If you ask three investment experts their opinion on Domino's Pizza Enterprises Ltd (ASX: DMP) shares, you may well get three different answers.
Indeed, of the 17 analyst recommendations listed on CommSec, four have Domino's stock as a strong buy, three as a moderate buy, six as a hold, one as a moderate sell, and three as a strong sell.
With earnings and profits under pressure since the boom times of 2021, when pizza delivery demand soared amid the pandemic stay at home orders, Domino's shares have crashed 83% from their September 2021 all-time highs.
Over the past 12 months, the share price is down 37%, closing yesterday at $27.01.
Though those losses have been partly mitigated by the $1.06 a share in unfranked dividends the company has paid out to eligible investors over the full year.
That's a look in the rearview.
The big question now is, has the S&P/ASX 200 Index (ASX: XJO) fast-food pizza retailer managed to turn the corner on its slumping sales, or is there more pain ahead?
The sell case for the ASX 200 pizza retailer
Shaw and Partners' Jed Richards counts among the investment pros with a sell recommendation on Domino's shares (courtesy of The Bull).
"Shares in the fast food giant have fallen from $36 on February 10 to trade at $26.59 on March 20," Richards said.
Turning to the company's half-year results, Richards noted:
Underlying group earnings before interest and tax of $100.6 million in the first half of fiscal year 2025 were down 6.7% on the prior corresponding period. Network sales were down 2.9% and same store sales fell 0.6%.
Challenges in Japan and France are impacting group performance. Markets in Asia and Europe are struggling.
And Richards doesn't believe the recovery for Domino's shares is in the bag just yet.
"Investor confidence has been impacted and a recovery in performance will take time," he said. "Other stocks are more appealing at this stage of the cycle."
The buy case for Domino's shares
As mentioned up top, there's a lot of divergence among the experts when it comes to Domino's stock right now.
Among those with a bullish outlook for Domino's is Family Financial Solutions' Jabin Hallihan.
After the steep sell-down in Domino's shares in the latter weeks of February, which followed the initial investor exuberance on a positive 7 February trading update, Hallihan said, "In our view, the shares are significantly undervalued and present an opportunity to buy Domino's at a discount."
Goldman Sachs is also optimistic on the outlook for the ASX 200 pizza retailer.
Following the company's half-year results, Goldman reiterated its buy rating on Domino's shares with a slightly reduced target price of $37.30.
That represents a potential upside of 38% from Wednesday's closing price of $27.01 a share, not including those upcoming dividends.
