Competitive Analysis of Domino's Pizza and Red Robin
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 29 2026
0mins
Source: NASDAQ.COM
- Domino's Market Leadership: As of 2025, Domino's operates over 22,100 locations globally, generating nearly $4.9 billion in revenue and approximately $602 million in net income, showcasing its strong profitability and stability in the delivery market.
- Red Robin's Transformation Challenges: Red Robin manages around 475 restaurants in 2025, reporting approximately $1.2 billion in revenue, a 3% decline from the previous year; however, its shift to a franchise-heavy model by divesting 116 company-owned locations indicates efforts to improve liquidity and financial health.
- Competitive Pressures and Financial Risks: Domino's faces intense competition from Yum! Brands and Papa John's, with $4.8 billion in debt requiring stable cash flow for servicing, potentially limiting financial flexibility; meanwhile, Red Robin's debt-to-equity ratio stands at 4.4x and its current ratio at 0.4, posing challenges in meeting short-term financial obligations.
- Investment Outlook Comparison: While Red Robin appears cheaper based on its P/S ratio, Domino's offers a more attractive valuation relative to future earnings estimates, and its consistent profitable growth and strong brand position make it a better choice for long-term investors.
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Analyst Views on DPZ
Wall Street analysts forecast DPZ stock price to rise
15 Analyst Rating
6 Buy
8 Hold
1 Sell
Moderate Buy
Current: 305.910
Low
370.00
Averages
464.83
High
556.00
Current: 305.910
Low
370.00
Averages
464.83
High
556.00
About DPZ
Domino’s Pizza, Inc. is a pizza company with a significant business in both delivery and carryout. The Company operates through three segments: U.S. stores, international franchise, and supply chain. The U.S. stores segment is comprised primarily of its franchise operations, which consists of franchised stores located in the United States. The segment also operates a network of United States Company-owned stores. The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets. The supply chain segment primarily includes the distribution of food, equipment and supplies to stores from the Company’s supply chain center operations in the United States and Canada. It is primarily a franchisor, with approximately 99% of its global stores owned and operated by its independent franchisees. In its international markets, the Company generally grants geographical rights to the Domino’s Pizza brand to master franchisees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Domino's Pizza Expands Market Share Amid Challenges
- Market Share Growth: Domino's Pizza is projected to capture 23.3% of the U.S. quick-service pizza market by 2025, up from 22.5% last year, demonstrating strong performance in delivery and takeout with shares of 32.9% and 19.6%, respectively.
- Sales Growth Challenges: Despite a 0.9% increase in U.S. same-store sales in Q1, international comps fell by 0.4%, indicating the impact of macroeconomic pressures on consumer spending, with competitor Papa John's also facing sales declines.
- Expansion Strategy: While waiting for economic conditions to improve, Domino's is actively pursuing expansion, adding 964 locations over the past year to exceed 22,300 total, with 790 being international restaurants, showcasing its capital-efficient franchising model.
- Investor Outlook: Despite sluggish sales, Domino's strong market position and expansion strategy suggest that when consumer spending rebounds, the company is well-positioned for a sales recovery, offering significant upside for patient investors.
See More
Dividend Stock Investors Eye Domino's Shares
- Investor Attention: Domino's Pizza (NASDAQ: DPZ) shares are attracting dividend stock investors' interest, even though the analyst team did not include it in the current best stock picks, indicating a cautious market outlook on its future performance.
- Signal Resurgence: Similar to the 'Double Down' signal for Nvidia in 2009, a 'Total Conviction' signal is now appearing for a company that is only 1/100th the size of Nvidia, suggesting a renewed market interest in potential investment opportunities in smaller firms.
- Return Comparison: According to Motley Fool, their Stock Advisor's average return is 918%, significantly outperforming the S&P 500's 208%, highlighting the importance of selecting quality stocks, despite Domino's not making the cut.
- Community Support: The Motley Fool investment community, built by individual investors, provides the latest investment advice and stock recommendations; while Domino's is not among the recommended stocks, it remains a focus for Motley Fool, underscoring its significance in the market.
See More
Domino's Stock Price Surge Attracts Attention
- Stock Price Increase: As of the afternoon of July 1, 2026, Domino's (DPZ) shares rose by 2.43%, indicating a positive market sentiment towards its future performance, which may attract more investor interest.
- Investor Interest: The rise in stock price has piqued the interest of dividend stock investors in Domino's, reflecting market recognition of its stable earnings, potentially driving further capital inflow into the company.
- Market Reaction: This stock price movement may be linked to the company's recent earnings report or strategic adjustments, prompting investors to monitor upcoming financial data to assess sustainability.
- Future Outlook: Domino's stock performance could influence its competitive position in the fast-food industry, and if the upward trend continues, it will enhance brand image and attract more long-term investors.
See More
Berkshire's New Strategy Post-Buffett Retirement
- Leadership Transition: Warren Buffett's retirement on December 31, 2025, has led Greg Abel to reshape Berkshire Hathaway's $332 billion investment portfolio, demonstrating the new leadership's decision-making style and market adaptability.
- Diverse Investment Sell-off: Abel quickly sold off 16 positions, including Domino's Pizza, which, despite achieving international same-store sales growth for 32 consecutive years, faced a recent 0.4% decline that may have diminished its attractiveness.
- Increased Google Investment: In the first quarter, Abel tripled Berkshire's stake in Alphabet's Class A shares by 200% and opened a new position in Class C shares, reflecting strong confidence in the AI sector and its future growth potential.
- AI Strategic Investment: Alphabet announced an $80 billion equity offering, with Berkshire participating by purchasing $5 billion of each share class, further solidifying its investment in Alphabet to over $29 billion, indicating the company's focus on AI technology and its strong pricing power in the advertising market.
See More
Abel Reshapes Berkshire Hathaway's Investment Portfolio
- Portfolio Restructuring: Following his appointment as CEO, Abel swiftly reshaped Berkshire Hathaway's $332 billion investment portfolio, completely exiting 16 positions in the first quarter, including Domino's Pizza, indicating a strict adherence to value investing principles.
- Reason for Domino's Exit: Despite Domino's Pizza achieving international same-store sales growth for 32 consecutive years, it experienced a 0.4% decline in the first quarter, which may have led Abel to exit due to concerns over its valuation, reflecting a strong focus on performance metrics.
- Significant Stake in Alphabet: In the first quarter, Abel tripled Berkshire's stake in Alphabet's Class A shares and opened a new position in Class C shares, increasing its total investment in Alphabet to over $29 billion, making it a top-five holding, showcasing confidence in the AI sector's growth potential.
- AI Investment Outlook: Alphabet plans to fund its AI strategy through an $80 billion equity offering, with Berkshire participating by purchasing $5 billion of each share class at a modest discount, which not only enhances Berkshire's portfolio but also underscores its commitment to future growth opportunities.
See More
Market Underestimates Domino's Pizza Potential
- Digital Transformation: Domino's Pizza enhances customer experience and order efficiency by strengthening its digital ordering system in an inflationary environment, which is expected to drive sales growth further.
- Pricing Strategy: The company adopts a low-price strategy to attract more consumers, and despite rising costs, this approach helps maintain market share and strengthen competitiveness.
- Smart Promotions: By implementing smart promotional activities, Domino's can accurately target customer segments, thereby increasing conversion rates and optimizing marketing expenditures.
- Profitability Assessment: Although the current P/E ratio is around 16x, analysts believe the market's expectations for its future profitability remain conservative, potentially underestimating its long-term growth potential.
See More
Domino's Pizza Expands Market Share Amid Challenges
- Market Share Growth: Domino's Pizza is projected to capture 23.3% of the U.S. quick-service pizza market by 2025, up from 22.5% last year, demonstrating strong performance in delivery and takeout with shares of 32.9% and 19.6%, respectively.
- Sales Growth Challenges: Despite a 0.9% increase in U.S. same-store sales in Q1, international comps fell by 0.4%, indicating the impact of macroeconomic pressures on consumer spending, with competitor Papa John's also facing sales declines.
- Expansion Strategy: While waiting for economic conditions to improve, Domino's is actively pursuing expansion, adding 964 locations over the past year to exceed 22,300 total, with 790 being international restaurants, showcasing its capital-efficient franchising model.
- Investor Outlook: Despite sluggish sales, Domino's strong market position and expansion strategy suggest that when consumer spending rebounds, the company is well-positioned for a sales recovery, offering significant upside for patient investors.
See More
Dividend Stock Investors Eye Domino's Shares
- Investor Attention: Domino's Pizza (NASDAQ: DPZ) shares are attracting dividend stock investors' interest, even though the analyst team did not include it in the current best stock picks, indicating a cautious market outlook on its future performance.
- Signal Resurgence: Similar to the 'Double Down' signal for Nvidia in 2009, a 'Total Conviction' signal is now appearing for a company that is only 1/100th the size of Nvidia, suggesting a renewed market interest in potential investment opportunities in smaller firms.
- Return Comparison: According to Motley Fool, their Stock Advisor's average return is 918%, significantly outperforming the S&P 500's 208%, highlighting the importance of selecting quality stocks, despite Domino's not making the cut.
- Community Support: The Motley Fool investment community, built by individual investors, provides the latest investment advice and stock recommendations; while Domino's is not among the recommended stocks, it remains a focus for Motley Fool, underscoring its significance in the market.
See More
Domino's Stock Price Surge Attracts Attention
- Stock Price Increase: As of the afternoon of July 1, 2026, Domino's (DPZ) shares rose by 2.43%, indicating a positive market sentiment towards its future performance, which may attract more investor interest.
- Investor Interest: The rise in stock price has piqued the interest of dividend stock investors in Domino's, reflecting market recognition of its stable earnings, potentially driving further capital inflow into the company.
- Market Reaction: This stock price movement may be linked to the company's recent earnings report or strategic adjustments, prompting investors to monitor upcoming financial data to assess sustainability.
- Future Outlook: Domino's stock performance could influence its competitive position in the fast-food industry, and if the upward trend continues, it will enhance brand image and attract more long-term investors.
See More
Berkshire's New Strategy Post-Buffett Retirement
- Leadership Transition: Warren Buffett's retirement on December 31, 2025, has led Greg Abel to reshape Berkshire Hathaway's $332 billion investment portfolio, demonstrating the new leadership's decision-making style and market adaptability.
- Diverse Investment Sell-off: Abel quickly sold off 16 positions, including Domino's Pizza, which, despite achieving international same-store sales growth for 32 consecutive years, faced a recent 0.4% decline that may have diminished its attractiveness.
- Increased Google Investment: In the first quarter, Abel tripled Berkshire's stake in Alphabet's Class A shares by 200% and opened a new position in Class C shares, reflecting strong confidence in the AI sector and its future growth potential.
- AI Strategic Investment: Alphabet announced an $80 billion equity offering, with Berkshire participating by purchasing $5 billion of each share class, further solidifying its investment in Alphabet to over $29 billion, indicating the company's focus on AI technology and its strong pricing power in the advertising market.
See More
Abel Reshapes Berkshire Hathaway's Investment Portfolio
- Portfolio Restructuring: Following his appointment as CEO, Abel swiftly reshaped Berkshire Hathaway's $332 billion investment portfolio, completely exiting 16 positions in the first quarter, including Domino's Pizza, indicating a strict adherence to value investing principles.
- Reason for Domino's Exit: Despite Domino's Pizza achieving international same-store sales growth for 32 consecutive years, it experienced a 0.4% decline in the first quarter, which may have led Abel to exit due to concerns over its valuation, reflecting a strong focus on performance metrics.
- Significant Stake in Alphabet: In the first quarter, Abel tripled Berkshire's stake in Alphabet's Class A shares and opened a new position in Class C shares, increasing its total investment in Alphabet to over $29 billion, making it a top-five holding, showcasing confidence in the AI sector's growth potential.
- AI Investment Outlook: Alphabet plans to fund its AI strategy through an $80 billion equity offering, with Berkshire participating by purchasing $5 billion of each share class at a modest discount, which not only enhances Berkshire's portfolio but also underscores its commitment to future growth opportunities.
See More
Market Underestimates Domino's Pizza Potential
- Digital Transformation: Domino's Pizza enhances customer experience and order efficiency by strengthening its digital ordering system in an inflationary environment, which is expected to drive sales growth further.
- Pricing Strategy: The company adopts a low-price strategy to attract more consumers, and despite rising costs, this approach helps maintain market share and strengthen competitiveness.
- Smart Promotions: By implementing smart promotional activities, Domino's can accurately target customer segments, thereby increasing conversion rates and optimizing marketing expenditures.
- Profitability Assessment: Although the current P/E ratio is around 16x, analysts believe the market's expectations for its future profitability remain conservative, potentially underestimating its long-term growth potential.
See More
