BTIG Trims Domino's (DPZ) Price Target, Cites Same-Store Sales Growth Concerns

Domino’s Pizza, Inc. (NASDAQ:DPZ) is included among the 14 Best Warren Buffett Dividend Stocks to Buy.

On February 19, BTIG lowered its price recommendation on Domino’s Pizza, Inc. (NASDAQ:DPZ) to $500 from $530. It reiterated a Buy rating on the stock. The firm pointed to concerns about the company’s ability to consistently achieve its stated goal of 3% annual same-store sales growth.

Despite those concerns, management continues to focus on expanding its footprint. Domino’s ended the third quarter with 21,750 locations worldwide. That total includes 214 new restaurant openings during the quarter and 748 over the past year. Most of that growth came from overseas, with 588 new international locations added in the last 12 months. The company’s franchise-heavy structure plays a key role in its expansion strategy. About 99% of Domino’s restaurants are franchised, allowing the company to grow without bearing the full cost of building and maintaining new stores. Instead, Domino’s collects an upfront franchise fee and earns ongoing royalty payments tied to store sales. It also generates revenue by supplying franchisees with ingredients and other necessary products.

This franchise-driven approach makes Domino’s an asset-light business, which supports strong free cash flow generation. In the first three quarters of 2025, the company produced $495.6 million in free cash flow. Management returned most of that amount, $397.2 million, to shareholders through dividends and share repurchases.

Domino’s also has a consistent track record of increasing its dividend each year. This is often viewed as an encouraging sign, since companies are generally reluctant to reduce payouts due to the negative reaction it can trigger in the market. As a result, regular dividend increases are widely seen as a signal of management’s confidence in the company’s financial strength and long-term outlook.

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

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