Todd Brooks, an analyst from Benchmark Co., maintained the Buy rating on Domino’s Pizza. The associated price target remains the same with $540.00.
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Todd Brooks has given his Buy rating due to a combination of factors that highlight Domino’s Pizza’s strong performance and strategic initiatives. The company reported better-than-expected third-quarter results, driven by the success of its Best Deal Ever value platform, which boosted transaction growth in both carryout and delivery channels without negatively impacting the sales mix. Additionally, Domino’s achieved higher revenues and profitability than anticipated, with an operating margin that surpassed consensus estimates.
Brooks also notes the positive impact of product innovations like stuffed crust pizza and the inclusion of Domino’s on the DoorDash delivery platform. The $9.99 Best Deal Ever promotion has been a significant driver of transaction growth despite challenging market conditions. Furthermore, the company is expected to benefit from favorable commodity prices, such as the decline in cheese costs, which could enhance future profitability. These factors, combined with Domino’s strategic market positioning, underpin Brooks’s positive outlook and Buy rating.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $514.00 price target.