Analyst Andrew Charles from TD Cowen maintained a Buy rating on Domino’s Pizza and decreased the price target to $500.00 from $510.00.
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Andrew Charles has given his Buy rating due to a combination of factors that suggest a positive outlook for Domino’s Pizza. One of the key reasons is the company’s guidance for achieving a 3% or higher same-store sales growth by 2026, which provides a solid foundation for the stock’s performance. Despite some softening in the current quarter, management’s proactive strategies, such as focusing on profitable value offerings and innovative products like stuffed crust, are expected to drive sales and contribute positively in the coming years.
Additionally, while there is a slight adjustment in the 2025 U.S. same-store sales forecast from 3.5% to 3%, the company’s recent performance has been strong, with a notable increase in carry-out sales. Management’s efforts to sustain this momentum through initiatives like the brand relaunch and new menu items, as well as the continuation of successful promotions like the $9.99 Best Deal Ever, are seen as beneficial for franchisee profitability and overall growth. These factors collectively underpin the Buy rating, reflecting confidence in the company’s strategic direction and potential for future success.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $540.00 price target.