AI Fuels Growth, Yet It's Not the Sole Player in the Market.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 17 2025
0mins
Source: Barron's
Concerns about AI Investment: There is a growing discourse around the potential risks associated with the significant increase in investments in artificial intelligence.
Overblown Fears: While some express fears that AI could threaten humanity, the current concerns regarding investment risks may be exaggerated.
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Analyst Views on DPZ
Wall Street analysts forecast DPZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DPZ is 488.46 USD with a low forecast of 370.00 USD and a high forecast of 545.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
12 Buy
9 Hold
1 Sell
Moderate Buy
Current: 394.880
Low
370.00
Averages
488.46
High
545.00
Current: 394.880
Low
370.00
Averages
488.46
High
545.00
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.
Buffett's Optimism for Coca-Cola and Domino's Pizza
- Coca-Cola Dividend Growth: Berkshire Hathaway's 400 million shares of Coca-Cola generated $816 million in dividends in 2025, with expectations for further increases in 2026, highlighting the company's strong cash flow and shareholder return capabilities.
- Strong Financial Performance: Coca-Cola reported a 31.9% adjusted operating margin in Q3 2025, up 120 basis points year-over-year, driven by 6% organic revenue growth, indicating a solid foundation for continued dividend increases in the future.
- Domino's Market Advantage: Added to Berkshire's portfolio in mid-2024, Domino's has shown strong same-store sales growth and effective supply chain management, with a goal of achieving 3% same-store sales growth in 2026, demonstrating resilience in a competitive market.
- Dividend Increase Potential: With an average dividend growth rate of 17.4% over the past five years and a current yield of 1.76%, Domino's is expected to raise its dividend again in the upcoming Q4 earnings report, further boosting investor confidence.
See More
Buffett Favors Stocks with Sustainable Dividends
- Coca-Cola's Dividend Potential: Coca-Cola paid $816 million in dividends in 2025, with expectations for further growth in 2026, showcasing strong dividend capacity backed by a 63-year history of increases and a reasonable payout ratio of 69% amidst stable cash flows.
- Robust Financial Performance: The company reported an adjusted operating margin of 31.9% in Q3 2025, a 120 basis point increase year-over-year, driven by 6% organic revenue growth, highlighting the strength of its brand portfolio and market adaptability.
- Domino's Growth Outlook: Buffett began acquiring Domino's shares in mid-2024, with analysts projecting an 11% rise in earnings per share for 2026, while its sub-40% payout ratio provides ample room for future dividend increases, having averaged 17.4% growth over the past five years.
- Competitive Market Advantage: Domino's achieved an 8.7% increase in carryout sales through strategic partnerships with delivery platforms and a fortressing strategy, demonstrating success in enhancing customer convenience and profitability in a competitive landscape.
See More
Warren Buffett's Investment Moves Before Retirement
- Berkshire's Investment Shift: Buffett sold approximately 464,781,994 shares of Bank of America, about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes, impacting Berkshire's investment portfolio performance.
- View on Bank of America: Despite Buffett's waning interest in Bank of America, his understanding of its interest rate sensitivity made it a top investment for nearly a decade; however, the stock's premium to book value made his selling decision particularly significant.
- Domino's Pizza Accumulation: In the five quarters leading up to his retirement, Buffett purchased nearly 3 million shares of Domino's Pizza, representing 8.8% of its outstanding shares, reflecting his confidence in the brand and its ongoing growth potential in international markets.
- Strategic Growth Initiatives: Domino's management has implemented the “Hungry for MORE” plan, leveraging technology and AI to enhance operational efficiency, demonstrating strong market adaptability and long-term growth potential, which further attracted Buffett's investment interest.
See More
Buffett Reduces Bank of America Stake While Increasing Domino's Holdings
- Reduction in BofA Shares: Buffett sold approximately 464,781,994 shares of Bank of America, representing about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes.
- Increase in Domino's Holdings: During the same period, Buffett purchased nearly 3 million shares of Domino's Pizza over five consecutive quarters, accounting for 8.8% of its outstanding shares, reflecting strong confidence in the brand and its long-term growth potential.
- Interest Rate Sensitivity of BofA: Despite the reduction in stake, Bank of America's significant sensitivity to interest rate changes remains a key attraction for Buffett, especially during the recent rate-hiking cycle and potential future rate cuts.
- International Growth of Domino's: Domino's has achieved 31 consecutive years of same-store sales growth internationally, indicating strong brand value and product acceptance globally, which further bolstered Buffett's investment confidence.
See More
Analysis of IonQ's Quantum Computing Stock Volatility
- Stock Performance: IonQ's stock has surged 277.7% over the past five years, yet it currently trades at $39.98, down 7.54% from its daily high, indicating market concerns over its high valuation.
- Technological Advantages and Challenges: IonQ's trapped-ion qubits achieved a 99.99% fidelity in 2-qubit gates, although 68% of runtime is still spent on cooling, but its performance at higher temperatures may reduce computation time and enhance competitiveness.
- Competitive Landscape: IonQ faces fierce competition from companies like Rigetti Computing, which boasts a 99.6% fidelity in its 36-qubit system but operates at speeds 1,000 times faster than IonQ, highlighting the intensifying race between speed and accuracy.
- Financial Condition: With a market cap of $16.5 billion, IonQ surpasses its competitors, yet its annual revenue stands at only $79.8 million, coupled with a $1.5 billion net loss, resulting in a staggering 142 times trailing sales ratio, prompting investors to carefully assess risks.
See More
Coca-Cola vs. Domino's Pizza: 2026 Showdown
- Coca-Cola's Steady Growth: In Q3 2025, Coca-Cola reported a 5% year-over-year sales increase, with comparable operating margins rising from 30.7% to 31.9%, demonstrating strong pricing power and efficient production, which bolstered market confidence.
- Dividend King Status: Coca-Cola has raised its dividend for 63 consecutive years, currently yielding 2.9%, attracting investors seeking stable income despite strong stock performance, further solidifying its leadership in the consumer goods sector.
- Domino's Sales Growth: Domino's reported a 6.3% year-over-year increase in global retail sales for Q3 2025, with comparable sales up 5.2%; although the market has not fully recognized this growth, its resilience in a high-inflation environment may set the stage for future gains.
- Market Competition Pressure: Despite Domino's lack of significant growth last year, its current P/E ratio of 24 is slightly higher than Coca-Cola's 23, reflecting market caution regarding its future potential, which may influence investor decisions.
See More
Buffett's Optimism for Coca-Cola and Domino's Pizza
- Coca-Cola Dividend Growth: Berkshire Hathaway's 400 million shares of Coca-Cola generated $816 million in dividends in 2025, with expectations for further increases in 2026, highlighting the company's strong cash flow and shareholder return capabilities.
- Strong Financial Performance: Coca-Cola reported a 31.9% adjusted operating margin in Q3 2025, up 120 basis points year-over-year, driven by 6% organic revenue growth, indicating a solid foundation for continued dividend increases in the future.
- Domino's Market Advantage: Added to Berkshire's portfolio in mid-2024, Domino's has shown strong same-store sales growth and effective supply chain management, with a goal of achieving 3% same-store sales growth in 2026, demonstrating resilience in a competitive market.
- Dividend Increase Potential: With an average dividend growth rate of 17.4% over the past five years and a current yield of 1.76%, Domino's is expected to raise its dividend again in the upcoming Q4 earnings report, further boosting investor confidence.
See More
Buffett Favors Stocks with Sustainable Dividends
- Coca-Cola's Dividend Potential: Coca-Cola paid $816 million in dividends in 2025, with expectations for further growth in 2026, showcasing strong dividend capacity backed by a 63-year history of increases and a reasonable payout ratio of 69% amidst stable cash flows.
- Robust Financial Performance: The company reported an adjusted operating margin of 31.9% in Q3 2025, a 120 basis point increase year-over-year, driven by 6% organic revenue growth, highlighting the strength of its brand portfolio and market adaptability.
- Domino's Growth Outlook: Buffett began acquiring Domino's shares in mid-2024, with analysts projecting an 11% rise in earnings per share for 2026, while its sub-40% payout ratio provides ample room for future dividend increases, having averaged 17.4% growth over the past five years.
- Competitive Market Advantage: Domino's achieved an 8.7% increase in carryout sales through strategic partnerships with delivery platforms and a fortressing strategy, demonstrating success in enhancing customer convenience and profitability in a competitive landscape.
See More
Warren Buffett's Investment Moves Before Retirement
- Berkshire's Investment Shift: Buffett sold approximately 464,781,994 shares of Bank of America, about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes, impacting Berkshire's investment portfolio performance.
- View on Bank of America: Despite Buffett's waning interest in Bank of America, his understanding of its interest rate sensitivity made it a top investment for nearly a decade; however, the stock's premium to book value made his selling decision particularly significant.
- Domino's Pizza Accumulation: In the five quarters leading up to his retirement, Buffett purchased nearly 3 million shares of Domino's Pizza, representing 8.8% of its outstanding shares, reflecting his confidence in the brand and its ongoing growth potential in international markets.
- Strategic Growth Initiatives: Domino's management has implemented the “Hungry for MORE” plan, leveraging technology and AI to enhance operational efficiency, demonstrating strong market adaptability and long-term growth potential, which further attracted Buffett's investment interest.
See More
Buffett Reduces Bank of America Stake While Increasing Domino's Holdings
- Reduction in BofA Shares: Buffett sold approximately 464,781,994 shares of Bank of America, representing about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes.
- Increase in Domino's Holdings: During the same period, Buffett purchased nearly 3 million shares of Domino's Pizza over five consecutive quarters, accounting for 8.8% of its outstanding shares, reflecting strong confidence in the brand and its long-term growth potential.
- Interest Rate Sensitivity of BofA: Despite the reduction in stake, Bank of America's significant sensitivity to interest rate changes remains a key attraction for Buffett, especially during the recent rate-hiking cycle and potential future rate cuts.
- International Growth of Domino's: Domino's has achieved 31 consecutive years of same-store sales growth internationally, indicating strong brand value and product acceptance globally, which further bolstered Buffett's investment confidence.
See More
Analysis of IonQ's Quantum Computing Stock Volatility
- Stock Performance: IonQ's stock has surged 277.7% over the past five years, yet it currently trades at $39.98, down 7.54% from its daily high, indicating market concerns over its high valuation.
- Technological Advantages and Challenges: IonQ's trapped-ion qubits achieved a 99.99% fidelity in 2-qubit gates, although 68% of runtime is still spent on cooling, but its performance at higher temperatures may reduce computation time and enhance competitiveness.
- Competitive Landscape: IonQ faces fierce competition from companies like Rigetti Computing, which boasts a 99.6% fidelity in its 36-qubit system but operates at speeds 1,000 times faster than IonQ, highlighting the intensifying race between speed and accuracy.
- Financial Condition: With a market cap of $16.5 billion, IonQ surpasses its competitors, yet its annual revenue stands at only $79.8 million, coupled with a $1.5 billion net loss, resulting in a staggering 142 times trailing sales ratio, prompting investors to carefully assess risks.
See More
Coca-Cola vs. Domino's Pizza: 2026 Showdown
- Coca-Cola's Steady Growth: In Q3 2025, Coca-Cola reported a 5% year-over-year sales increase, with comparable operating margins rising from 30.7% to 31.9%, demonstrating strong pricing power and efficient production, which bolstered market confidence.
- Dividend King Status: Coca-Cola has raised its dividend for 63 consecutive years, currently yielding 2.9%, attracting investors seeking stable income despite strong stock performance, further solidifying its leadership in the consumer goods sector.
- Domino's Sales Growth: Domino's reported a 6.3% year-over-year increase in global retail sales for Q3 2025, with comparable sales up 5.2%; although the market has not fully recognized this growth, its resilience in a high-inflation environment may set the stage for future gains.
- Market Competition Pressure: Despite Domino's lack of significant growth last year, its current P/E ratio of 24 is slightly higher than Coca-Cola's 23, reflecting market caution regarding its future potential, which may influence investor decisions.
See More
