TD Cowen Downgrades Domino's Pizza (DPZ) to 'Hold', Reduces PT to $460

Domino’s Pizza, Inc. (NASDAQ:DPZ) is one of the best restaurant stocks to buy now.

On January 5, 2026, Domino’s Pizza, Inc. (NASDAQ:DPZ) faced a more cautious stance from Wall Street. TD Cowen analyst Andrew Charles downgraded the stock from “Buy” to “Hold” and reduced his price target from $500 to $460. While Charles remains content with the company’s underlying momentum, his downgrade is driven by a strategic shift that has leaned more heavily into value than previously anticipated. He also highlighted the company’s robust same-store sales (comps) growth in the U.S. Q2 2025 comps in the U.S. were up 3.40% and international comps (ex-FX) were up 2.40%. The trend accelerated in Q3 2025 to 5.20% domestically and 1.70% internationally. However, Charles noted that the company’s increasing focus on lower price-point offerings could soften margin and earnings upside compared to earlier expectations. Accordingly, the analyst maintains a balanced risk-reward view.

In contrast, a more constructive longer-term view on Domino’s Pizza, Inc. (NASDAQ:DPZ) was shared by Bernstein in early December, driven by value-led share gains. The firm reiterated a $490.00 price target with a “Market Perform” rating. The firm’s view is based on management’s confidence in continued traction from value initiatives. Bernstein expects a new value program to launch in 2026, accompanied by higher advertising spend to capture incremental demand. Other catalysts cited by the analyst included the full rollout of DoorDash in the third quarter and gains from the ongoing loyalty program. Management also sees these factors significantly supporting U.S. comparable sales into 2026.

Domino’s Pizza, Inc. (NASDAQ:DPZ) owns a global franchise-driven pizza network.

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