Buy Rating for Domino’s Pizza: Growth, Innovation, and Strategic Partnerships Fueling Optimistic Outlook

Analyst David Palmer of Evercore ISI maintained a Buy rating on Domino’s Pizza (DPZ – Research Report), retaining the price target of $560.00.

David Palmer has given his Buy rating due to a combination of factors that suggest a strong outlook for Domino’s Pizza’s financial performance. Palmer’s analysis indicates that Domino’s can maintain a growth rate of over 4% in U.S. same-store sales and achieve long-term double-digit growth in earnings per share. Key drivers for this positive forecast include improvements in labor availability and operational productivity, an effective rewards program that encourages frequent customer engagement, strategic menu innovations and limited-time offerings at value price points, and a significant boost from partnerships with third-party delivery services such as DoorDash and Uber Eats, which are expected to contribute to sales growth.
Palmer’s confidence in Domino’s is underscored by the company’s ability to withstand broader industry headwinds, with an expectation of continued traffic-led growth in both carryout and delivery segments. The active loyalty customer base has seen a substantial year-over-year increase, and ongoing menu introductions, like the New York Style pizza, alongside aggressive value promotions, are anticipated to drive sales. The Outperform rating and a target price of $560, which is set at a premium valuation of 31 times the projected 2025 earnings, reflect the company’s robust near-term growth prospects compared to its peers and the broader fast-food industry.

Palmer covers the Consumer Cyclical sector, focusing on stocks such as Chipotle, McDonald’s, and Domino’s Pizza. According to TipRanks, Palmer has an average return of 8.3% and a 64.72% success rate on recommended stocks.

In another report released yesterday, BTIG also reiterated a Buy rating on the stock with a $580.00 price target.

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Domino’s Pizza (DPZ) Company Description:

Domino’s Pizza, Inc. is a pizza company, which operates a network of company-owned and franchise-owned stores in the U.S. and international markets. It operates though the following three segments: U.S. Stores, International Franchise and Supply Chain. The U.S. Stores segment consists primarily of franchise operations. The International Franchise segment comprises of a network of franchised stores. The Supply Chain segment operates regional dough manufacturing and food supply chain centers. The company was founded by James Monaghan and Thomas Stephen Monaghan in 1960 and is headquartered in Ann Arbor, MI.