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Research Alert: CFRA Lowers Opinion On Shares Of Domino's Pizza, Inc. To Sell From Hold
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Research Alert: CFRA Lowers Opinion On Shares Of Domino's Pizza, Inc. To Sell From Hold
May 25, 2025 9:44 PM

03:40 PM EDT, 04/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target to $431 from $474, 25x our 2025 EPS estimate, a discount to its 26x three-year average forward. We lower our 2025 EPS estimate to $17.24 from $17.56 and our 2026 EPS estimate to $17.73 from $18.70, reflecting our view of slower comparable sales growth in the U.S. and limited margin expansion potential. Partnerships with delivery platforms like DoorDash and Uber Eats will be critical for driving demand, particularly in DPZ's delivery channel (-1.5% Y/Y in Q1), which should come with higher customer acquisition costs. We think DPZ may benefit from consumers trading down in the current macroeconomic environment as ordering through DPZ's app offers one of the strongest calories per dollar offerings among QSR peers. However, at 27x, we think shares fully reflect enthusiasm in these drivers, while failing to discount stagnant store growth (-9 net new stores Q/Q), decelerating comp growth (-0.5% in the U.S.), and rising food costs (food basket +4.8%).

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