BofA Cuts Domino's (DPZ) Target to $545 While Keeping Bullish Rating

Domino’s Pizza, Inc. (NASDAQ:DPZ) is included among the 13 Best March Dividend Stocks to Buy.

On February 25, BofA lowered its price recommendation on Domino’s Pizza, Inc. (NASDAQ:DPZ) to $545 from $556. It reiterated a Buy rating on the shares. The analyst said the firm reduced its fiscal year EPS forecast to $19.99 from $20.31, mainly due to a higher expected tax rate. The adjustment came after reviewing the company’s latest earnings results.

Domino’s reported its Q4 2025 performance, and CEO Russell Weiner addressed concerns about the direction of the US pizza market. He pushed back on the idea that the category is slowing down. He said pizza continues to show resilience and remains a growing segment. Weiner said he expects the quick-service pizza category to keep expanding at its historical pace in 2026 and beyond. His comments reflected confidence in both the broader market and Domino’s position within it.

He also spoke about the company’s long-term opportunity. Weiner said he believes Domino’s has the potential to double its US retail sales over time. He pointed to the company’s business model and strategy as key reasons behind that outlook. Looking back at 2025, Weiner said Domino’s delivered growth in both its carryout and delivery businesses in the U.S. He said this performance showed that the company’s strategy is working and that its operations remain strong.

Domino’s opened 172 net new stores in the U.S. during the year. Same-store sales increased 3%, which helped the company gain additional market share.

Domino’s Pizza, Inc. (NASDAQ:DPZ) operates as a global pizza company with a strong presence in both delivery and carryout. Its business is organized into three segments: U.S. stores, international franchise, and supply chain.

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