Wells Fargo Cuts Domino's Pizza Price Target to $320

Wells Fargo lowered its price target on Domino’s Pizza shares (NYSE:DPZ) to $320 from $350 while maintaining an Equal Weight rating, pointing to weaker-than-expected third-quarter comparable sales and lowered long-term growth targets. The adjustment follows a difficult period for the fast-food chain, which has seen its stock decline 28% year-to-date.

"Domino's is a 'show-me story' following the third-quarter results," according to an Investing.com report detailing the analyst note.

Earnings Beat Overshadowed by Guidance Cuts

The reduced price target comes despite Domino's Pizza reporting third-quarter 2026 earnings of $4.60 per share, beating the forecasted $4.36. Revenue for the quarter rose to $1.18 billion, edging past the estimated $1.17 billion.

However, the company simultaneously reduced its fiscal 2026 comparable sales and unit growth outlook. Franchisees have grown increasingly cautious about 2026 unit openings as they navigate higher financing costs, increased promotional expenses, and rising third-party delivery fees.

Leadership Transition and Market Pressures

The lowered guidance arrives alongside a leadership transition, with new CEO Joe Jordan taking over as the company's near-term strategy works to regain momentum. Wells Fargo noted that management's ability to execute under the new leadership will dictate whether the stock can recover from its current valuation levels.

Along with operational headwinds, the restaurant industry faces broader consumer questions, including potential impacts from the growing popularity of GLP-1 weight-loss drugs on overall food demand and ordering habits.

Valuation and Stock Performance

Domino's Pizza shares currently trade near their 52-week low of $282, carrying a trailing price-to-earnings ratio of 16.8. The sharp year-to-date decline reflects investor anxiety over slowing domestic same-store sales and the heavier capital expenditure required for franchise expansion in a high-interest-rate environment.