and same-store s ...