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DPZ vs PZZA: Which Pizza Stock Is Better Placed at the Moment?
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Both Domino’s Pizza, Inc. (DPZ - Free Report) and Papa John’s International, Inc. (PZZA - Free Report) are dominant players in the U.S. pizza market, each boasting a sizable international presence.
The broader restaurant industry continues to gain from higher menu pricing, average check growth and aggressive expansion. Both companies are also seeing positive momentum from strategic partnerships with third-party delivery services and ongoing digital transformation.
In today’s fast-evolving landscape, digital innovation is no longer optional—it is a strategic necessity. Restaurant operators are investing heavily in technology, streamlining operations and launching new sales-building initiatives to boost profitability. Collaborations with delivery apps and online platforms are helping to widen reach and support off-premise sales growth.
That said, challenges remain. Elevated labor costs and persistent food inflation are squeezing margins. Additionally, inflation-driven menu price hikes are beginning to impact customer traffic in certain segments.
So, in the face of these industry tailwinds and headwinds, which pizza giant, Domino’s or Papa John’s, offers better value for investors right now? Let us take a closer look.
Case for DPZ
The pizza category is a fast-growing segment in the U.S. quick-service restaurant industry and Domino’s is one of the largest pizza chains globally. The company is gaining from robust expansion efforts. Its international growth continues to be strong and diversified across markets, courtesy of exceptional unit-level economics. The company’s largest expected growth markets, China and India, remain on track to deliver on their growth potential concerning net store growth.
Moreover, partnerships with delivery channels continue to aid the company’s revenues. Recently, Domino's partnered with DoorDash for delivery. This collaboration is expected to drive incremental sales by expanding Domino’s customer base while maintaining its in-house delivery network. By tapping into DoorDash’s extensive customer network, Domino’s aims to capture a larger share of the growing aggregator marketplace, which it estimates to be a $1 billion opportunity. This move is particularly strategic for reaching new customers in suburban and rural markets, areas where Domino’s is aggressively expanding its store footprint.
The company continues to focus on diversifying its menu offerings to attract customers. In early March 2025, Domino’s introduced what it describes as one of the most significant menu additions in the history, the Parmesan Stuffed Crust pizza. This launch exemplifies the company's "innovation with intent" strategy, which emphasizes purposeful product development aimed at filling gaps in the menu with offerings that resonate with consumers.
On the other hand, the company is benefiting from its revamped loyalty program. Domino’s views its revamped loyalty program as a long-term growth driver, particularly targeting carryout customers and infrequent buyers. The company added 2.5 million active loyalty members last year, with expectations for sustained momentum.
Case for PZZA
Papa John’s is the world's leading take-out and pizza delivery restaurant chain. A renewed focus on Papa John’s core product, pizza, has been central to its fiscal first quarter strategy. The company effectively implemented its barbell pricing strategy by positioning premium offerings, such as the Epic Stuffed Crust Pizza at $13.99, alongside value-driven items like the $6.99 Papa Pairings. This approach helped drive a 4% year-over-year increase in pizza orders in the fiscal first quarter and strengthened multi-pizza order trends.
The company is also focusing on expanding its footprint. In the first quarter of fiscal 2025, the company operated 2,503 international locations after opening 29 restaurants and closing 42, part of a broader transformation strategy that includes selective closures based on local market conditions. For the full year, the company expects to open 180 to 200 international units while closely monitoring geopolitical and economic trends.
Papa John’s has overhauled the loyalty program to deliver rewards faster for its 37 million-plus members, resulting in stronger engagement and more frequent transactions. New users are also returning sooner, signaling early success. The company sees this as just the beginning, with further enhancements planned to make the program more personalized and emotionally connected to the brand. Looking ahead to 2025, Papa John’s expects these efforts to boost visit frequency and deepen customer loyalty.
How Does Zacks Consensus Estimate Compare for DPZ & PZZA?
The Zacks Consensus Estimate for Domino's 2025 sales and EPS implies year-over-year growth of 4.9% and 6.5%, respectively. Earnings estimates for 2025 have witnessed upward revisions of 1% in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Papa John’s 2025 sales implies a year-over-year increase of 2.1% and the same for EPS indicates a decrease of 23.9%. Earnings estimates for 2025 have witnessed downward revisions of 7.3% in the past 30 days.
Image Source: Zacks Investment Research
Price Performance & Valuation
DPZ stock has gained 3.6% in the past six months against its industry and the S&P 500's decline of 2.8% and 2%, respectively. Conversely, PZZA shares have declined 12% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
DPZ is trading at a forward 12-month price-to-earnings ratio of 26.2X, above its median of 25.47X over the last year. PZZA’s forward earnings multiple is 21.64X, below its median of 18.75X over the same time frame.
Image Source: Zacks Investment Research
Conclusion
Domino’s appears better positioned than Papa John’s at the moment, backed by stronger sales momentum, strategic growth initiatives and positive investor sentiment. Its global expansion efforts, particularly in high-growth markets like China and India, are on track and supported by solid unit-level economics. The recent DoorDash partnership is expanding its reach while preserving the efficient in-house delivery model. Additionally, Domino’s continues to innovate with impactful menu additions and a revamped loyalty program aimed at increasing frequency among lighter users.
In contrast, Papa John’s, while making progress with pricing strategies and loyalty enhancements, faces operational challenges and less favorable earnings revisions. Taken together, Domino’s consistency in execution and growth-focused strategies place it on firmer ground for investors in the current environment. DPZ and PZZA have a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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DPZ vs PZZA: Which Pizza Stock Is Better Placed at the Moment?
Both Domino’s Pizza, Inc. (DPZ - Free Report) and Papa John’s International, Inc. (PZZA - Free Report) are dominant players in the U.S. pizza market, each boasting a sizable international presence.
The broader restaurant industry continues to gain from higher menu pricing, average check growth and aggressive expansion. Both companies are also seeing positive momentum from strategic partnerships with third-party delivery services and ongoing digital transformation.
In today’s fast-evolving landscape, digital innovation is no longer optional—it is a strategic necessity. Restaurant operators are investing heavily in technology, streamlining operations and launching new sales-building initiatives to boost profitability. Collaborations with delivery apps and online platforms are helping to widen reach and support off-premise sales growth.
That said, challenges remain. Elevated labor costs and persistent food inflation are squeezing margins. Additionally, inflation-driven menu price hikes are beginning to impact customer traffic in certain segments.
So, in the face of these industry tailwinds and headwinds, which pizza giant, Domino’s or Papa John’s, offers better value for investors right now? Let us take a closer look.
Case for DPZ
The pizza category is a fast-growing segment in the U.S. quick-service restaurant industry and Domino’s is one of the largest pizza chains globally. The company is gaining from robust expansion efforts. Its international growth continues to be strong and diversified across markets, courtesy of exceptional unit-level economics. The company’s largest expected growth markets, China and India, remain on track to deliver on their growth potential concerning net store growth.
Moreover, partnerships with delivery channels continue to aid the company’s revenues. Recently, Domino's partnered with DoorDash for delivery. This collaboration is expected to drive incremental sales by expanding Domino’s customer base while maintaining its in-house delivery network. By tapping into DoorDash’s extensive customer network, Domino’s aims to capture a larger share of the growing aggregator marketplace, which it estimates to be a $1 billion opportunity. This move is particularly strategic for reaching new customers in suburban and rural markets, areas where Domino’s is aggressively expanding its store footprint.
The company continues to focus on diversifying its menu offerings to attract customers. In early March 2025, Domino’s introduced what it describes as one of the most significant menu additions in the history, the Parmesan Stuffed Crust pizza. This launch exemplifies the company's "innovation with intent" strategy, which emphasizes purposeful product development aimed at filling gaps in the menu with offerings that resonate with consumers.
On the other hand, the company is benefiting from its revamped loyalty program. Domino’s views its revamped loyalty program as a long-term growth driver, particularly targeting carryout customers and infrequent buyers. The company added 2.5 million active loyalty members last year, with expectations for sustained momentum.
Case for PZZA
Papa John’s is the world's leading take-out and pizza delivery restaurant chain. A renewed focus on Papa John’s core product, pizza, has been central to its fiscal first quarter strategy. The company effectively implemented its barbell pricing strategy by positioning premium offerings, such as the Epic Stuffed Crust Pizza at $13.99, alongside value-driven items like the $6.99 Papa Pairings. This approach helped drive a 4% year-over-year increase in pizza orders in the fiscal first quarter and strengthened multi-pizza order trends.
The company is also focusing on expanding its footprint. In the first quarter of fiscal 2025, the company operated 2,503 international locations after opening 29 restaurants and closing 42, part of a broader transformation strategy that includes selective closures based on local market conditions. For the full year, the company expects to open 180 to 200 international units while closely monitoring geopolitical and economic trends.
Papa John’s has overhauled the loyalty program to deliver rewards faster for its 37 million-plus members, resulting in stronger engagement and more frequent transactions. New users are also returning sooner, signaling early success. The company sees this as just the beginning, with further enhancements planned to make the program more personalized and emotionally connected to the brand. Looking ahead to 2025, Papa John’s expects these efforts to boost visit frequency and deepen customer loyalty.
How Does Zacks Consensus Estimate Compare for DPZ & PZZA?
The Zacks Consensus Estimate for Domino's 2025 sales and EPS implies year-over-year growth of 4.9% and 6.5%, respectively. Earnings estimates for 2025 have witnessed upward revisions of 1% in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Papa John’s 2025 sales implies a year-over-year increase of 2.1% and the same for EPS indicates a decrease of 23.9%. Earnings estimates for 2025 have witnessed downward revisions of 7.3% in the past 30 days.
Image Source: Zacks Investment Research
Price Performance & Valuation
DPZ stock has gained 3.6% in the past six months against its industry and the S&P 500's decline of 2.8% and 2%, respectively. Conversely, PZZA shares have declined 12% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
DPZ is trading at a forward 12-month price-to-earnings ratio of 26.2X, above its median of 25.47X over the last year. PZZA’s forward earnings multiple is 21.64X, below its median of 18.75X over the same time frame.
Image Source: Zacks Investment Research
Conclusion
Domino’s appears better positioned than Papa John’s at the moment, backed by stronger sales momentum, strategic growth initiatives and positive investor sentiment. Its global expansion efforts, particularly in high-growth markets like China and India, are on track and supported by solid unit-level economics. The recent DoorDash partnership is expanding its reach while preserving the efficient in-house delivery model. Additionally, Domino’s continues to innovate with impactful menu additions and a revamped loyalty program aimed at increasing frequency among lighter users.
In contrast, Papa John’s, while making progress with pricing strategies and loyalty enhancements, faces operational challenges and less favorable earnings revisions. Taken together, Domino’s consistency in execution and growth-focused strategies place it on firmer ground for investors in the current environment. DPZ and PZZA have a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.