Core Viewpoint - Domino's Pizza, Inc. is recognized as one of the best food stocks to buy in 2026, despite facing challenges in the fast food industry during 2025 [1] Analyst Ratings - Evercore ISI analyst David Palmer maintained an Outperform rating on Domino's Pizza, Inc. while lowering the price target from $510 to $490, citing optimism for fiscal stimulus and global expansion in 2026 [2] - Stifel analyst Chris O'Cull also reduced the price target from $510 to $485 but kept a Buy rating, indicating a challenging operating environment for the restaurant business in 2026 due to structural factors [3] Stock Performance - As of January 9, 2026, Domino's Pizza, Inc. stock has decreased by 2.97% year-to-date [4] Company Overview - Domino's Pizza, Inc. operates over 21,500 outlets globally across more than 90 international markets as of the end of Q2 2025 [4]

Core Insights - Domino's Pizza, Inc. (DPZ) has shown a significant shift in its U.S. sales mix for Q3 2025, with both delivery and carryout experiencing growth simultaneously, indicating a potential transition into a more balanced growth phase [1] Group 1: Sales Performance - Carryout has been a standout performer, with comparable sales increasing significantly due to value-led promotions, menu innovations like Parmesan Stuffed Crust, and a revamped loyalty program, driving customer traffic and frequency [2] - The growth in carryout is largely incremental, suggesting that it is gaining market share without cannibalizing delivery sales, which is crucial for maintaining higher-margin channels [2] - Delivery has also returned to positive growth, supported by value initiatives and early success with aggregator partnerships like DoorDash, showcasing Domino's ability to grow delivery profitably in a competitive market [3] Group 2: Financial Health - The balance between delivery and carryout has resulted in healthier order counts and modest ticket growth, contributing to a more resilient comparable sales algorithm [4] - Although carryout typically has a lower average ticket, the growth in delivery, higher-priced innovations, and increased frequency have helped maintain overall economic stability for the company [4] Group 3: Future Outlook - Management anticipates that the balance between delivery and carryout will continue into 2026, with ongoing initiatives in value, loyalty, digital platforms, and aggregator partnerships compounding over time [5] - If both channels can sustain growth together, Domino's may enter a more durable demand phase, reducing reliance on any single growth lever and positioning itself better in a challenging consumer environment [5] Group 4: Competitive Landscape - Compared to Yum! Brands, Inc. (YUM) and Papa John's International, Inc. (PZZA), Domino's ability to grow both delivery and carryout simultaneously while protecting franchise economics highlights a more balanced and defensible growth model [6][8] - Yum! Brands has historically focused more on delivery, which has increased exposure to aggregator fees and promotional pressures, while Pizza Hut's carryout performance has been inconsistent [7] - Papa John's has made strides in carryout through value bundles and loyalty efforts, but its delivery growth has been uneven, constrained by a premium pricing strategy [8] Group 5: Valuation Metrics - Domino's shares have declined by 11.8% over the past six months, compared to a 3.5% decline in the industry [9] - The forward 12-month price-to-earnings ratio for DPZ is currently at 20.74, down from the industry's 24.47, indicating a relative valuation advantage [13] - Recent consensus estimates for DPZ's 2026 earnings per share have decreased slightly, reflecting a cautious outlook [14]

Group 1 - The U.S. State Department has urged American citizens to leave Iran immediately, indicating heightened tensions in the region [1] - The "Pentagon Pizza Index" has surged, with Domino's Pizza orders increasing by 1000% and Extreme Pizza orders rising by 213%, suggesting significant military activity [1] - The origin of the "Pentagon Pizza Index" dates back to the Cold War, where unusual late-night pizza orders were interpreted as signs of military escalation [1]

Group 1 - The core announcement is the appointment of Merrill Pereyra as the new CEO for the Australia and New Zealand region of Domino's Pizza, which led to a significant stock price increase of 6.8% following the news [1] - Pereyra has over 30 years of experience in the fast-food industry, previously serving as the Managing Director of Pizza Hut India and holding positions at McDonald's and as CEO of Domino's Indonesia [1] - The company’s Executive Chairman, Jack Cowin, expressed confidence in Pereyra's ability to enhance franchise relationships, drive same-store sales growth, and optimize profitability for network expansion [1] Group 2 - Prior to this announcement, Domino's stock had declined by 22% over the past 12 months, facing challenges such as slowing sales growth, management instability, and competition from new entrants like Guzman y Gomez Ltd. [1] - The search for a new Group CEO is ongoing after Mark van Dyck resigned from the position in July, having served for less than a year [2]

Core Insights - The article emphasizes the expertise of a seasoned equity analyst who specializes in the U.S. restaurant industry, covering various segments from quick-service to fine dining [1] - The analyst employs advanced financial modeling and sector-specific KPIs to identify hidden value in public equities, particularly focusing on micro and small-cap companies often overlooked by mainstream analysts [1] Industry Focus - The research firm, Goulart's Restaurant Stocks, is dedicated to thematic research and valuation efforts within the restaurant sector, indicating a strong commitment to uncovering investment opportunities [1] - The analyst also covers related sectors such as consumer discretionary, food & beverage, and casinos & gaming, showcasing a broad understanding of interconnected industries [1] Academic and Professional Background - The analyst holds an MBA in Controllership and Accounting Forensics, along with a Bachelor's in Business Administration, which provides a solid academic foundation for the research conducted [1] - Specialized training in valuation, financial modeling, and restaurant operations enhances the analyst's ability to provide insightful analysis and recommendations [1]

Group 1 - Domino's Pizza, Inc. (NASDAQ:DPZ) has received a downgrade from TD Cowen from "Buy" to "Hold," with a reduced price target of $460 from $500, reflecting a strategic shift towards value offerings [2] - The company reported strong same-store sales growth, with U.S. comps up 3.40% in Q2 2025 and accelerating to 5.20% in Q3 2025, while international comps were up 2.40% and 1.70% respectively [2] - Bernstein maintains a positive long-term outlook for Domino's, reiterating a price target of $490, citing management's confidence in value initiatives and the expected launch of a new value program in 2026 [3] Group 2 - The focus on lower price-point offerings by Domino's may impact margins and earnings potential compared to previous expectations, leading to a balanced risk-reward view from analysts [2] - Key catalysts for future growth include the full rollout of DoorDash and gains from the ongoing loyalty program, which are expected to support U.S. comparable sales into 2026 [3]

Core Viewpoint - Domino's Pizza (NYSE: DPZ) experienced a slight decline of 0.4% in its stock price for the year 2025, contrasting with the performance of peers such as Yum! [1] Group 1 - The stock performance of Domino's Pizza indicates a challenging market environment for the company [1] - Comparatively, peers like Yum! have shown different performance trends, suggesting varying competitive dynamics within the industry [1]

Group 1 - Top Wall Street analysts have revised their outlook on several prominent companies, indicating a shift in market sentiment [1] - The article suggests that investors consider buying ADBE stock, highlighting the positive perspective from analysts [1]

Group 1 - The stock selection process showed positive momentum in December, with an average gain of 0.83% for the selected 15 stocks [1] - The SPDR® S&P 500® ETF was mentioned as a benchmark for performance comparison [1] Group 2 - The analyst holds long positions in various companies, including ZTS, MSCI, DPZ, and others, through stock ownership, options, or derivatives [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company mentioned [2]

Core Insights - Domino's Pizza (DPZ) is leveraging its "Hungry for MORE" strategy to enhance sales and profitability through menu innovation, marketing initiatives, and international expansion [2][9] - The company has experienced a 2.1% decline in shares over the past three months, contrasting with a 1.3% increase in the Zacks Retail - Restaurants industry [3] - Earnings estimates for 2025 remain stable at $17.57 per share, despite challenges from elevated costs and a tough macroeconomic environment [4] Growth Drivers - **Brand Image & Franchising Strategy**: Domino's is recognized as one of the fastest-growing QSR pizza brands in the U.S. and globally, supported by strong franchisee economics and a significant advertising budget [5][6] - **International Expansion**: In Q3 2025, international retail sales rose by 6% year-over-year, with plans for approximately 250 new store openings in India and around 300 in China [7][10] - **Menu Innovation**: The successful launch of new products, such as Parmesan Stuffed Crust Pizza and new Bread Bites flavors, reflects the effectiveness of the company's innovation strategy [11][12] - **Partnership with Delivery Channels**: The full rollout of the DoorDash partnership and existing relationships with platforms like Uber Eats are expected to enhance U.S. comparable sales [13] Challenges - **Macroeconomic Pressure**: The company faces a challenging macroeconomic environment and increased competition, which may pressure U.S. comparable sales and constrain performance towards the lower end of its 3% guidance [14]