Domino's Pizza Inc. (NASDAQ:DPZ) Sees Optimistic Price Target from UBS Despite Mixed Q2 Results

UBS sets a price target of $540 for Domino's Pizza Inc. (NASDAQ:DPZ), indicating a potential increase of 13.27%. Domino's reported Q2 revenue of $1.15 billion and an EPS of $3.81, slightly missing the expected EPS of $3.93. The company's growth in delivery and carryout services in the U.S. and strategic initiatives like menu expansion and integration with aggregators have bolstered its market position.

Domino's Pizza Inc. (NASDAQ:DPZ) is a leading player in the global pizza delivery and carryout market. Known for its innovative approach to pizza delivery, Domino's has established a strong presence in the quick-service restaurant (QSR) category. The company competes with other major pizza chains like Pizza Hut and Papa John's, leveraging its extensive network and technological advancements to maintain its market position.

On July 22, 2025, Dennis Geiger from UBS set a price target of $540 for DPZ, suggesting a potential price increase of approximately 13.27% from the stock's price of $476.72 at the time. This optimistic outlook comes despite Domino's mixed second-quarter results. The company reported revenue of $1.15 billion, slightly above the analyst consensus of $1.14 billion, but its earnings per share (EPS) of $3.81 fell short of the expected $3.93.

Despite the earnings miss, Domino's CEO Russell Weiner highlighted the company's growth in delivery and carryout services in the U.S., which contributed to significant market share gains. The integration with the two largest aggregators and the introduction of a comprehensive range of crust types, including stuffed crust, have bolstered Domino's competitive edge. The company's strong unit economics, the largest advertising budget, and a robust supply chain further support its future prospects.

Following the earnings announcement, Domino's shares experienced a slight decline of 0.8%, closing at $462.24. However, the stock has since rebounded, with the current price at $478.08, reflecting an increase of 3.43% or $15.84. The stock has traded between $458.17 and $479.02 today, with a market capitalization of approximately $16.23 billion. The trading volume for DPZ is 504,052 shares on the NASDAQ exchange.

Domino's reported second-quarter U.S. same-store sales that exceeded analysts' expectations, driven by new menu items and promotions. This positive performance led to a rise in Domino's shares by approximately 5% in early trading, despite ongoing macroeconomic uncertainties. The company's strategic initiatives and strong market position continue to attract investor interest, as highlighted by UBS's price target.