Domino's Pizza (DPZ) has a more favorable same-store-sales setup for the upcoming quarters supported by healthy traffic momentum, improved check management, and low expectations, Oppenheimer said in a note Monday.
Multiple compression is likely driven by sunken investor sentiment and reduced SSS expectations in 2026, but trends indicate sentiment has troughed with a path for improvement, according to the note.
The company's CEO transition in October is a positive dynamic, providing the opportunity to re-establish yearly SSS targets and eliminate an overhang to the investment narrative, analysts wrote.
Same-store sales have the potential to accelerate as mix headwinds fade and overall comps ease through mid-2027, the brokerage said.
Oppenheimer reiterated its outperform rating on the stock and price target of $415 per share.
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