NEW YORK, July 5, 2026, 09:04 EDT
- UBS lowered its price targets on Domino’s Pizza and PepsiCo but stuck with Buy ratings for both stocks, citing short-term sales headwinds as the reason. The firm said the long-term story isn’t broken.
- The new price targets still suggest about 20% upside for both names at their last quoted prices before the U.S. holiday weekend.
- Domino’s trades at a lower multiple but faces more sales risk, while PepsiCo offers a bigger payout base and a more gradual adjustment.
UBS Group NYSE:UBS cut targets for Domino’s Pizza, Inc. NASDAQ:DPZ and PepsiCo, Inc. NASDAQ:PEP, giving investors a tighter choice between a lower-priced pizza name facing soft traffic and a bigger beverage and snack stock trading for sluggish North America growth.
UBS analyst Dennis Geiger lowered his price target on Domino’s to $375 from $425 but maintained a Buy rating, calling the shares “attractive risk/reward.” UBS’s Peter Grom trimmed his target on PepsiCo to $172 from $186, also staying at Buy, with growth worries in the North American foods business lingering. TipRanks
U.S. markets were closed Friday for the Independence Day holiday. Trading resumes Monday. Domino’s last traded at $311.66, putting its market cap around $10.37 billion and trailing P/E at 17.9. PepsiCo traded at $144.22, giving it a market cap close to $197.73 billion and a trailing P/E of 22.6.
| Company | Latest quoted price | Market value | Trailing P/E | UBS target cut | Implied upside |
|---|---|---|---|---|---|
| Domino’s Pizza NASDAQ:DPZ | $311.66 | $10.37 bln | 17.9x | UBS lowered target from $425 to $375 | 20.3% |
| PepsiCo NASDAQ:PEP | $144.22 | $197.73 bln | 22.6x | Target goes from $186 to $172 | 19.3% |
What’s interesting is how Domino’s and PepsiCo now have about the same upside—around 20%—even though Domino’s price target just got cut by 11.8% and PepsiCo’s by 7.5%. Domino’s selloff earlier took care of a lot of the downside. So now, investors are watching the next same-store sales update instead of the target move.
Domino’s is down around 16% and trades about 18 times earnings, a bit higher than the 16 times cited by The Motley Fool last week, though it’s still cheaper than PepsiCo. The lower valuation comes with risks—Domino’s faces more pressure from weaker low-income demand and pizza discounting.
Domino’s digital ordering and delivery tech were spotlighted in a July 5 ad-hoc-news piece as the pizza chain grows its reach. Company data shows more than 22,300 stores worldwide in over 90 markets by the end of Q1, with 99% franchised. Over 85% of U.S. retail sales will be digital in 2025.
| Metric | Domino’s Pizza | PepsiCo |
|---|---|---|
| Q1 net revenue / retail sales base | Revenue came in at $1.15 bln; global retail sales hit $4.74 bln | Net revenue at $19.44 bln |
| Q1 core growth measure | Global retail sales rose 3.4% ex-FX | Organic revenue up 2.6% |
| U.S. pressure point | U.S. same-store sales added 0.9% | PepsiCo Foods North America organic revenue moved up 1% |
| International line | Same-store sales ex-FX edged down 0.4% | International organic revenue climbed 5.5% |
| Capital return | Board cleared new $1.0 bln buyback | Plans about $8.9 bln in cash returns for 2026 |
Domino’s reported first-quarter numbers that back up the UBS price target cut. Global retail sales were up 3.4% excluding currency moves. But U.S. same-store sales rose just 0.9%. International same-store sales slipped 0.4%. CEO Russell Weiner called out “positive order count and market share growth” in the U.S. Domino’s Pizza
PepsiCo’s issue is different. Net revenue was up 8.5% in the first quarter, with organic revenue rising 2.6%. The company kept its 2026 forecast for organic revenue growth at 2% to 4%, and core constant-currency EPS growth at 4% to 6%. CEO Ramon Laguarta said commercial moves, brand building and affordability efforts “aided results.” Securities and Exchange Commission
Domino’s is facing a couple of tests as it shakes up the top job. Joe Jordan, who runs the company’s U.S. business and is chief operating officer, will move up to CEO on Oct. 1. TD Cowen’s Andrew Charles called the change “orderly” but told Reuters the timing surprised him, with U.S. same-store sales struggling. Reuters
For investors, it’s pretty clear. Domino’s trades at a lower multiple and could gain if more people buy pizza. PepsiCo pays bigger cash returns and is more global, but its North America foods business still needs to show volumes will keep up after years of higher prices.
Domino’s plans to put out its Q2 numbers and extra materials at 6:05 a.m. ET on July 20, with a webcast set for 8:30 a.m. The announcement is at .
