Domino’s Pizza Enterprises’ New Menu Shows Innovation

Domino’s Pizza Enterprises’ new menu item doesn’t shift the dial on the Australian fast-food franchiser’s earnings but does show innovation and consistency in strategy, Citi analyst Sam Teeger says. He tells clients in a note that the so-called Meltzz looks akin to a toasted sandwich, which could cater to the solo-diner and snack segments in which the company has historically underperformed. The move shows that the ASX-listed company has improved its approach to inflation compared with its earlier unpopular delivery surcharge, he adds. Citi has a buy rating and A$61.10 target price on the stock, which is up 0.9% at A$57.13.

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