Domino's Pizza Inc. (NYSE: DPZ) reported strong financial results in the third quarter of fiscal year 2025, highlighting robust free cash flow (FCF) growth and continued expansion both domestically and internationally.

For the quarter, Domino's revenue rose by 6.2% year-over-year to $1.147 billion, surpassing analyst projections. U.S. same-store sales increased by 5.2%, driven by the success of promotional campaigns such as the "Best Deal Ever" and the launch of new menu offerings, including the parmesan-stuffed-crust pizza. Internationally, same-store sales saw a smaller increase of 1.7%. This growth, while positive, fell just short of estimates due to weaker demand in markets such as Japan and Australia.

The company's earnings per share (EPS) for the quarter reached $4.08, exceeding expectations of $3.97. In terms of store presence, Domino's achieved a net addition of 214 stores globally during the period—29 of which were opened in the United States and 185 overseas—demonstrating the brand's ongoing worldwide expansion.

Free cash flow improved markedly, rising 31.8% year-over-year to reach $495.6 million. This increase was attributed to higher net income and reduced capital expenditures. These financial improvements contributed to generally favorable analyst sentiment around Domino's valuation. As reported by Barchart and supported by Nasdaq.com, DPZ stock remains considered attractively valued, trading at $416.26 per share. The average one-year price target stands at $522.32, implying a potential price increase of around 23.12%.

Stock market activity for Domino’s on Saturday, October 18 (00:15:00 UTC) showed the following: the stock last traded at $416.26, which was a change of -$0.53 (or nearly unchanged) from the previous close. The intraday price ranged from a low of $413.20 to a high of $420.21, and the latest open price was $417.71. Trading volume reached 514,994 shares, reflecting ongoing investor interest in the company.

Industry analysts maintain a "Buy" rating for Domino’s Pizza Inc., with suggested strategies including shorting out-of-the-money (OTM) puts and buying in-the-money (ITM) calls, given the current valuation and upside potential of the stock. The company’s steady expansion, promotional ingenuity, and solid financial footing underpin a cautiously optimistic outlook among market watchers.