Is Domino's Pizza Stock Underperforming the Nasdaq?

Core Insights - Domino's Pizza, Inc. (DPZ) is the largest global pizza operator with a market cap of nearly $14.2 billion, managing over 21,000 stores in more than 90 international markets [1] Stock Performance - DPZ's stock is currently trading 13.4% below its March high of $500.55 and has declined almost 5% over the last three months, while the Nasdaq Composite has gained 7% [2] - Over the past 52 weeks, DPZ stock has decreased by 5.2% and has only gained 3.3% year-to-date, significantly underperforming the Nasdaq's respective gains of 17.8% and 22.2% [4] - Since mid-September, DPZ has traded below its 50-day moving average of $413.57 and its 200-day moving average of $449.34, indicating a loss of momentum [4] Recent Financial Results - Following Q3 fiscal 2025 results, DPZ shares rose 3.9% on October 14, with revenues increasing 6.2% year-over-year to $1.15 billion, surpassing analyst estimates of $1.14 billion [5] - Earnings per share (EPS) reached $4.08, exceeding forecasts of $3.97, although it represented a 2.6% decline from the previous year's quarter due to a 5.2% drop in net income [5] Operational Growth - Domino's added 29 net U.S. stores, bringing its domestic total to 7,090 locations, with management projecting over 175 net U.S. additions for fiscal 2025 [6] - The company anticipates international growth to remain consistent with 2024, indicating strong demand and potential for scale and franchise economics across various markets [6] Competitive Landscape - In comparison, rival Arcos Dorados Holdings Inc. (ARCO) saw an 8.3% decline over 52 weeks but gained 1.9% year-to-date, highlighting mixed competitive conditions [7] - Analysts maintain a "Moderate Buy" consensus rating among 30 analysts, with an average price target of $500.53, suggesting a potential upside of 15.4% from current levels [7]