UBS Reiterates Buy Rating on Domino's Pizza (DPZ)

UBS analyst Dennis Geiger reiterated a Buy rating and $540.00 price target on Domino's Pizza (NASDAQ: DPZ).

The analyst commented, "Mixed 4Q results & commentary highlighted pressured US sss and some uncertainty around the outlook for ‘25 given limited insights into upcoming sales initiatives. But better International performance, progress against existing sales plans, and a compelling slate of US sales driving initiatives still to come create a favorable setup. ’25 guidance was largely reiterated, incl. ~6% retail sales growth and ~8% operating income growth (ex. 100-200 bps FX impact), w/ 3% US sss and 1-2% International sss. '26 guidance for retail sales & op income growth is now in-line w/ '25 targets (relative to LT algorithm of 7%+ retail sales growth, 8%+ op income growth), due to the impact from DPE's '25 closures. Focus remains on ‘25 US sales initiatives and the sss trajectory, w/ multiple levers that could support sss improving to at least the 3% FY25 target. We continue to see upside for shares (~23x '26 EPS) driven by a compelling catalyst path supporting strengthening US sss, with global unit growth likely accelerating over the coming years."

For an analyst ratings summary and ratings history on Domino's Pizza click here. For more ratings news on Domino's Pizza click here.

Shares of Domino's Pizza closed at $455.64 yesterday.

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