Domino’s Pizza Inc (NYSE:DPZ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.

According to Zacks, “Domino's shares have outpaced the industry year to date. The company’s solid brand positioning should continue to boost sales in the upcoming quarters. Also, efforts to accelerate its presence in high-growth international markets bode well. Notably, the company’s revenues and earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In fact, second-quarter 2017 marked the 25th and 94th consecutive quarter of positive same-store-sales domestically and internationally, respectively. Going forward, Domino's initiatives on the digital front, focus on re-imaging and other sales boosting strategies are expected to help sustain the momentum. However, a soft consumer spending environment in the U.S. restaurants space might limit revenue growth. Higher costs and negative currency translation are likely to hurt profits too.”

Other analysts have also recently issued research reports about the stock. Argus cut shares of Domino’s Pizza from a “buy” rating to a “hold” rating and increased their price objective for the stock from $145.00 to $183.30 in a report on Friday, August 25th. Maxim Group increased their price objective on shares of Domino’s Pizza from $186.00 to $200.00 and gave the stock a “hold” rating in a report on Thursday, June 1st. BidaskClub cut shares of Domino’s Pizza from a “strong-buy” rating to a “buy” rating in a report on Tuesday, July 18th. BTIG Research reaffirmed a “buy” rating and issued a $233.00 price objective (up previously from $213.00) on shares of Domino’s Pizza in a report on Thursday, June 1st. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $215.00 price objective on shares of Domino’s Pizza in a report on Tuesday, July 25th. Twelve equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $196.64.

Shares of Domino’s Pizza (NYSE:DPZ) traded up 0.17% during mid-day trading on Tuesday, hitting $195.95. 431,821 shares of the stock traded hands. The firm’s 50 day moving average price is $188.18 and its 200-day moving average price is $194.43. Domino’s Pizza has a 12-month low of $149.67 and a 12-month high of $221.58. The stock has a market cap of $9.46 billion, a P/E ratio of 38.94 and a beta of 0.36.

Domino’s Pizza (NYSE:DPZ) last issued its earnings results on Tuesday, July 25th. The restaurant operator reported $1.32 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.23 by $0.09. The company had revenue of $628.61 million for the quarter, compared to analysts’ expectations of $609.87 million. Domino’s Pizza had a net margin of 9.40% and a negative return on equity of 13.28%. The firm’s revenue was up 14.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.98 earnings per share. Analysts predict that Domino’s Pizza will post $5.69 earnings per share for the current year.

Domino’s Pizza declared that its Board of Directors has approved a stock repurchase program on Wednesday, August 2nd that permits the company to repurchase $1.25 billion in shares. This repurchase authorization permits the restaurant operator to purchase up to 13.5% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

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Institutional investors and hedge funds have recently made changes to their positions in the business. Commonwealth Bank of Australia boosted its holdings in shares of Domino’s Pizza by 25.0% in the second quarter. Commonwealth Bank of Australia now owns 500 shares of the restaurant operator’s stock worth $105,000 after buying an additional 100 shares during the period. IHT Wealth Management LLC boosted its holdings in shares of Domino’s Pizza by 19.5% in the first quarter. IHT Wealth Management LLC now owns 569 shares of the restaurant operator’s stock worth $105,000 after buying an additional 93 shares during the period. Toronto Dominion Bank boosted its holdings in shares of Domino’s Pizza by 12.2% in the second quarter. Toronto Dominion Bank now owns 590 shares of the restaurant operator’s stock worth $125,000 after buying an additional 64 shares during the period. Acrospire Investment Management LLC acquired a new position in shares of Domino’s Pizza in the second quarter worth about $127,000. Finally, Whittier Trust Co. of Nevada Inc. boosted its holdings in shares of Domino’s Pizza by 115.4% in the second quarter. Whittier Trust Co. of Nevada Inc. now owns 687 shares of the restaurant operator’s stock worth $145,000 after buying an additional 368 shares during the period. Institutional investors own 94.22% of the company’s stock.

Domino’s Pizza Company Profile

Domino’s Pizza, Inc is a pizza restaurant chain company. As of January 1, 2017, the Company operated in over 13,800 locations in over 85 markets around the world. The Company operates through three segments: domestic stores, international franchise and supply chain. Its basic menu features pizza products in various sizes and crust types.

Analyst Recommendations for Domino`s Pizza (NYSE:DPZ)

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