Domino’s Pizza (NASDAQ:DPZ) Shares Gap Up – Here’s What Happened

Domino’s Pizza Inc (NASDAQ:DPZ)’s share price gapped up prior to trading on Monday . The stock had previously closed at $384.61, but opened at $401.90. Domino’s Pizza shares last traded at $396.2530, with a volume of 413,065 shares traded.

Domino’s Pizza News Summary

Here are the key news stories impacting Domino’s Pizza this week:

• Positive Sentiment: Revenue and U.S. comps beat — Q4 revenue was $1.54B (above estimates) and U.S. same‑store sales outperformed expectations, driven by promotions and new menu items, supporting top‑line momentum. Domino’s Q4 press release
• Positive Sentiment: Dividend increase — Board approved a meaningful raise to the quarterly dividend (announced ~15% increase), signaling confidence in free cash flow and returning capital to shareholders. Dividend announcement
• Positive Sentiment: Free cash flow and store growth — Reports cite a double‑digit rise in free cash flow (helping fund the dividend) and continued global net store growth, reinforcing the franchise expansion thesis. FCF and dividend analysis
• Neutral Sentiment: Small EPS miss — Adjusted EPS of $5.35 narrowly missed consensus (~$5.38), though this was viewed as immaterial versus the revenue/comp strength that drove the market reaction. Earnings summary
• Neutral Sentiment: Mixed analyst reaction — Some firms trimmed price targets or noted comp growth concerns even as others kept positive stances; expect divergent analyst notes in the coming days. Analyst reactions
• Negative Sentiment: Questions on sustainable comps and margins — BTIG and other commentary flagged concerns about the durability of same‑store-sales gains driven by promotions, which could pressure long‑term margin expansion. BTIG concerns / market coverage
• Negative Sentiment: Profitability/ROE note — The company still shows mixed profitability metrics (net margin positive but reported negative return on equity in published summaries), a reminder to evaluate capital structure and buyback/dividend tradeoffs. Financial metrics

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on DPZ shares. TD Cowen reaffirmed a “hold” rating and issued a $460.00 price target on shares of Domino’s Pizza in a research report on Monday. Piper Sandler reiterated a “neutral” rating and issued a $445.00 target price on shares of Domino’s Pizza in a research note on Monday, November 24th. Morgan Stanley reissued an “equal weight” rating and set a $455.00 price target (down previously from $535.00) on shares of Domino’s Pizza in a research report on Tuesday, January 20th. Barclays lowered their price objective on Domino’s Pizza from $405.00 to $370.00 and set an “underweight” rating on the stock in a research report on Wednesday, January 7th. Finally, Sanford C. Bernstein restated a “market perform” rating and issued a $490.00 price target on shares of Domino’s Pizza in a research note on Tuesday, December 2nd. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $478.04.

Domino’s Pizza Stock Up 4.2%

The company has a market cap of $13.55 billion, a P/E ratio of 23.47, a P/E/G ratio of 1.81 and a beta of 1.15. The business has a fifty day simple moving average of $407.42 and a two-hundred day simple moving average of $420.71.

Domino’s Pizza (NASDAQ:DPZ) last announced its earnings results on Monday, February 23rd. The restaurant operator reported $5.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.38 by ($0.03). The business had revenue of $1.54 billion for the quarter. Domino’s Pizza had a net margin of 12.16% and a negative return on equity of 14.91%. The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same period last year, the business earned $4.89 EPS. On average, equities analysts predict that Domino’s Pizza Inc will post 16.74 EPS for the current fiscal year.

Insider Activity at Domino’s Pizza

In related news, EVP Kelly E. Garcia sold 4,870 shares of Domino’s Pizza stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $434.06, for a total transaction of $2,113,872.20. Following the transaction, the executive vice president owned 6,744 shares in the company, valued at approximately $2,927,300.64. The trade was a 41.93% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.83% of the stock is owned by insiders.

Hedge Funds Weigh In On Domino’s Pizza

Several large investors have recently made changes to their positions in the business. Principal Financial Group Inc. increased its holdings in shares of Domino’s Pizza by 1.8% in the 3rd quarter. Principal Financial Group Inc. now owns 1,762,568 shares of the restaurant operator’s stock worth $760,939,000 after buying an additional 30,647 shares during the last quarter. Mediolanum International Funds Ltd increased its stake in Domino’s Pizza by 209.6% during the third quarter. Mediolanum International Funds Ltd now owns 4,155 shares of the restaurant operator’s stock worth $1,805,000 after acquiring an additional 2,813 shares during the last quarter. Machina Capital S.A.S. purchased a new position in shares of Domino’s Pizza in the 3rd quarter worth approximately $1,557,000. Berkshire Hathaway Inc boosted its stake in Domino’s Pizza by 0.5% during the second quarter. Berkshire Hathaway Inc now owns 2,633,868 shares of the restaurant operator’s stock worth $1,186,821,000 after buying an additional 13,255 shares during the period. Finally, Railway Pension Investments Ltd raised its stake in shares of Domino’s Pizza by 304.2% in the third quarter. Railway Pension Investments Ltd now owns 9,700 shares of the restaurant operator’s stock valued at $4,188,000 after acquiring an additional 7,300 shares during the period. 94.63% of the stock is currently owned by hedge funds and other institutional investors.

Domino’s Pizza Company Profile

Domino’s Pizza, Inc (NASDAQ: DPZ) is a global pizza delivery and carryout chain founded in 1960 and headquartered in Ann Arbor, Michigan. The company specializes in a broad range of hand‐crafted pizzas, including hand-tossed, thin crust and specialty offerings, alongside side items such as chicken wings, sandwiches, pasta, desserts and beverages. Domino’s has built its brand on convenience and speed, leveraging proprietary ordering platforms and its Domino’s Tracker system to provide real-time status updates from order placement through delivery.

Operating predominantly under a franchise model, Domino’s has more than 17,000 stores worldwide, with approximately 95% of outlets owned and operated by independent franchisees.