Domino’s Shares Climb to $425 on September 16, 2025, with DoorDash Partnership

On September 16, 2025, Domino’s Pizza, Inc. (NYSE: DPZ) shares increased by 3.8 per cent in the morning trading, reaching their highest level in 6 months of up to $425 per share.

The rally follows the company’s announcement of an extended collaboration with DoorDash (NASDAQ: DASH), which has sparked investor excitement regarding Domino’s potential to expand into the competitive food delivery market.

The changing behaviour of consumers toward convenience and online ordering would put this strategic alliance in a better position to capture a larger share of the global food delivery market, which is valued at over a trillion dollars.

With Wall Street analysts revising their price targets and the market overall boosted by the hope of a rate cut by the Federal Reserve, Domino’s Pizza stock is riding a wave of optimism.

A Game-Changing Partnership with DoorDash

The stock was catalysed by the further partnership with DoorDash, the most popular food delivery company in the U.S. In accordance with the new deal, Domino will become a more integral part of the DoorDash application, enabling its customers to place orders for pizzas as they would order any other restaurant item.

This expansion, unlike the original partnership of 2024, which delivered through Domino drivers, allows DoorDash drivers to take up part of the orders, especially in the highly-demanded regions or areas with shortages of staff. Promotional campaigns, including discounts to subscribers of DoorDash DashPass, are part of the deal to promote customer engagement.

In a September 16 investor call, Domino CEO Russell Weiner made it clear why the partnership would be effective by saying: This is about bringing the company to the customers where they are. The size and technology of DoorDash give us a boost in the digital aspect of our strengths, and with it, we are opening up new growth platforms.

The company said that 75 per cent of its U.S. revenue is already delivered through digital sales, and the DoorDash partnership will increase this number as the company will tap into the 37 million monthly active users of the platform.

The response of the market was also rapid. DoorDash stock, however, fell 0.3 per cent, with investors considering the cost of incorporating Domino’s into its ecosystem, such as possible margin pressure due to collective delivery charges.

Nevertheless, Goldman Sachs analysts increased their Domino target to $480, above the previous one of 450-400, amid the expected increase of the same store sales by 2-3 per cent in 2026 as a result of the partnership. The company retained its Buy rating, with the focus being on the fact that Domino could capitalise on the use of third-party delivery without de-branding its name.

Navigating a Competitive Delivery Landscape

The food delivery industry has turned into a war field, with Uber Eats, DoorDash, and other smaller services such as Grubhub competing with each other. Domino’s choice to invest in DoorDash once again is made as rivals such as Pizza Hut and Papa John’s also increase their third-party delivery alliances.

In the past, Domino used its own delivery network, based on which it could control customer experience, but as a result of this type of operation, it was limited in its reach to the markets with problems of driver shortages. Using the partnership with DoorDash, Domino’s will be able to expand without investing a lot of capital in its own delivery service.

This is a very timely move because consumer expenditure on dining is also not very low despite the inflationary pressures. In a recent study released by the National Restaurant Association, two out of every three consumers in the United States intend to spend more or spend the same on food delivery in 2025, due to the convenience and time savings.

Domino, which also focuses on value-driven promotions such as the $6.99 Mix and Match Deal, is well-positioned to capitalise on this trend. The customer retention strategy is further enhanced by the loyalty program of the company, which boasts of 32 million active members.

Financial Performance Underpins Investor Confidence

The recent stock financials of Domino’s are a good base on which the stock can be projected to rise. The company, in its Q2 2025 earnings as issued in July, recorded an increase in U.S. same-store sales by 7.1% which exceeded the expectation of Wall Street by 5.5%.

Revenue grew by 8 per cent to $1.15 billion, as a result of the high demand for its reformulated menu products, such as the New York-style pizza and loaded tots. Its operating margins had increased to 17.2, which indicated controlled cost management and efficiencies in the supply chain operations.

The company also increased its full-year guidance, which states that the company expects global retail sales to grow by 6-8% in 2025, compared with 5-7%. This is based on strong internationalisation with Domino opening 150 new stores in the second quarter, and especially in the high-growth markets such as India and Southeast Asia.

Domino’s has learned this lesson, staying afloat in the market, and unlike other competitors, it has not increased its prices to attract only high-end customers, a tactic that JPMorgan analysts saw as a masterclass of growth and price sensitivity.

Broader Market Tailwinds: Fed Rate Cut Looms

Domino is also getting a favourable market environment. Bonds are fully confident that the Federal Reserve could make a 25-basis-point reduction in rates, which is likely to be announced on September 17. The decreased interest rates will decrease the cost of borrowing to consumer-facing companies such as Domino, which has long-term debt of $5 billion.

The discretionary spending would also be fuelled by a rate reduction, which would favour the restaurant industry. This sentiment is reflected in the 0.6 percentage gained in futures trading on September 16 of the S&P 500 Consumer Discretionary Inde,x of which Domino is a constituent.

However, risks remain. The increasing labour costs and commodity prices, especially cheese and wheat, could strain margins in 2026. Moreover, the DoorDash alliance will introduce reliance on a third party, which may make it difficult to service the customers in case of delivery problems.

Other investors are also concerned that the commission charge (apparently 15-20 per cent per order) used by DoorDash could drive Domino out of business unless it is well controlled. Weiner responded to these issues and said that the company has agreed to good terms to make the partnership accretive to earnings.

Analyst Perspectives: Bullish but Cautious

The Wall Street market has many positives to say about Domino, and 22 of 30 analysts observed by Bloomberg rated the stock as a Buy. The current levels have a median price target of $465, which means that there is an upside of 9% to the current levels.

According to the analyst at Morgan Stanley, John Glass, the DoorDash acquisition will remove the risks associated with Domino’s growth story through the diversification of delivery. He also pointed out investments made by the company in AI-driven personalisation of orders that will help the company further increase customer retention.

Sceptics, in their turn, focus on the issue of valuation. Dominos is trading at a forward price-earnings ratio of 32, which is greater than that of its competitors, such as Yum!. Brands (25) and McDonald’s (22).

A report by Bernstein cautioned that the stock’s maximum growth could be constrained by any decline in demand for delivery or macroeconomic headwinds. Nevertheless, the company recognised the unmatched operational efficiency of Domino as one of its differentiators.

Good News Ahead: A Formula for Continued Growth?

With the Domino stock still reaping the benefits of its post-partnership success, the company’s long-term position depends on its performance. The DoorDash alliance, in case of success, would have millions of new customers, and the resources would be freed to innovate the menu and expand the store.

Domino has a globalisation strategy to expand its operations to 800 new stores by 2027, targeting emerging markets where pizza consumption is increasing. Its online business, which is already a market leader, will be supported by DoorDash’s data analytics, which may enhance the accuracy of orders and delivery times.

To investors, they are asking whether Domino’s Pizza is capable of sustaining its trend in a saturated market. Its growth of 3.8% on September 16 was more than the general restaurant industry, and this showed that the stock was highly confident in the market.

However, as competition intensifies their own delivery plans and inflation looms, Domino’s Pizza should be agile. To date, the DoorDash alliance has provided the firm with a new ingredient to its growth formula, which Wall Street is salivating over.