Here’s How Domino’s Pizza Shares Can Hit $550 in 2026

Core Viewpoint - Domino's Pizza has shown strong performance in 2025, with shares increasing 9.3% from November lows, currently trading near $434, and analysts are optimistic about reaching $550 per share by 2026 [2][6]. Financial Performance - The consensus 12-month price target for Domino's is $496.65, indicating a potential upside of 14.5% from current levels, with 20 out of 34 analysts rating it a buy or strong buy [3]. - Quarterly earnings growth is projected at 30.1% year over year, with Domino's beating Q3 2025 estimates with an EPS of $4.08 compared to the $3.95 consensus [4][8]. Strategic Initiatives - CEO Russell Weiner has highlighted the "Hungry for MORE" strategy, focusing on market share and operational excellence, supported by over 21,700 stores in 90+ markets, primarily operating under a capital-light franchise model [5]. - The company's emphasis on digital ordering and delivery aligns with consumer trends towards personalization and convenience [5]. Valuation Insights - Currently trading at approximately 25x trailing earnings and 22x forward earnings, reaching $550 would imply a valuation of about 32x forward earnings, which is a premium but justifiable given the 30% annual earnings growth [6][7]. Growth Drivers - Continued earnings beats are expected, with Domino's having beaten estimates by 3.3% in Q3 2025, and prediction markets showing 100% confidence in this performance [8]. - U.S. same-store sales grew by 5.2% in Q3, with international sales up 1.7%, indicating strong sales momentum [8]. - The company added 214 net new stores in Q3, with significant room for international expansion as it has only penetrated 90 markets globally [8]. Market Positioning - The restaurant sector underperformed in 2024, but renewed investor interest has been noted in late 2025, positioning Domino's as a quality leader in the market [9]. - Institutional ownership stands at 92.4%, with significant stakes from Berkshire Hathaway and Frontier Capital, indicating strong backing from institutional investors [9].