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Domino's Pizza Leverages Growth Initiatives Amid a Challenging Macro
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Key Takeaways
DPZ continues to push growth via Hungry for MORE, menu innovation, marketing and international expansion.
DPZ added net new U.S. stores and sees international momentum, with major openings planned in India and China.
DPZ faces elevated costs and macro pressure, which may keep comparable sales toward the low end of guidance.
Domino's Pizza (DPZ - Free Report) continues to benefit from multiple growth drivers. Its “Hungry for MORE” strategy remains central to driving stronger sales and profitability. Ongoing focus on menu innovation, the success of the Best Deal Ever platform, international expansion and sustained marketing initiatives support momentum. Rising guest satisfaction has further strengthened customer loyalty, collectively positioning the company for long-term growth.
Shares of this casual restaurant chain have lost 2.1% in the past three months against the Zacks Retail - Restaurants industry’s 1.3% rise. Its earnings topped the Zacks Consensus Estimate in two of the trailing four quarters, missed on two occasions, with an average being 1.1%.
Image Source: Zacks Investment Research
The earnings estimate for 2025 has remained unchanged at $17.57 per share for the past 60 days. Despite operating efficiencies and sales growth, elevated costs and a challenging macroeconomic environment continue to cloud the outlook.
Domino’s Pizza — a Zacks Rank #3 (Hold) stock — has a favorable VGM Score of A. Let’s take a closer look at the key factors supporting the stock’s performance and the challenges that may hold it back.
Factors Likely to Help DPZ Stock’s Growth
Brand Image & Franchising Strategy: Domino’s Pizza is among the fastest-growing QSR pizza brands in the United States and one of the largest pizza chains globally. Management highlights best-in-class franchisee economics, the largest advertising budget in the category, a highly scaled supply chain with significant purchasing power and an expanding rewards program as key pillars reinforcing brand strength.
Franchisees remain central to operational excellence, customer satisfaction, and market share gains. In the fiscal third quarter, the U.S. system added 29 net new stores, taking the total to more than 7,090 units, with management reaffirming visibility toward its 7,700-store target by 2028. The company remains confident that its franchise-led, market share–focused model will continue to create long-term value for both operators and shareholders.
International Expansion Efforts: Domino’s Pizza continues to advance its global growth strategy through steady new unit development. In the third quarter of 2025, international retail sales increased 6% year over year, supported by strong same-store sales and the addition of new locations. During the quarter, the U.S. system also expanded with 30 net new stores, bringing the domestic store count to 7,061.
Looking ahead, Domino’s Pizza expects significant international momentum, with franchise partners planning approximately 250 new store openings in India and around 300 in China for the current fiscal year. These expansion plans underscore the strength of Domino’s brand and its franchisee network in high-growth markets.
Focus on Menu Innovation: Domino’s Pizza continues to advance its long-term growth strategy through disciplined menu innovation. The company’s strong fiscal third-quarter performance underscores the effectiveness of its Hungry for MORE strategy, led by the successful launch of Parmesan Stuffed Crust Pizza, which exceeded expectations across product mix, new customer acquisition, and franchisee profitability.
Additionally, Domino’s Pizza introduced new Bread Bites flavors—garlic and cinnamon—marking its second innovation of the year and reinforcing its “innovation with intent” approach. Management emphasized that this strategy carefully balances customer preferences, value perception, and operational efficiency, reflecting a focused and sustainable innovation pipeline designed to drive consistent, long-term growth.
Partnership With Delivery Channels: Domino’s Pizza continues to strengthen its growth strategy by expanding and optimizing partnerships with third-party delivery platforms. During the third quarter, the company completed the full rollout of its DoorDash partnership and remains encouraged by its long-term potential. This initiative, alongside existing relationships such as Uber Eats, is expected to meaningfully support U.S. comparable sales in the coming quarters. Management emphasized that Domino’s Pizza’s scale, operational efficiency, and disciplined pricing approach position the company to drive incremental demand while maintaining profitability across all delivery channels.
Factors Hindering Growth
Macroeconomic Pressure: Management acknowledged a challenging macroeconomic environment and heightened competitive intensity across the restaurant industry, which continues to pressure overall operating conditions. The company noted that U.S. comparable sales could face pressure as macro conditions intensified across the restaurant sector at the start of the fourth quarter. While Domino’s Pizza expects to continue gaining market share, broader category headwinds may constrain full-year comparable sales performance toward the lower end of its 3% guidance.
Key Picks
Some better-ranked stocks from the Zacks Retail-Wholesale sector are:
El Pollo Loco Holdings, Inc. (LOCO - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 19.6%, on average. LOCO stock has lost 1.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LOCO’s 2026 sales and earnings per share (EPS) indicates growth of 1.3% and 4.2%, respectively, from the year-ago period’s levels.
Dillard's, Inc. (DDS - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has rallied 51.9% in the past six months.
The Zacks Consensus Estimate for Dillard’s fiscal 2026 sales indicates growth of 1.3%, while EPS indicates a decline of 10% from the year-ago period’s levels.
Expedia Group, Inc. (EXPE - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 4.5%, on average. EXPE stock has gained 67.8% in the past six months.
The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 6.3% and 20.9%, respectively, from the prior-year levels.
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Domino's Pizza Leverages Growth Initiatives Amid a Challenging Macro
Key Takeaways
Domino's Pizza (DPZ - Free Report) continues to benefit from multiple growth drivers. Its “Hungry for MORE” strategy remains central to driving stronger sales and profitability. Ongoing focus on menu innovation, the success of the Best Deal Ever platform, international expansion and sustained marketing initiatives support momentum. Rising guest satisfaction has further strengthened customer loyalty, collectively positioning the company for long-term growth.
Shares of this casual restaurant chain have lost 2.1% in the past three months against the Zacks Retail - Restaurants industry’s 1.3% rise. Its earnings topped the Zacks Consensus Estimate in two of the trailing four quarters, missed on two occasions, with an average being 1.1%.
Image Source: Zacks Investment Research
The earnings estimate for 2025 has remained unchanged at $17.57 per share for the past 60 days. Despite operating efficiencies and sales growth, elevated costs and a challenging macroeconomic environment continue to cloud the outlook.
Domino’s Pizza — a Zacks Rank #3 (Hold) stock — has a favorable VGM Score of A. Let’s take a closer look at the key factors supporting the stock’s performance and the challenges that may hold it back.
Factors Likely to Help DPZ Stock’s Growth
Brand Image & Franchising Strategy: Domino’s Pizza is among the fastest-growing QSR pizza brands in the United States and one of the largest pizza chains globally. Management highlights best-in-class franchisee economics, the largest advertising budget in the category, a highly scaled supply chain with significant purchasing power and an expanding rewards program as key pillars reinforcing brand strength.
Franchisees remain central to operational excellence, customer satisfaction, and market share gains. In the fiscal third quarter, the U.S. system added 29 net new stores, taking the total to more than 7,090 units, with management reaffirming visibility toward its 7,700-store target by 2028. The company remains confident that its franchise-led, market share–focused model will continue to create long-term value for both operators and shareholders.
International Expansion Efforts: Domino’s Pizza continues to advance its global growth strategy through steady new unit development. In the third quarter of 2025, international retail sales increased 6% year over year, supported by strong same-store sales and the addition of new locations. During the quarter, the U.S. system also expanded with 30 net new stores, bringing the domestic store count to 7,061.
Looking ahead, Domino’s Pizza expects significant international momentum, with franchise partners planning approximately 250 new store openings in India and around 300 in China for the current fiscal year. These expansion plans underscore the strength of Domino’s brand and its franchisee network in high-growth markets.
Focus on Menu Innovation: Domino’s Pizza continues to advance its long-term growth strategy through disciplined menu innovation. The company’s strong fiscal third-quarter performance underscores the effectiveness of its Hungry for MORE strategy, led by the successful launch of Parmesan Stuffed Crust Pizza, which exceeded expectations across product mix, new customer acquisition, and franchisee profitability.
Additionally, Domino’s Pizza introduced new Bread Bites flavors—garlic and cinnamon—marking its second innovation of the year and reinforcing its “innovation with intent” approach. Management emphasized that this strategy carefully balances customer preferences, value perception, and operational efficiency, reflecting a focused and sustainable innovation pipeline designed to drive consistent, long-term growth.
Partnership With Delivery Channels: Domino’s Pizza continues to strengthen its growth strategy by expanding and optimizing partnerships with third-party delivery platforms. During the third quarter, the company completed the full rollout of its DoorDash partnership and remains encouraged by its long-term potential. This initiative, alongside existing relationships such as Uber Eats, is expected to meaningfully support U.S. comparable sales in the coming quarters. Management emphasized that Domino’s Pizza’s scale, operational efficiency, and disciplined pricing approach position the company to drive incremental demand while maintaining profitability across all delivery channels.
Factors Hindering Growth
Macroeconomic Pressure: Management acknowledged a challenging macroeconomic environment and heightened competitive intensity across the restaurant industry, which continues to pressure overall operating conditions. The company noted that U.S. comparable sales could face pressure as macro conditions intensified across the restaurant sector at the start of the fourth quarter. While Domino’s Pizza expects to continue gaining market share, broader category headwinds may constrain full-year comparable sales performance toward the lower end of its 3% guidance.
Key Picks
Some better-ranked stocks from the Zacks Retail-Wholesale sector are:
El Pollo Loco Holdings, Inc. (LOCO - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 19.6%, on average. LOCO stock has lost 1.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LOCO’s 2026 sales and earnings per share (EPS) indicates growth of 1.3% and 4.2%, respectively, from the year-ago period’s levels.
Dillard's, Inc. (DDS - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has rallied 51.9% in the past six months.
The Zacks Consensus Estimate for Dillard’s fiscal 2026 sales indicates growth of 1.3%, while EPS indicates a decline of 10% from the year-ago period’s levels.
Expedia Group, Inc. (EXPE - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 4.5%, on average. EXPE stock has gained 67.8% in the past six months.
The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 6.3% and 20.9%, respectively, from the prior-year levels.