Domino’s Pizza (NASDAQ:DPZ) Shares Gap Down – Time to Sell?

Shares of Domino’s Pizza Inc (NASDAQ:DPZ) gapped down before the market opened on Tuesday. The stock had previously closed at $310.90, but opened at $287.01. Domino’s Pizza shares last traded at $300.14, with a volume of 609,009 shares trading hands.

Domino’s Pizza News Roundup

Here are the key news stories impacting Domino’s Pizza this week:

• Positive Sentiment: Third-quarter earnings exceeded expectations. Domino’s reported EPS of $4.60, up from $4.08 a year earlier and above consensus estimates near $4.33-$4.38. Revenue rose 3.4% year over year to $1.19 billion, also beating forecasts. Domino’s Pizza third-quarter 2026 financial results
• Positive Sentiment: Operational growth and shareholder returns provided support. Global net store growth reached 175 locations, operating income increased 8.3%, and Domino’s declared a quarterly dividend of $1.99 per share, equivalent to a $7.96 annualized payout and approximately a 2.7% yield.
• Neutral Sentiment: Analyst views remain mixed but generally imply upside. BTIG reaffirmed a Buy rating with a $425 target, while Bank of America maintained Buy at $410. However, Morgan Stanley, RBC, Robert W. Baird and Citigroup lowered their targets to $345, $320, $320 and $308, respectively, with neutral or market-perform ratings. The cuts reflect reduced forecasts rather than a complete loss of confidence.
• Negative Sentiment: Same-store sales and consumer demand were weak. U.S. same-store sales increased only 0.3%, while international same-store sales grew 0.2% excluding currency effects. Management cited cautious consumers, competition and pressure on items per order, raising concerns that customers are spending less each time they order. Reuters Domino’s outlook
• Negative Sentiment: Analysts cut estimates following the report. Forecast reductions cited an “increasingly unfavorable consumer backdrop,” weak international sales and slowing growth. Narrower store margins and muted full-year same-store sales expectations are outweighing the quarterly profit beat, explaining why DPZ has decreased despite stronger-than-expected results. Benzinga analyst estimate cuts

Wall Street Analyst Weigh In

DPZ has been the topic of a number of recent analyst reports. Guggenheim dropped their price objective on Domino’s Pizza from $440.00 to $325.00 and set a “neutral” rating on the stock in a research note on Wednesday, September 23rd. Benchmark restated a “buy” rating on shares of Domino’s Pizza in a research note on Tuesday, July 21st. TD Cowen restated a “hold” rating and set a $320.00 target price on shares of Domino’s Pizza in a research note on Tuesday. BTIG Research reaffirmed a “buy” rating and issued a $425.00 target price on shares of Domino’s Pizza in a report on Wednesday. Finally, Evercore reaffirmed an “outperform” rating on shares of Domino’s Pizza in a report on Thursday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $380.87.

Domino’s Pizza Trading Down 0.1%

The firm’s fifty day moving average price is $322.65 and its 200-day moving average price is $327.05. The company has a market cap of $9.79 billion, a P/E ratio of 16.30, a P/E/G ratio of 1.35 and a beta of 0.94.

Domino’s Pizza (NASDAQ:DPZ) last released its earnings results on Tuesday, October 13th. The restaurant operator reported $4.60 earnings per share for the quarter, beating the consensus estimate of $4.33 by $0.27. Domino’s Pizza had a net margin of 12.03% and a negative return on equity of 15.48%. The business had revenue of $1.19 billion during the quarter. During the same quarter in the previous year, the business posted $4.08 EPS. The firm’s quarterly revenue was up 3.4% on a year-over-year basis. As a group, research analysts forecast that Domino’s Pizza Inc will post 18.98 earnings per share for the current fiscal year.

Domino’s Pizza Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 30th. Investors of record on Tuesday, December 15th will be paid a dividend of $1.99 per share. This represents a $7.96 annualized dividend and a yield of 2.7%. The ex-dividend date is Tuesday, December 15th. Domino’s Pizza’s payout ratio is currently 45.15%.

Insider Activity at Domino’s Pizza

In other news, EVP Kelly E. Garcia sold 12,430 shares of Domino’s Pizza stock in a transaction that occurred on Wednesday, July 22nd. The stock was sold at an average price of $322.04, for a total transaction of $4,002,957.20. Following the sale, the executive vice president owned 9,352 shares of the company’s stock, valued at approximately $3,011,718.08. This trade represents a 57.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Russell J. Weiner sold 10,850 shares of Domino’s Pizza stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $330.83, for a total value of $3,589,505.50. Following the sale, the chief executive officer directly owned 43,829 shares in the company, valued at $14,499,948.07. The trade was a 19.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.89% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Soroban Capital Partners LP bought a new position in Domino’s Pizza in the 1st quarter valued at $895,251,000. BlackRock Inc. bought a new stake in shares of Domino’s Pizza during the second quarter worth $715,704,000. Van ECK Associates Corp raised its position in shares of Domino’s Pizza by 937,192.2% during the second quarter. Van ECK Associates Corp now owns 478,019 shares of the restaurant operator’s stock worth $141,513,000 after acquiring an additional 477,968 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Domino’s Pizza by 247.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 527,246 shares of the restaurant operator’s stock worth $189,171,000 after acquiring an additional 375,709 shares during the last quarter. Finally, Berkshire Hathaway Inc lifted its stake in shares of Domino’s Pizza by 12.3% during the fourth quarter. Berkshire Hathaway Inc now owns 3,350,000 shares of the restaurant operator’s stock valued at $1,396,347,000 after acquiring an additional 368,055 shares during the period. 94.63% of the stock is currently owned by institutional investors and hedge funds.

About Domino’s Pizza

Domino’s Pizza, Inc is a global quick-service restaurant company specializing in pizza delivery and carryout. Its menu includes a variety of pizzas, sides, desserts and beverages, with orders placed through digital platforms, phone ordering and participating stores.

Founded in 1960 in Ypsilanti, Michigan, Domino’s began as a small pizza business and adopted its current name in 1965. The company has expanded through a primarily franchise-based model, supported by company-owned stores and an integrated supply chain that provides food and other products to many participating locations.

Domino’s serves customers in the United States and international markets across North America, Europe, Asia-Pacific, the Middle East, Africa and other regions.