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Domino's Stock Falls 10% in a Month: Should You Buy, Sell or Hold?
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Domino’s Pizza, Inc. (DPZ - Free Report) stock has tumbled 10.3% over the past month, underperforming the industry’s 5.2% drop. The broader market has also struggled, with the S&P 500 sliding 8.4% during the same period.
On Tuesday, DPZ closed at $430.56, well below its 52-week high of $542.75 but still above its 52-week low of $396.06. Despite the recent weakness, the stock has fared better than several key industry peers, including Starbucks Corporation (SBUX - Free Report) , CAVA Group, Inc. (CAVA - Free Report) and Dutch Bros Inc. (BROS - Free Report) , over the past month.
DPZ Stock Price Performance
Image Source: Zacks Investment Research
The recent dip in DPZ share price can be primarily attributed to weakness in the global market, the company’s earnings and revenue miss in fourth-quarter 2024, and a decline in the domestic company-owned store comps. In fourth-quarter 2025, at domestic company-owned stores, Domino’s comps fell 0.7% year over year against the 5.9% rise a year ago.
Inflationary pressures in commodity and labor costs continue to hurt the company. The industry players expect to witness higher costs for quite some time due to labor shortages. The company has been witnessing labor challenges in a handful of markets. Furthermore, it expects additional net closures by Domino’s Pizza Enterprises in 2025 to impact global retail sales and profit in 2026. As a result, projections for 2026 are expected to be in line with those given for 2025. Domino’s Pizza Enterprises its Australian master franchisee, plans to close more than 200 underperforming stores, primarily in Japan.
Can Domino’s Stock Regain Its Momentum?
Increased international comps are aiding the company. In fourth-quarter 2024, comps at international stores, excluding foreign currency translation, rose 2.7% compared with 0.1% in the prior-year quarter. The metric benefited from improvement in Asia, which was driven by robust comps in India, as well as broadly across Europe.
The company’s largest expected growth markets, China and India, remain on track to deliver on their net store growth potential. In China, DPC Dash announced that they would increase their net openings per annum to 300-350 stores starting in 2025.
The introduction of New York Style Pizza, and Mac & Cheese Pasta contributed to sales momentum. Domino’s plans to continue product innovation with at least two launches in 2025. Then again, the company’s reward program is aiding its performance. In 2024, it grew its active membership by 2.5 million to 35.7 million from 2023. Growth was driven by attracting more light users and carryout customers, the main focus of the program’s redesign. A larger user base allows the company to engage more customers through targeted and personalized marketing.
DPZ also implemented various strategies across international markets to drive sales growth in fiscal 2024. In the fourth quarter of fiscal 2024, Canada’s Emergency Pizza promotion helped increase traffic. In India, Jubilant boosted sales by removing the delivery fee.
DPZ’s Guidance for 2025
Domino’s remains focused on driving market share growth in 2025 despite ongoing macroeconomic pressures. The company expects global retail sales growth to align with 2024 levels and predicts U.S. same-store sales to be in line with its long-term annual growth target of 3%. However, challenges, such as inflation and consumer spending shifts, could impact this outlook, with stronger performance anticipated in the latter half of the year due to initiatives like expanded aggregator partnerships and enhanced loyalty programs.
DPZ continues to expect to open more than 175 net U.S. locations while maintaining a disciplined international growth strategy. The company remains committed to its “Hungry for MORE” strategy, emphasizing innovation, operational efficiency and value-driven promotions to sustain momentum in a competitive landscape.
Domino’s Bottom Line Improves
The company’s earnings trajectory looks promising, with projections pointing to growth. It is expected to deliver earnings of $17.45 per share in 2025, suggesting a 4.6% year-over-year rise. The momentum is set to continue into 2026, with earnings anticipated to climb to $19.44 per share, implying an 11.4% year-over-year increase.
This earnings expansion underscores Domino’s strong upside potential and reinforces confidence in its long-term growth story.
Image Source: Zacks Investment Research
DPZ Stock Valuation Looks Attractive
The stock is trading at 24.14 times forward 12-month earnings, which is lower than the industry average and below its one-year median.
DPZ P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Domino’s Investment Strategy
DPZ remains a solid long-term player in the quick-service restaurant space, backed by strong brand recognition, continued international expansion and innovations. While recent stock weakness has been led by earnings and revenue misses, rising costs, and challenges in the domestic market, the company’s ability to drive international growth, enhance its loyalty program, and introduce menu innovations provides a cushion against short-term pressures.
Domino’s disciplined expansion strategy and aggregator partnerships are expected to support sales momentum. However, near-term headwinds, including macroeconomic uncertainties, higher operational costs and franchisee challenges, could limit immediate upside potential. Given these factors, existing investors may find it prudent to hold on to DPZ as it navigates these challenges while maintaining a long-term growth trajectory. However, new investors may want to wait for a more favorable entry point, as cost pressures and near-term uncertainties could keep the stock range-bound in the short term. The company currently has a Zacks Rank #3 (Hold).
Image: Shutterstock
Domino's Stock Falls 10% in a Month: Should You Buy, Sell or Hold?
Domino’s Pizza, Inc. (DPZ - Free Report) stock has tumbled 10.3% over the past month, underperforming the industry’s 5.2% drop. The broader market has also struggled, with the S&P 500 sliding 8.4% during the same period.
On Tuesday, DPZ closed at $430.56, well below its 52-week high of $542.75 but still above its 52-week low of $396.06. Despite the recent weakness, the stock has fared better than several key industry peers, including Starbucks Corporation (SBUX - Free Report) , CAVA Group, Inc. (CAVA - Free Report) and Dutch Bros Inc. (BROS - Free Report) , over the past month.
DPZ Stock Price Performance
Image Source: Zacks Investment Research
The recent dip in DPZ share price can be primarily attributed to weakness in the global market, the company’s earnings and revenue miss in fourth-quarter 2024, and a decline in the domestic company-owned store comps. In fourth-quarter 2025, at domestic company-owned stores, Domino’s comps fell 0.7% year over year against the 5.9% rise a year ago.
Inflationary pressures in commodity and labor costs continue to hurt the company. The industry players expect to witness higher costs for quite some time due to labor shortages. The company has been witnessing labor challenges in a handful of markets. Furthermore, it expects additional net closures by Domino’s Pizza Enterprises in 2025 to impact global retail sales and profit in 2026. As a result, projections for 2026 are expected to be in line with those given for 2025. Domino’s Pizza Enterprises its Australian master franchisee, plans to close more than 200 underperforming stores, primarily in Japan.
Can Domino’s Stock Regain Its Momentum?
Increased international comps are aiding the company. In fourth-quarter 2024, comps at international stores, excluding foreign currency translation, rose 2.7% compared with 0.1% in the prior-year quarter. The metric benefited from improvement in Asia, which was driven by robust comps in India, as well as broadly across Europe.
The company’s largest expected growth markets, China and India, remain on track to deliver on their net store growth potential. In China, DPC Dash announced that they would increase their net openings per annum to 300-350 stores starting in 2025.
The introduction of New York Style Pizza, and Mac & Cheese Pasta contributed to sales momentum. Domino’s plans to continue product innovation with at least two launches in 2025. Then again, the company’s reward program is aiding its performance. In 2024, it grew its active membership by 2.5 million to 35.7 million from 2023. Growth was driven by attracting more light users and carryout customers, the main focus of the program’s redesign. A larger user base allows the company to engage more customers through targeted and personalized marketing.
DPZ also implemented various strategies across international markets to drive sales growth in fiscal 2024. In the fourth quarter of fiscal 2024, Canada’s Emergency Pizza promotion helped increase traffic. In India, Jubilant boosted sales by removing the delivery fee.
DPZ’s Guidance for 2025
Domino’s remains focused on driving market share growth in 2025 despite ongoing macroeconomic pressures. The company expects global retail sales growth to align with 2024 levels and predicts U.S. same-store sales to be in line with its long-term annual growth target of 3%. However, challenges, such as inflation and consumer spending shifts, could impact this outlook, with stronger performance anticipated in the latter half of the year due to initiatives like expanded aggregator partnerships and enhanced loyalty programs.
DPZ continues to expect to open more than 175 net U.S. locations while maintaining a disciplined international growth strategy. The company remains committed to its “Hungry for MORE” strategy, emphasizing innovation, operational efficiency and value-driven promotions to sustain momentum in a competitive landscape.
Domino’s Bottom Line Improves
The company’s earnings trajectory looks promising, with projections pointing to growth. It is expected to deliver earnings of $17.45 per share in 2025, suggesting a 4.6% year-over-year rise. The momentum is set to continue into 2026, with earnings anticipated to climb to $19.44 per share, implying an 11.4% year-over-year increase.
This earnings expansion underscores Domino’s strong upside potential and reinforces confidence in its long-term growth story.
Image Source: Zacks Investment Research
DPZ Stock Valuation Looks Attractive
The stock is trading at 24.14 times forward 12-month earnings, which is lower than the industry average and below its one-year median.
DPZ P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Domino’s Investment Strategy
DPZ remains a solid long-term player in the quick-service restaurant space, backed by strong brand recognition, continued international expansion and innovations. While recent stock weakness has been led by earnings and revenue misses, rising costs, and challenges in the domestic market, the company’s ability to drive international growth, enhance its loyalty program, and introduce menu innovations provides a cushion against short-term pressures.
Domino’s disciplined expansion strategy and aggregator partnerships are expected to support sales momentum. However, near-term headwinds, including macroeconomic uncertainties, higher operational costs and franchisee challenges, could limit immediate upside potential.
Given these factors, existing investors may find it prudent to hold on to DPZ as it navigates these challenges while maintaining a long-term growth trajectory. However, new investors may want to wait for a more favorable entry point, as cost pressures and near-term uncertainties could keep the stock range-bound in the short term. The company currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.