Shares in Domino’s Pizza (DPZ) were 2% less tasty today despite hopes that it is ready to get a bigger slice of sales in the U.S.
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Stuffed Crust Could be a Winner
Five-star TipRanks-rated analyst Jon Tower of Citi raised his price target on the stock to $520 from $440 and kept a Neutral rating. This is despite what he described as a “soft” Q4 and start to Q1. Instead, he said that investors have moved on to focus on DPZ “potentially adding DoorDash (DASH) as a partner and/or rolling out stuffed crust pizza at some point in 2025.” Citi believes these are both on DPZ’s menu, but Tower remains “somewhat wary” that they alone will satisfy investors, especially with concerns over international growth challenges.
Wedbush raised the firm’s price target to $500 from $470 and kept an Outperform rating on the shares. It also expects an acceleration in the second half of this year boosted by stuffed crust demand and the DoorDash link-up. Wedbush also likes DPZ’s relaunched digital ordering experience and the continued expansion of its new loyalty program.
Promotions Could Accelerate Sales
UBS also delivered a verdict on DPZ declaring that it is well-positioned to accelerate US same-store sales this year citing marketing and promotional events. You could tell it was a Friday as UBS salivated over the $9.99 Any Crust Any Toppings deal and the Mac and Cheese offering. It also talked up the group’s international potential. “We believe global store development should accelerate over the coming years in key international markets such as India and China, and a recovery from the Middle East conflict impact,” it said. UBS has a Buy rating on Domino’s stock with a $540 price target.
The notes come just days after Warren Buffett’s Berkshire Hathaway ($BRK.B) doubled its holdings in DPZ.
Is DPZ a Good Stock to Buy?
On TipRanks, DPZ has a Moderate Buy consensus based on 7 Buy, 5 Hold and 1 Sell rating. Its highest price target is $559. DPZ stock’s consensus price target is $485 implying an 5.04% upside.
