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, "2Q results & commentary highlighted better than expected US & international sss despite lingering macro pressures, with compelling initiatives supporting further improvement and solid momentum into 2H and beyond. '25 guidance was reiterated, including ~8% operating income growth, driven by global retail sales growth ~in line w/ '24 (~6% ex. FX), including 3% US sss and 1-2% Int'l sss, assuming macro conditions don't deteriorate. '25 US sss of 3% now appear achievable (or beatable) given: Parmesan Stuffed Crust, the DoorDash partnership, value & promotions, loyalty, and carryout momentum, in addition to contributions from other key growth pillars. Better than expected International sss (+2.4%) were encouraging and driven by solid growth in key markets, w/ potential upside to '25 guidance for 1-2% sss should macro & geopolitical pressures not materialize in 2H. We were surprised DPZ shares didn't react more favorably to strong (and better than expected) US and International sss trends, given 2H25 comp trends are likely moving higher and key initiatives are resonating. But we believe strong 2H US sss momentum and better visibility into catalysts to support still solid sales trends and market share gains in '26 should support upside."

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Shares of Domino's Pizza closed at $462.24 yesterday.

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