Domino's Pizza Plunges 28% in 2026: Is It Time to Sell?
Domino's Pizza (NASDAQ:DPZ) has seen its stock price plummet by 28% in 2026, making it the worst performer among its peers and benchmarks. The Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY) is down only 7% year-to-date, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has risen by 13%. This significant drop has left Domino's Pizza shares lagging behind both benchmarks.
The company's stock price currently stands at $294.74, with McDonald's (NYSE:MCD) shares down 21% year-to-date at $237.53 and Starbucks (NASDAQ:SBUX) stock up 14% YTD at $94.11. The sharp contrast between these companies' performance underscores the complexity of Domino's Pizza's situation.
The question remains whether it is time to sell or hold onto Domino's Pizza shares. While some analysts might argue that the company's underperformance can be attributed to industry-wide pressures, others point out that Starbucks has managed to rise despite being part of the same category as Domino's Pizza and McDonald's. This divergence suggests that there may be underlying issues specific to Domino's Pizza that need to be addressed.
The next earnings report for Domino's Pizza is a critical event that could potentially change the narrative around the company's stock performance. Investors weighing their options should consider the possibility of a rebound if the category firms and the operational picture at Domino's Pizza improves.