Domino's Pizza (DPZ) PT Lowered to $320 at RBC Capital

RBC Capital analyst Logan Reich lowered the price target on Domino's Pizza (NASDAQ: DPZ) to $320.00 (from $325.00) while maintaining a Sector Perform rating.

The analyst commented: "No relief in sight for the consumer, lowering estimates and PT to $320; DPZ's overall 3Q print and updated FY26 outlook was below expectations as ongoing consumer pressures create an increasingly unfavorable consumer backdrop which we expect will continue to weigh on restaurants more broadly. Negatively, 1) US macro headwinds are manifesting in lower items per order on both 1p delivery and carryout. 2) Management lowered the 2026 US unit growth outlook to 125-150 net adds from 175 as sluggish top-line growth is driving franchisee dollar profitability lower y/y, impacting new store development. Further, we expect higher rates and oil-related inflation to be a headwind to the pipeline in 2027, where there's no obvious catalyst for improvement ex macro becoming more favorable. 3) International comps missed and continue to be impacted by DPE, where improvement in trends may take some time. Positively, 1) transaction comps were positive in 3Q and management specifically called out the low-income consumer. 2) Supply chain margins expanded 90 bps y/y to 12.2% vs. Street's 11.6% estimate, driven by procurement productivity and route optimization. 3) EPS beat by 5%, though was partially driven by G&A timing. Lowering estimates and PT to $320 and remain Sector Perform given lack of visibility in US trends improvement."

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