Domino’s Pizza, Inc. (NYSE: DPZ) has lost some momentum this year, now trading near $427/share after slipping from its highs above $500. While short-term sentiment has softened, the long-term story remains intact. Domino’s global scale, delivery dominance, and digital platform keep it among the most efficient operators in quick service.
Recently, Domino’s reported better-than-expected second-quarter results, with U.S. same-store sales up 3.4% and global retail sales up 5.6% excluding currency effects. The company also expanded its delivery reach through DoorDash and Uber Eats, giving customers new ordering options beyond its own app. On the technology side, Domino’s is continuing to invest in its DomOS operations system and loyalty engine to improve speed, efficiency, and personalization. These updates show Domino’s is adapting quickly to sustain growth in an increasingly competitive fast-food landscape.
This article explores where Wall Street analysts expect Domino’s stock to trade by 2027. We’ve pulled together consensus targets and TIKR’s Guided Valuation Model to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
Domino’s trades near $427/share today. The average analyst price target is $507/share, implying about 19% upside from current levels. Forecasts vary widely, reflecting mixed conviction among analysts:
- High estimate: ~$594/share
- Low estimate: ~$340/share
- Median target: ~$515/share
- Ratings: 18 Buys, 1 Outperform, 12 Holds, 1 Sell
With roughly 20% potential upside, analysts see Domino’s as a steady compounder with room for moderate gains if trends improve. For investors, that means the stock looks fairly valued but could outperform if international momentum and delivery partnerships continue to lift growth and margins.
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Domino’s: Growth Outlook and Valuation
The company’s outlook points to consistent but measured expansion:
- Revenue projected to grow about 5% annually through 2027
- Operating margins expected near 19%
- Shares trade at roughly 23x forward earnings, slightly below long-term averages
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 23x forward P/E suggests ~$552/share by 2027
- That implies about 29% total upside, or roughly 12% annualized returns
These forecasts suggest Domino’s is positioned for steady compounding rather than explosive growth. For investors, the appeal lies in the company’s resilience, disciplined execution, and ability to generate consistent cash flow even in slower markets. The setup favors long-term holders looking for quality and reliability over quick gains.
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What’s Driving the Optimism?
Domino’s continues to show why it’s one of the most efficient operators in quick-service dining. Its strong digital ecosystem now drives most U.S. orders, keeping customer engagement high and costs low. Expanding delivery partnerships and improved tech integration are giving the brand more reach and convenience across markets.
International expansion remains another key growth driver. Emerging markets are adding new stores at a steady pace, and enhanced supply-chain coordination is helping margins stay strong. For investors, these developments suggest Domino’s has multiple levers for consistent earnings growth and durable profitability in the years ahead.
Bear Case: Valuation and Competition
Even with these positives, Domino’s valuation already prices in much of its quality. The stock trades at roughly 23x forward earnings, which is reasonable for a strong brand but leaves limited room for error if growth slows. Rising food and labor costs could still pressure margins, and competition from aggregators like Uber Eats and DoorDash remains intense.
For investors, the main risk lies in expectations. If sales momentum softens or costs rise faster than anticipated, the stock could underperform despite its operational strength.
Outlook for 2027: What Could Domino’s Be Worth
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests Domino’s could trade near $552/share by 2027, representing about 29% total upside and roughly 12% annualized returns.
For investors, that outlook reflects steady mid-single-digit growth and continued margin stability. Domino’s doesn’t need massive expansion to deliver solid returns; it just needs consistent execution and pricing discipline. The company’s strong brand, digital scale, and reliable franchise system make it a high-quality compounder that rewards patience.
While not a high-flyer, Domino’s offers what many investors value most: dependable growth, cash flow visibility, and a business model that has proven resilient across economic cycles.
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