DPZ Stock Under Pressure: Analysts Turn Cautious After Earnings Miss, Slower US Sales

• TD Cowen said new products like Stuffed Crust and delivery deals have not led to lasting growth.
• Barclays analyst Jeffrey Bernstein cut his price target to $315 from $370 and kept an Underweight rating. 
• Domino’s reported Q1 revenue and earnings per share below the Street estimates. 

Domino’s Pizza (DPZ) stock is feeling the pressure after it tumbled more than 8% on Monday, marking its steepest single-session decline in a year, as a disappointing first-quarter report rattled investor confidence and prompted a wave of more cautious calls from Wall Street.

Multiple firms have trimmed their price targets amid softer-than-anticipated U.S. sales performance in the first quarter (Q1). 

DPZ’s Slow Start Raises Concerns

TD Cowen lowered its price target to $377 from $400 while maintaining a Hold rating, according to TheFly.  The firm noted that sales momentum in the U.S. lost steam during the first quarter. 

The company now expects business to improve in the second half of the year, rather than the strong first-half growth it had predicted earlier. Analysts also said there are no clear factors right now that could push the stock higher in the near future. 

According to TD Cowen, recent product initiatives such as stuffed-crust offerings and delivery partnerships have not delivered sustained growth. These efforts, once seen as major drivers for 2025, appear to have provided only a temporary boost in a highly competitive pizza market.

Domino’s Pizza stock inched 0.3% higher overnight, heading into Tuesday. On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘neutral’ territory the previous day. 

Barclays Flags Weakening Late-Quarter Trends For DPZ 

Barclays analyst Jeffrey Bernstein took a more cautious stance, slashing his price target to $315 from $370 and reiterating an ‘Underweight’ rating. He cited weakening trends toward the end of the quarter and revised his projections after results came in below expectations.

At the same time, Stifel analyst Chris O’Cull sounded more positive even though he cut his price target to $400 from $485. He kept a “Buy” rating and said Domino’s large size and strong marketing could help support franchise profits. 

O’Cull said smaller rivals could find it hard to compete, especially when they cut prices, reducing their profits. 

Domino’s said it now expects low-single-digit growth in U.S. and international same-store sales in 2026. The company reported Q1 revenue of $1.15 billion and earnings per share (EPS) of $4.13, both below analysts’ consensus estimates of $1.162 billion and $4.27, respectively, according to Fiscal AI data. 

DPZ stock has declined by over 19% year-to-date. 

Also See: CRML Stock Slides Overnight, But Retail Traders Say 'Epic Day' Ahead

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