BMO Capital analyst Andrew Strelzik reiterated a Buy rating on Domino’s Pizza today and set a price target of $540.00.
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Andrew Strelzik’s rating is based on Domino’s Pizza’s better-than-expected quarterly performance and strategic initiatives that position the company well for future growth. The company’s earnings per share exceeded market expectations, driven by strong U.S. comparable sales and improved supply chain margins. Despite acknowledging some industry softness, Strelzik sees Domino’s as a compelling opportunity due to its visible sales drivers and potential for multiple expansion.
Domino’s has demonstrated robust growth across various income cohorts, with notable gains in both carryout and delivery segments. The company’s strategic promotional efforts, such as the extended Best Deal Ever, have been profitable and continue to drive traffic, supported by its scale and franchisee economics. With reaffirmed guidance for operating profit growth and store openings, Strelzik maintains a favorable outlook on Domino’s ability to achieve its growth targets, making it an attractive investment opportunity.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $536.00 price target.