Domino's Pizza Inc Common Stock

Domino's Pizza reported second-quarter fiscal 2026 earnings of $4.07 per share, missing the Zacks Consensus Estimate of $4.11 by 1%, while revenues of $1.19 billion beat the consensus estimate of $1.17 billion by 2.1% and rose 4.3% year over year. U.S. same-store sales edged up 0.1%, a sharp slowdown from 3.4% growth a year earlier, and international same-store sales declined 0.1%. The company added 209 net stores globally, bringing its worldwide count to 22,531, and repurchased 443,917 shares for $156.2 million. Domino's also declared a quarterly dividend of $1.99 per share payable September 30, 2026.

Domino's Pizza is trading at roughly 20 times earnings, more than a third below its typical valuation over the past decade. The stock's cheapness reflects investor fears that GLP-1 weight loss drugs and sluggish traffic could structurally break the chain's growth story. U.S. same-store sales rose just 0.9% in Q1 and 0.1% in Q2, while international comps turned slightly negative excluding foreign exchange. Analysts expect tens of millions of Americans to be on drugs like Wegovy and Zepbound by 2030, with studies showing real drops in calorie intake and restaurant data suggesting GLP-1 users eat out less. Domino's CEO says the chain has not yet seen a measurable GLP-1 impact, but markets are pricing in the possibility that late-night pizza demand shrinks.

In his first quarter as CEO of Berkshire Hathaway, Greg Abel sold 15 stock positions that were originally initiated by Warren Buffett, signaling a willingness to chart his own course. The divested holdings included long-time winners like Visa, Mastercard, and Amazon, as well as recent underperformers such as Pool Corp., Diageo, and Domino's Pizza. Abel also made his biggest new buy in Alphabet, which pays only a 0.2% dividend, while exiting higher-yielding names like Lamar Advertising, Diageo, and Pool, suggesting less emphasis on dividend income. Berkshire's cash pile grew from $373.3 billion to $397.4 billion during the quarter, indicating a preference for building liquidity over chasing yield. The moves suggest Abel is not hesitant to sell either winners or losers if he does not foresee market-beating returns, though it remains to be seen whether this pace of change continues.

Domino's Pizza Executive Vice President and Chief Technology and Data Officer Kelly E. Garcia sold 12,430 shares for approximately $4.0 million. The transaction involved a cashless exercise of 12,430 options at $275.35 per share, with the resulting stock sold at a weighted average price of $322.04, realizing a spread of $46.69 per share. The sale disposed of 57% of Garcia's directly held position, leaving her with 9,351 shares valued at roughly $2.99 million based on the July 22, 2026 closing price of $319.83. The remaining stake represents a 0.0281% ownership interest in the $10.6 billion restaurant company.

Domino's Pizza is entering a new phase where pizza demand is driven by capturing occasions across delivery, carryout, loyalty and aggregators rather than a single ordering channel. The company's second-quarter fiscal 2026 results showed U.S. same-store sales up only 0.1% as ticket pressure offset meaningful order-count growth, while it added 26 net U.S. stores to reach 7,231 locations. Management highlighted that aggregator orders on Uber and DoorDash are roughly 50% incremental and carryout remains a key long-term lever, with about 80% of carryout business being incremental when a new store opens. Domino's scale provides lower market-basket costs, a large advertising budget and supply-chain infrastructure, advantages that matter in a promotional restaurant market where competitors like Papa John's and Pizza Hut face similar demand dynamics. The stock currently carries a Zacks Rank #4 (Sell) with a Growth Score of A and a Momentum Score of F, reflecting structural strengths but weak price and earnings momentum.

Several companies made notable premarket moves following their latest earnings reports. Novartis shares jumped 4% after the Swiss pharmaceutical company posted second-quarter core earnings of $2.41 per share on revenue of $14.41 billion, both exceeding StreetAccount consensus estimates. General Motors gained more than 1% after reporting adjusted earnings of $3.57 per share on revenue of $48.03 billion, topping LSEG forecasts. 3M surged more than 5% as the conglomerate beat second-quarter expectations and raised its full-year guidance. Domino's Pizza slipped 1% after earnings of $4.07 per share missed the LSEG consensus of $4.17 per share, though revenue of $1.19 billion slightly beat estimates. Nebius Group rallied 6% after Nvidia disclosed a 9.3% stake in the AI cloud company. Taiwan Semiconductor Manufacturing rose more than 3% on a Nikkei Asia report that it will raise chipmaking service prices by up to 10% next year. Crown Holdings climbed more than 2% after beating top- and bottom-line estimates with earnings of $2.49 per share on revenue of $3.67 billion. Steel Dynamics dipped 1% despite an earnings beat, as it recorded an additional non-cash impairment charge of $16 million. Cracker Barrel Old Country Store added more than 1% after saying it expects to achieve or exceed the high end of its fiscal 2026 revenue range and exceed its adjusted EBITDA outlook.

StockStory identifies Domino's, Sweetgreen, and First Watch as restaurant stocks that warrant caution. Domino's faces poor same-store sales and tepid demand growth of 4.5%, while Sweetgreen struggles with lagging same-store sales and an 8.7 percentage point decline in free cash flow margin. First Watch shows disappointing same-store sales, negative free cash flow, and a high net-debt-to-EBITDA ratio of 8 times. The broader restaurant industry has fallen 1.5% over the past six months, contrasting with the S&P 500's 8.4% return.

As second-quarter earnings season begins, Seeking Alpha's Quant Rating system identifies 39 large-cap US stocks carrying Sell or Strong Sell ratings, reflecting weaker scores across valuation, growth, profitability, momentum, and earnings estimate revisions. Seven of these companies hold the lowest Strong Sell designation with Quant Ratings below 1.50: Crown Castle, SBA Communications, Honeywell, Strategy, Zoetis, Erie Indemnity, and Tractor Supply. The remaining 32 stocks are rated Sell, including widely followed names such as Coinbase Global, Blackstone, S&P Global, Domino's Pizza, Lennar, Clorox, and Fidelity National Information Services. While some of these companies have delivered positive share-price returns this year, their Quant Ratings suggest investors should watch for potential downside risks as quarterly results and guidance are released.

StockStory highlights Natera as a cash-producing stock with exciting potential, while advising investors to avoid Domino’s and IDEX. Natera, which develops genetic tests, saw tests processed grow 19.4% annually over two years, its adjusted operating margin expand by 15.7 percentage points, and free cash flow turn positive over five years. Domino’s is flagged for soft sales growth of 5.2% over seven years and an estimated 5.9% for the next 12 months, trading at 15.3 times forward earnings. IDEX is criticized for underperforming organic revenue, annual EPS growth of just 1.2% over two years, and eroding returns on capital, with shares at 25.2 times forward earnings.

Greg Abel, who succeeded Warren Buffett as Berkshire Hathaway's CEO on December 31, 2025, sold the company's entire stake in Domino's Pizza and more than tripled its position in Alphabet during his first quarter. Berkshire had built a 3.35-million-share Domino's position over six quarters under Buffett, but Abel exited the pizza chain amid historically subpar same-store sales growth, including a 0.4% international decline that broke a 32-year streak of increases. Meanwhile, Abel boosted Berkshire's Alphabet Class A shares and opened a new Class C position, and on June 1, Alphabet announced an $80 billion equity offering with $10 billion purchased by Berkshire at a modest discount, lifting the total stake to over $29 billion and making it a top-five holding. Alphabet's Google search engine commands roughly 90% of global internet search traffic, and its AI integration has reaccelerated Google Cloud sales growth.

Domino's Pizza is set to report fiscal second-quarter 2026 earnings before the market opens on Monday, July 20. Analysts expect a profit of $4.15 per share, up 8.9% from $3.81 a year ago, though the company has missed consensus estimates in three of the last four quarters. The report follows a June 23 announcement that CEO Russell Weiner will retire, with President and COO Joe Jordan taking over on October 1, a move that prompted several analysts to lower price targets and sent shares down 3.2% that day. DPZ stock has fallen 37% over the past 52 weeks, underperforming the S&P 500's 20.8% gain and the Consumer Discretionary Select Sector SPDR ETF's 6.4% rise. Analysts maintain a Moderate Buy rating with an average price target of $399.14, implying a potential upside of 39.8%.

Domino’s Pizza shares have fallen nearly 40% over the past year as pizza’s share of U.S. restaurant spending slips and investors react to slowing sales and a surprise CEO change. The company said Chief Operating Officer Joe Jordan will replace CEO Russell Weiner, a shake-up that spooked investors and sent shares lower after first-quarter U.S. same-store sales growth came in at just 0.9%, prompting management to abandon its 3% target for 2026. Despite the headwinds, Domino’s continues to gain market share among the top three public pizza chains, climbing to 54% in 2025 from 38% in 2016, while Pizza Hut and Papa John’s shrink. Its vertically integrated supply chain and larger advertising budget help a typical Domino’s restaurant generate $166,000 in EBITDA per unit, far above Pizza Hut’s $55,000, and the asset-light corporate model produced $672 million in free cash flow last year. With the stock now trading at about 14 times forward earnings, a level not seen since the post-financial-crisis years, patient investors could benefit from steady buybacks and dividends even if same-store sales growth remains low.

Domino's shares fell 3.2% after the company announced CEO Russell Weiner will retire, with President and COO Joe Jordan set to take over on October 1. JPMorgan lowered its price target to $380 from $430, BTIG cut to $425 from $450, and RBC Capital and Baird also trimmed their targets, with RBC citing increased competitive pressures. An analyst from Morgan Stanley noted the smooth succession plan is not expected to address short-term challenges. The stock was trading at $284.58, down 3.6% from the previous close.

Domino's reported first-quarter revenues of $1.15 billion, up 3.5% year on year but falling 1% short of analyst expectations, alongside a slight miss on same-store sales and EPS estimates. The stock has declined 21% since the announcement, trading at $290.45. Among the 12 traditional fast food stocks tracked, the group collectively beat revenue consensus by 1.4% but saw average share prices fall 3.7%. El Pollo Loco was the best performer, with revenues of $126.2 million beating estimates by 3.2% and its stock rising 14.2%, while Papa John's was the weakest, with revenues of $478.6 million missing by 1.4% and posting the slowest revenue growth in the group.

Domino's Pizza named Chief Operating Officer Joe Jordan as its next CEO, effective October 1, tapping a longtime insider to lead the world's largest pizza company as it contends with slowing sales and a more competitive market. Jordan, 53, currently also serves as president of Domino's U.S. operations and has spent close to 15 years at the company, building experience across marketing, technology, franchisee support, and both U.S. and international operations. Outgoing CEO Russell Weiner will transition to executive chairman-designate on the same date, with plans to become executive chairman following the company's 2027 annual shareholder meeting, while current Executive Chairman David Brandon will retire from the board in 2027 after 28 years of service. The leadership change comes after first-quarter domestic same-store sales rose only 0.9% against a Bloomberg consensus estimate of 2.6%, and overseas same-store sales declined 0.4%, missing the 0.7% gain analysts had projected. Shares have shed roughly 30% so far this year, and the stock dropped another 2% after the announcement.

MoonLake Immunotherapeutics, Best Buy, and Domino's Pizza all declined in after-hours trading Monday following separate announcements. MoonLake Immunotherapeutics slipped 3.3% after unveiling a $150 million public offering of Class A ordinary shares and pre-funded warrants. Best Buy fell about 3% after disclosing that CFO Matt Bilunas will step down on July 31, ending a seven-year tenure in the role. Domino's Pizza dropped more than 2% after CEO Russell Weiner notified the board of his intention to retire effective September 30, 2026, signaling an upcoming leadership transition.

Domino's Pizza stock is trading at its lowest valuation in more than a decade, with a price-to-earnings ratio of 17 times earnings and 16 times forward earnings, a level not seen since 2012. The stock has fallen 25% year to date to $312 per share, near its 52-week low, after first-quarter earnings missed revenue and earnings estimates. U.S. same-store sales rose 1% while international same-store sales fell 0.4%, and the company lowered its U.S. same-store growth guidance to low single digits. Despite the challenges, Domino's is expanding digital sales, which now account for 85% of U.S. orders, and has added DoorDash and Uber Eats as delivery partners, while gross margin improved 60 basis points to 40.4%. Wall Street analysts maintain a buy rating with a median price target of $400, implying 28% upside.