James Wheatcroft, an analyst from Jefferies, maintained the Buy rating on Domino’s Pizza (DOM – Research Report). The associated price target remains the same with p380.00.
James Wheatcroft has given his Buy rating due to a combination of factors that reflect Domino’s Pizza’s steady performance and strategic initiatives. The company’s first-quarter results align with previous expectations, showing a slight deceleration in like-for-like sales and orders, primarily due to the timing of Easter. Despite this, Domino’s outperformed competitors like Just Eat Takeaway, which reported a decline in orders, whereas Domino’s saw a modest increase.
Furthermore, Domino’s has maintained its EBITDA guidance for the fiscal year, indicating confidence in meeting market expectations. The company has also initiated the second phase of its loyalty program, which is beginning to drive incremental orders. Additionally, Domino’s is trading at a price-to-earnings ratio significantly below its pre-COVID average, suggesting potential value. The mention of ‘accretive opportunities’ and the potential introduction of a second brand also contribute to the positive outlook, supporting the Buy rating.