BofA Trims Domino’s Target, Keeps Buy Call

Bank of America (BAC) has reduced its price objective for Domino’s Pizza, Inc. to $545 from $556 while reiterating a Buy rating on the stock. The change follows a review of the company’s most recent earnings results, including its fourth-quarter 2025 performance.

As part of the update, the bank’s analyst lowered the firm’s fiscal year earnings per share estimate for Domino’s to $19.99 from $20.31. The revision was attributed mainly to expectations for a higher tax rate, rather than to changes in the company’s operating outlook.

Despite the reduced target and EPS forecast, the continued Buy recommendation signals that Bank of America (BAC) remains positive on Domino’s shares. Domino’s is also cited as one of the “13 Best March Dividend Stocks to Buy” in the coverage that highlighted the new target.

During the company’s Q4 2025 update, CEO Russell Weiner addressed questions over whether the U.S. pizza market is slowing. He rejected the notion of a downturn, saying that pizza continues to demonstrate resilience and remains a growing category in the broader restaurant landscape.

Weiner said he expects the quick-service pizza segment to keep expanding at its historical pace in 2026 and beyond. His comments conveyed confidence in both the overall category and Domino’s competitive positioning within it.

Looking further ahead, Weiner described a long-term opportunity for Domino’s in its home market. He said he believes the company has the potential to double its U.S. retail sales over time, citing Domino’s business model and strategy as key supports for that ambition.

Reviewing full-year 2025 results, Weiner noted that Domino’s achieved growth in both its carryout and delivery businesses in the United States. He said this performance indicated that the company’s strategy is effective and that its operations remain strong across channels.

Domino’s opened 172 net new stores in the U.S. over the year, expanding its domestic footprint. Same-store sales in the U.S. increased by 3%, which the company said contributed to additional market share gains in the quick-service pizza segment.

The company operates globally with a focus on pizza delivery and carryout and organizes its business into three main segments: U.S. stores, international franchise, and supply chain. This structure supports both its domestic growth and its international franchise network.

In addition to the updated target and outlook for Domino’s, the research that discussed the stock also compared its prospects with those of certain artificial intelligence companies. While acknowledging Domino’s potential as an investment, the commentary suggested that some AI stocks may offer greater upside and lower downside risk.

Domino’s inclusion in lists such as the “13 Best March Dividend Stocks to Buy” places it within a broader set of income-oriented opportunities tracked by analysts. At the same time, investors are being directed to consider other themes, including AI-related names and onshoring beneficiaries, alongside consumer-focused companies like Domino’s.