Bank of America Lowers Domino’s Price Target to $545 and Trims EPS Forecast
Bank of America cut Domino’s Pizza’s price target from $556 to $545 and trimmed its fiscal year EPS forecast to $19.99 from $20.31 due to a higher tax rate. CEO Russell Weiner highlighted 172 net new U.S. stores and a 3% same-store sales gain, projecting U.S. retail sales to double.
1. BofA Lowers Price Target but Maintains Buy Rating
Bank of America reduced its price target on Domino’s Pizza from $556 to $545 while reiterating a Buy rating, reflecting a moderate adjustment in expectations following recent earnings.
2. Tax-Driven EPS Forecast Reduction
The firm cut its fiscal year EPS estimate to $19.99 from $20.31, attributing the downgrade to a higher anticipated tax rate after reviewing fourth-quarter results.
3. Q4 Performance Highlights
Domino’s achieved a 3% increase in U.S. same-store sales during Q4 2025, driven by growth in both delivery and carryout channels, underscoring the brand’s market resilience.
4. Growth Outlook and Store Expansion
CEO Russell Weiner expects the U.S. pizza segment to grow at historical rates and believes Domino’s can double its U.S. retail sales over time, supported by the addition of 172 net new U.S. stores in 2025.