This Domino's Pizza Analyst Cuts Forecasts Ahead Of Q3 Results

Shares of Domino’s Pizza Inc (NYSE:DPZ) came under pressure on Monday, despite Bank of America Securities predicting a 38% rally in the stock.

The fast-food chain will report fiscal third-quarter results on Oct. 10.

Investors expect Domino’s Pizza's domestic same-store sales (SSS) growth to miss the current consensus estimate of more than 3.8%, according to Piper Sandler.

Analyst Brian Mullan reiterated a Neutral rating for Domino’s Pizza, while reducing the price target from $436 to $429.

The Domino’s Pizza Thesis: If the company reports its domestic SSS growth of around 3% for the third quarter, as is widely expected by investors, it will represent "a deceleration in the five-year stack to +20.4%,” Mullan said in the note.

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Investors believe the company's quarter-to-date trends "have slowed sequentially," the analyst stated.

If the company reports domestic SSS growth of 3%, the fourth-quarter growth rate will come in below 3%, he added.

The stock lost significantly since its high of around $450 around mid-August. The modest consensus misses already seem to be "well understood by the investment community," Mullan wrote.

Mullan further stated that Domino’s Pizza is executing well and "is outperforming many peers in the industry."

The analyst reduced the earnings estimates for fiscal 2025 from $17.76 per share to $17.50 per share. For 2026, estimates reduced from $19.32 per share to $19.10 per share.

Price Action: Shares of Domino’s Pizza had declined by 3.26% to $411.45 at the time of publication on Monday.

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