Is Domino's Pizza Stock Underperforming the S&P 500?

Dominos Pizza Inc delivery by- Bjoern Wylezich via iStock

With a market cap of $14.9 billion, Domino's Pizza, Inc. (DPZ) is one of the world’s largest pizza restaurant chains, headquartered in Ann Arbor, Michigan. Founded in 1960, the company has grown into a global leader in both delivery and carryout pizza, operating more than 20,000 stores across over 90 markets worldwide.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and DPZ perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the restaurant industry. Domino’s is widely recognized for its technology-driven approach, with a strong focus on digital ordering, delivery innovation, and customer convenience. Its business model is heavily franchise-driven, with independent franchisees operating the majority of its stores, which provides scalability and consistent cash flows.

Despite its notable strength, DPZ shares slipped 14.1% from their 52-week high of $500.55, achieved on Mar. 3. Over the past three months, DPZ stock has declined 3.7%, trailing the S&P 500 Index ($SPX), which has returned 10.9% over the same time frame.

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On a YTD basis, shares of DPZ rose 2.5%, underperforming $SPX’s YTD gains of 12.8%. Moreover, the stock has increased by 5.2% over the past 52 weeks, compared to the S&P 500’s solid 18% returns over the same period.

DPZ stock has experienced volatility recently and has been trading below its 50-day and 200-day moving averages since early September, reinforcing a downward trend. 

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Domino’s stock slipped marginally on Jul. 21 after posting mixed Q2 results. The company added 178 net new stores in the quarter, driving global retail sales up 5.5% year-over-year to $4.7 billion. Revenue grew 4.3% to $1.15 billion, narrowly topping Wall Street estimates. Additionally, U.S. same-store sales rose 3.4%, while international same-store sales increased 2.4% on a constant currency basis. However, its EPS declined 5.5% year-over-year to $3.81, missing the Street expectations. 

In the competitive arena of restaurants, Papa John's International, Inc. (PZZA) has taken the lead over DPZ in 2025, showing resilience with a 19.3% gain. However, PZZA has plunged 12.4% over the past 52 weeks, lagging behind DPZ’s modest rise. 

Nevertheless, Wall Street analysts are moderately bullish on DPZ’s prospects. The stock has a consensus “Moderate Buy” rating from the 29 analysts covering it, and the mean price target of $511.65 suggests a potential upside of 19% from current price levels.


On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.