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."

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

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