Domino's Pizza's 15min chart shows RSI overbought, KDJ death cross.

According to Domino's Pizza's 15-minute chart, the RSI indicator has reached overbought levels, and the KDJ Death Cross occurred on August 25, 2022, at 12:15. This suggests that the stock price has increased rapidly and surpassed its fundamental support levels, indicating a shift in momentum towards the downside and a potential further decrease in stock price.

Domino's Pizza (DPZ) has been a resilient player in the fast-food sector, showcasing strong growth despite challenging macroeconomic conditions. The company reported robust Q2 2025 earnings, with global retail sales growing 5.6% year-over-year (YoY) and U.S. same-store sales increasing 3.4% [1]. However, recent technical indicators suggest potential downside risk for the stock.

According to the 15-minute chart, the Relative Strength Index (RSI) has reached overbought levels, indicating that the stock price has risen rapidly and may be due for a correction. Additionally, the KDJ Death Cross occurred on August 25, 2022, at 12:15, signaling a shift in momentum towards the downside [2]. These technical indicators suggest that Domino's stock price has surpassed its fundamental support levels, potentially leading to a further decrease in stock price.

While Domino's has been successful in adapting to shifting consumer trends, its valuation metrics raise concerns. The company's P/E ratio of 25.4x exceeds industry averages, suggesting potential overvaluation despite robust digital sales, which accounted for 85% of U.S. orders [1]. Free cash flow surged 43.9% to $331.7 million, supporting $150 million in share buybacks and a $1.74/share dividend. However, analysts project 6% annual earnings growth through 2030, balancing near-term risks with long-term digital and international potential [1].

For long-term investors, Domino's presents a compelling case, but they should remain vigilant about near-term margin risks and macroeconomic shifts. The recent technical indicators suggest that investors should be cautious and monitor the stock closely for any signs of a potential correction.

References:
[1] https://www.ainvest.com/news/domino-q2-earnings-assessing-long-term-growth-potential-valuation-concerns-2508/
[2] https://www.marketbeat.com/stock-ideas/3-fast-food-stocks-defying-the-odds/