Domino's Pizza Seen Offering Improved Stock Setup, Oppenheimer Says

MT Newswires Live07-21 23:12

Domino's Pizza (DPZ) offers an improved stock setup as better-than-feared Q2 results suggest bearish investor expectations may be too negative, Oppenheimer said in a Monday note.

Q2 US same-store sales rose 0.1%, exceeding depressed buy-side expectations of a 1% to 2% decline, driven by meaningful order count growth, the investment firm said.

Management is focused on improving ticket trends in H2 while maintaining positive traffic drivers and launching an "incremental new product" in Q3, Oppenheimer said.

International same-store sales continue to be affected by Domino's strategy to reduce lower-margin transactions but Oppenheimer said it sees a path to improvement as the company refreshes its value strategy under its new CEO.

Oppenheimer maintained its outperform rating on Domino's Pizza and lowered its price target to $415 from $465.

Price: 330.68, Change: +1.71, Percent Change: +0.52

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