This Pizza Chain Gets Price Target Bumps From Bullish Analysts, Read Why

Wedbush analyst Nick Setyan reiterated an Outperform rating on the shares of Domino’s Pizza Inc DPZ and raised the price target from $370 to $400.
The analyst the company’s Q3 same-store sales growth came in above what investors expected.
A number of near-term catalysts, including an improvement in delivery driver shortage, have increased the visibility for same-store sales growth, added the analyst.
Setyan said refranchising of 28% of company stores in Q4 renders margin headwinds even less relevant and means lower ongoing Capital expenditure needs.
He also said since both U.S. and International net unit additions missed expectations in Q3, near-term growth constraints remain.
Stephens & Co analyst Joshua Long reiterated an Equal-Weight rating on the shares of Domino’s Pizza and raised the price target to $400 from $370.
The analyst said Domino’s reported 3Q22 results included relatively in-line revenues driven by stronger-than-expected domestic comps and relatively in-line international trends.
A backdrop of inflation and operational pressures weighed on margins during the quarter. However, the analyst is encouraged by the relative improvement in Domino’s Y/Y trends on a sequential basis.
Looking forward, improving labor retention along with the combined benefit of operational tools and incremental menu price in 4Q could help to continue closing the gap, cited Long.
Price Action: DPZ shares are trading lower by 4.13% at $319.27 on the last check Friday.

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