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Domino's Pizza Q2 'a trough,' outlook 'isn't spectacular': Analysts

Domino's Pizza Q2 'A Trough,' Outlook 'Isn't Spectacular': Analysts
Domino's Pizza Q2 'A Trough,' Outlook 'Isn't Spectacular': Analysts

Shares of Domino’s Pizza Inc DPZ continued to rise in early trading on Tuesday, even after the company reported downbeat second-quarter earnings. Here are some key analyst takeaways: TD Cowen analyst Andrew Charles maintained a Buy rating, while raising the price target from $295 to $310. BTIG analyst Peter Saleh reiterated a Buy rating and price target of $425. Check out other analyst stock ratings. TD Cowen: Domino’s Pizza reported...

Shares of Domino’s Pizza Inc DPZ continued to rise in early trading on Tuesday, even after the company reported downbeat second-quarter earnings.

Here are some key analyst takeaways:

  • TD Cowen analyst Andrew Charles maintained a Buy rating, while raising the price target from $295 to $310.
  • BTIG analyst Peter Saleh reiterated a Buy rating and price target of $425.

Check out other analyst stock ratings.

TD Cowen: Domino’s Pizza reported better-than-expected traffic in the second quarter, offset by disappointing ticket growth. Promotional offers via third-party delivery likely weighed on franchisee profitability, Charles said.

The analyst expects same-store sales to remain flat in the third quarter, helped by:

  • Return of $9.99 Best Deal Ever, which now includes stuffed crust
  • World Cup, which would mostly boost international comps
  • The July 27 launch of S’mores Lava Cakes

"In our view, a lot is riding on the success of new menu innovation planned for 3Q-end that coincides with the CEO transition as we maintain 2H26E U.S. comps," he further wrote.

BTIG: Domino’s Pizza reported mixed quarterly results, with US same store-sales of 0.1% beating consensus of a 0.3% decline, while earnings of $4.07 per share missed expectations of $4.18 per share, Saleh said. Outgoing CEO Russell Weiner indicated that the company plans to launch its most innovative pizza product in the third quarter, which would fill unmet needs and attract new customers, he added.

Management’s 2026 guidance of U.S. same-store sales of low-single digits (1%-3%) implies positive comps in the back half of the year, the analyst stated. While the second quarter may represent a trough for the year, "returning to 1%-2% comps isn’t exactly spectacular," he further wrote.

DPZ Price Action: Shares of Domino’s Pizza had risen by 0.15% to $329.46 at the time of publication on Tuesday.

This article Domino's Pizza Q2 'A Trough,' Outlook 'Isn't Spectacular': Analysts originally appeared on Benzinga.com.

Read full story on Benzinga

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