Domino's Pizza (DPZ) PT Raised to $465 at Stifel, 'Will Uber Start A Domino Effect On Delivery Sales?'

Stifel analyst Chris O\'Cull raised the price target on Domino's Pizza (NYSE: DPZ) to $465.00 (from $450.00) while maintaining a Buy rating.

The analyst comments "Domino's reported better-than-expected 2Q adjusted EPS results driven primarily by lower-than-expected costs. Domestic comps were in-line with our flattish expectation, but international comps, up 3.6%, were higher than we projected (+2.5%). However, there were several takeaways from the conference call that we believe are more relevant to the fundamental outlook than the 2Q results, including 1) domestic franchisees are on track to earn at least $150k in-store EBITDA in 2023 (vs. $139k in 2022); 2) operating margin improvement should continue to build in 2H23; 3) aggregator partnerships have the potential to generate $1B in incremental domestic sales; 4) long-term outlook that was lowered in 4Q22 did not contemplate a partnership with 3P marketplaces; and 5) the loyalty program relaunch should encourage incremental frequency."

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