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    How Investors Are Reacting To Domino's Pizza (DPZ) Strong Q3 Beat And Aggressive 2025 Store Expansion Plans

    Simply Wall St·12/15/2025 13:15:05
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    • In Q3 fiscal 2025, Domino's Pizza reported revenue of US$1.15 billion, a 6.2% year-over-year increase, alongside earnings per share that exceeded analyst estimates and net additions of 29 U.S. stores, reinforcing its footprint of more than 21,000 locations worldwide.
    • Management’s expectation for more than 175 net new U.S. stores in fiscal 2025, combined with ongoing international expansion, highlights Domino’s focus on scaling its delivery-led model despite softer category traffic.
    • We’ll now examine how Domino’s better-than-expected Q3 results and upbeat 2025 store growth outlook influence its existing investment narrative.

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    Domino's Pizza Investment Narrative Recap

    To own Domino’s, you need to believe its delivery led, tech heavy model can keep taking share even as global pizza demand looks flat and category traffic softens. The Q3 beat and planned 2025 store openings support the near term growth catalyst of unit expansion, while the biggest risk remains that a stagnant pizza category and rising value competition could restrain same store sales and compress margins.

    Among recent developments, management’s target of more than 175 net new U.S. stores in fiscal 2025 stands out, especially alongside ongoing international openings. This accelerates the fortressing and global expansion story that many investors see as key to offsetting slower category growth and to making the most of Domino’s expanded reach on delivery platforms like DoorDash and Uber Eats.

    Yet, against this expansion push, the risk that flat pizza demand and tougher price competition limit Domino’s ability to grow ticket size is something investors should be aware of...

    Read the full narrative on Domino's Pizza (it's free!)

    Domino's Pizza's narrative projects $5.6 billion revenue and $720.0 million earnings by 2028. This requires 5.5% yearly revenue growth and about a $123 million earnings increase from $597.1 million today.

    Uncover how Domino's Pizza's forecasts yield a $496.65 fair value, a 15% upside to its current price.

    Exploring Other Perspectives

    DPZ 1-Year Stock Price Chart
    DPZ 1-Year Stock Price Chart

    Four members of the Simply Wall St Community value Domino’s between US$348.61 and US$496.65, underscoring how far views can diverge. You can set those opinions against the risk that a flat pizza category and rising value pressure may cap longer term revenue growth and earnings momentum.

    Explore 4 other fair value estimates on Domino's Pizza - why the stock might be worth as much as 15% more than the current price!

    Build Your Own Domino's Pizza Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.