Domino's Pizza: 5 Reasons Why This Analyst Is No Longer Bullish

Domino’s Pizza Inc's (NASDAQ:DPZ) stock could have limited upside potential due to continued softness in the pizza delivery category and five company-related issues, according to TD Cowen.

The Domino’s Pizza Analyst: Analyst Andrew Charles downgraded the rating from Buy to Hold, while cutting the price target from $500 to $460.

The Domino’s Pizza Thesis: The company is unlikely to achieve U.S. same-store sales growth of 3% in 2026, Charles said in the downgrade note.

Check out other analyst stock ratings.

The analyst mentioned five concerns that led to the downgrade:

• Domino’s is unlikely to "overpower category softness" via drivers of Parmesan Stuffed Crust and third-party delivery, as customers below overly price sensitive.
• Sales from third-party aggregator platforms like DoorDash Inc (NASDAQ:DASH) and Uber Technologies Inc's (NYSE:UBER) are likely to slow in 2026.
• Innovative menu launches are unlikely to drive upside in 2025
• While a competitor’s closure or acquisition is possible, it could take time.

The company "lacks pricing power amid a struggling low-income consumer environment, while the price promotional pizza delivery category also challenges pricing power," he further wrote.

DPZ Price Action: Shares of Domino’s Pizza had declined by 3.1% to $412.09 at the time of publication on Monday.

Read More:

• Papa John’s Expands Footprint With Major Refranchising Deal

Image: Shutterstock