11 Most Promising Restaurant Stocks to Buy According to Hedge Funds

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2. Domino’s Pizza, Inc. (NASDAQ:DPZ)

Domino’s Pizza, Inc. (NASDAQ:DPZ) is one of the most promising restaurant stocks.

TheFly reported on February 25 that Guggenheim lowered its price target for DPZ to $440 from $450 while keeping a Neutral rating on the shares. The firm revised its valuation strategy to a 2027 basis, raised its 2027 EPS estimate to $20.85, and maintained its 2026 EPS forecast at $19.60 in response to the fourth-quarter results.

Earlier on February 23, Domino’s Pizza, Inc. (NASDAQ:DPZ) released its financial results for the fourth quarter and full fiscal year 2025. During the fourth quarter, global retail sales rose 4.9%, excluding currency effects, while U.S. same-store sales advanced 3.7%. International comparable sales increased 0.7% over the same period. The company also recorded global net store growth of 392 locations during the quarter. Operating income climbed 8.0% year over year, reflecting improved operational performance.

For the full fiscal year 2025, global retail sales increased 5.4%, while U.S. same-store sales grew 3.0% and international comparable sales expanded 1.9%. Domino’s added a net 776 stores worldwide during the year. Operating income for the full year rose 8.5%, highlighting steady financial momentum. In addition, the company’s Board of Directors approved a 15% increase in its quarterly dividend, raising the payout to $1.99 per share.

Domino’s Pizza, Inc. (NASDAQ:DPZ) is a global pizza delivery and carryout company with thousands of restaurants worldwide, known for fast service, online ordering, and a wide range of pizzas and sides.

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