Domino’s Pizza (DPZ) shares are likely to gain further thanks to accelerating growth and solid catalyst path, UBS said in a report Tuesday.
“DPZ remains a top pick and we believe further upside exists for one of the few restaurants with accelerating [same store sales] and unit growth, positive traffic, a compelling catalyst path with potential ’25 earnings beats, and opportunity for further multiple expansion,” UBS analysts, including Dennis Geiger, said.
Adding to the upbeat outlook, UBS said it expects the partnership with Uber Eats to make deliveries in the US and multiple international markets to help drive sales growth this year.
A recent UBS Evidence Lab’s Quick Service Restaurant survey also indicated solidly positive visit intent, outperforming both pizza peers and many large QSR brands on multiple value related attributes, according to the report.
“Survey results suggest DPZ is positioned to maintain momentum given solid value scores, promos that are resonating, impactful innovation and improved loyalty contribution,” the analysts said.
UBS kept its buy rating on the stock while raising its price target to $570 from $526.