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Domino's Pizza investor day a 'turning point' - TD Cowen

Published 11/27/2023, 08:35 AM
Updated 11/27/2023, 08:37 AM
© Reuters.  Domino's Pizza (DPZ) investor day a 'turning point' - TD Cowen

The Domino's Pizza (NYSE:DPZ) price target was raised to $430 from $410 by TD Cowen analysts on Monday, ahead of the Outperform-rated company's investor day on December 7.

Analysts told investors that the firm is bullish on DPZ's U.S. turnaround, with the investor day "a turning point" they expect will mark an acceleration in U.S. comps.

"We model above-consensus 2024-25E U.S. SSS & a return to peak store-level cash flows in 2025 to help the development narrative," wrote the analysts.

"We argue the key for the 12/7 investor day is providing greater detail on the green shoots of self-help initiatives to instill confidence in efforts," they added.

Furthermore, the firm said proprietary survey data indicates superior value perceptions for Domino's compared to pizza delivery peers, which they believe is an important dynamic in an environment where they anticipate consumers will continue to seek out value offerings from restaurants.

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