RBC Capital has cut its price target for Domino's Pizza Group PLC (LSE:DOM) to 250p from 285p, reflecting slower growth and higher costs, but it has kept its outperform rating. The shares were trading at 183p.
The broker updated its forecasts after the group cancelled its capital markets day and ahead of preliminary results due in March.
RBC said the next management team faces a tougher consumer backdrop, a slower pace of store openings and system sales growth driven more by price rises than volumes.
RBC has reduced its earnings expectations for the next two years. It cut adjusted EBITDA forecasts by just over 2% for 2026 and more than 4% for 2027, with larger downgrades at the earnings per share level after factoring in higher depreciation and interest costs.
Revenue estimates were also trimmed, partly because the rollout of new stores is now expected to slow to about 30 openings a year.
Despite the near-term caution, RBC still sees management change as a potential catalyst. A new chief financial officer joins in March, while a chief executive has yet to be appointed following Andrew Rennie’s departure last November.
RBC expects a strategic review, including whether plans for a second brand or overseas expansion remain priorities, or whether the focus shifts back to the core UK and Ireland business.
The bank said there are longer-term levers to revive growth. These include greater use of app-based marketing, personalisation and the planned rollout of a loyalty scheme, which could help lift order frequency.
Store opening rates could also recover later in the year if consumer confidence improves.
In late afternoon trading, the shares were flat at 186.8p.