Last week saw the newest yearly earnings release from Domino's Pizza, Inc. (NASDAQ:DPZ), an important milestone in the company's journey to build a stronger business. Domino's Pizza reported in line with analyst predictions, delivering revenues of US$4.7b and statutory earnings per share of US$16.69, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Domino's Pizza
Following the latest results, Domino's Pizza's 29 analysts are now forecasting revenues of US$4.96b in 2025. This would be a satisfactory 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.4% to US$17.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.03b and earnings per share (EPS) of US$17.52 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$487. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Domino's Pizza analyst has a price target of US$555 per share, while the most pessimistic values it at US$415. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Domino's Pizza's rate of growth is expected to accelerate meaningfully, with the forecast 5.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.7% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Domino's Pizza is expected to grow slower than the wider industry.
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$487, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Domino's Pizza going out to 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Domino's Pizza you should know about.
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