Domino’s Pizza shares rise after Baird upgrades stock on improving sales outlook

Domino’s Pizza (DPZ) stock rose 2.1% to $340.24 after Baird upgraded it to Outperform with a $400 price target, citing improved sales and franchise profitability. BMO Capital also reiterated its Outperform rating and $390 target, noting positive investor meetings and strong Q3 results with EPS of $4.60 and revenue of $1.186 billion.

Domino's (DPZ) reported Q3 revenue of $1.19B, up from $1.15B YoY, and EPS of $4.60, exceeding estimates. U.S. same-store sales growth slowed to 0.3% from 5.2% YoY. Baird upgraded the stock, citing a clearer path to improved sales, but noted potential 2026 slowdown. DPZ shares are down 18% YTD.

Baird upgraded Domino's Pizza (DPZ) to Outperform, raising its price target to $400 from $320, citing improved same-store sales and franchisee profitability. The new target implies about 20% upside.

Baird upgraded Domino's Pizza to Outperform from Neutral and raised its price target to $400 from $320, a 25% increase. The new target implies a 20% upside from the Nov 12 close of $333.23. Recent analyst price targets for the company range from $308 to $380.

Domino’s Pizza stock fell 2.9% after reporting a slowdown in like-for-like sales growth to 2.3% in Q3, down from 4.9% in the first half. The company reiterated full-year earnings guidance, offering no upgrade. The broader UK market also declined due to higher-than-expected inflation data. The stock remains above its 52-week low but faces investor skepticism over growth prospects.

Restaurant prices rose 3.5% YoY in September, outpacing grocery price increases of 1.8%, per the Bureau of Labor Statistics. McDonald's (MCD), Yum Brands (YUM), and Domino's Pizza (DPZ) face affordability challenges as wages lag inflation, impacting sector growth. McDonald's has acknowledged the issue and announced an $8.5B plan to address it.