Although the consensus view is that margins at Australia-based Domino’s Pizza Enterprises are now structurally lower versus pre-Covid levels, analysts at Morgan Stanley say the company still has a path to margin recovery. They say margin expansion could be driven by restructuring benefits, improvements in store profitability and food-cost normalization, estimating that elevated food prices have created a greater than 2% margin headwind for Domino’s over the last few years. The analysts, which are bullish on Domino’s, believe the coming months will be crucial for Domino’s investors. “We think FY24 will be an inflection point for key share price drivers,” they say.