Domino’s Pizza downgraded at Gordon Haskett on lower long-term growth algorithm

As previously reported, Gordon Haskett analyst Jeff Farmer downgraded Domino’s Pizza to Hold from Buy with a price target of $315, down from $344. Domino’s historically had the strongest long-term growth algorithm in the global franchise peer group, but this long-term algorithm has been downwardly revised twice over the last two years and now calls for system sales growth and net unit growth metrics that "represent a middle-of-the pack peer group performance," the analyst tells investors. The firm concludes based on its work that Domino’s will be unable to easily drive a return to 6%-10% average annual system sales growth and that the company’s fundamentals are unlikely to return to pre-COVID levels.