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Key Takeaways:
- Analysts expect Domino’s to report revenue growth of 4.16% year over year to $1.14 billion in Q2.
- Adjusted earnings are forecast to decline by 1.90% YoY to $3.95 per share.
- Based on analysts’ consensus estimates, our valuation model projects that DPZ stock could gain 31.3% over the next 2.5 years, indicating strong potential upside despite current headwinds.
In Q1 of 2025, Domino’s Pizza (DPZ) reported challenging results, with U.S. same-store sales declining 0.5% while international same-store sales grew 3.7% in a difficult macroeconomic environment.
Domino’s is forecast to report its Q2 earnings next Monday. Analysts covering DPZ stock expect revenue to grow by 4% year over year to $1.14 billion in the June quarter, while earnings are forecast to drop by 2% to $3.95 per share.
The pizza delivery giant maintained its full-year U.S. same-store sales guidance of 3% growth, despite Q1 headwinds, with management expecting stronger performance in the second half of the year, driven by key strategic initiatives, including the national rollout of DoorDash and the successful launch of Parmesan Stuffed Crust Pizza.
DPZ stock has beaten revenue and earnings estimates in four of the last five quarters.
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Domino’s Strategic Initiatives Under Focus
Domino’s has demonstrated strategic resilience through its “Hungry for MORE” strategy, positioning itself for sustained growth despite macro headwinds affecting the broader QSR industry.
The partnership with DoorDash represents a growth catalyst, as management expects the platform to generate approximately 2x the pizza orders of Uber Eats with 50% incrementality. The national rollout began in May with meaningful impact anticipated in the back half of 2025.
Domino’s successful launch of Parmesan Stuffed Crust Pizza in March addresses what CEO Russell Weiner called “the largest gap in our pizza portfolio.”
The new product has shown strong customer satisfaction scores and order mix penetration, with competitors historically achieving a 15% mix with stuffed crust offerings.
The company’s three-pillar “Hungry for MORE” strategy continues to drive market share gains across both U.S. and international markets.
The strategy focuses on delivering the “most delicious food” through innovation, operational excellence, and renowned value, achieved through national promotions and aggregator partnerships.
International growth remains a key driver, with the segment reporting 8.2% retail sales growth excluding currency impacts in Q1. Management expects continued mid-single-digit growth from international markets, which will provide geographic diversification and stability.
With aggressive value positioning, best-in-class franchisee economics, and a robust development pipeline of 175 net new U.S. stores planned for 2025, Domino’s maintains competitive advantages in a challenging consumer environment.
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Is DPZ Stock a Buy Before Its Q2 Earnings?
Our valuation model estimates that Domino’s will increase revenue steadily through 2028, while the company continues to gain market share in the pizza category despite macroeconomic pressures.
We can see that the valuation model projects DPZ stock to gain 31% over the next 2.5 years, indicating an annualized return of 12% (including dividends). This suggests significant potential upside despite current consumer headwinds.
DPZ stock has outperformed the broader markets in the past decade, rising over 300% since July of 2015.
Notably, Domino’s diversified revenue streams, international expansion, and strategic technology investments position it well for long-term value creation
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
