Domino’s Pizza (NYSE:DPZ) shares fell more than 3% intra-day today after Evercore ISI analysts revised their price target to $480, down from $500, while keeping an Outperform rating on the stock.
Ahead of Domino’s third-quarter earnings announcement on Thursday, the analysts cited findings from proprietary consumer panel data that indicate a need to lower US same-store sales (SSS) estimates. Consequently, their Q3 US SSS estimate has been adjusted from +4% to +2%, compared to the Street estimate of +3.8%.
For the fourth quarter, the analysts expect 2% SSS growth in the US, supported by promotional activities, though consensus projects 3.5%. The updated $480 price target, reflecting 24x estimated 2026 EPS, aligns Domino’s closer to its 10-year valuation range and slightly above peers like Yum! Brands and McDonald’s. The analysts highlighted Domino’s upcoming growth catalysts, including DoorDash integration in 2025 and a revamped digital app, as well as confidence in the company’s potential for 8% operating income growth and double-digit EPS gains.