Domino's Pizza Inc. (DPZ) received an upgrade to a buy rating from Benchmark on Monday. Analyst Todd Brooks noted a better appreciation for the company's drivers of same-store sales growth heading into the new year following an upbeat investor day.
Loyalty Program and Uber Eats Partnership
During the investor day, Domino's management highlighted the successful launch of a loyalty program and the positive sales impact of its partnership with Uber Eats at the beginning of fiscal 2024. This new program aims to enhance the Domino's experience for both customers and employees.
Brooks praised Domino's technology platform, stating that it appears to be on par with industry leaders such as Starbucks (SBUX) and Chipotle (CMG). The cohesive approach presented by Domino's ensures an increasingly personalized level of service for customers and employees alike.
Brooks has set a $45 price target for Domino's stock, representing a 15% increase from its current price. While the stock was down 0.5% premarket, it has gained 14% year-to-date, outperforming the S&P 500 (+0.41%), which has gained 20%.