Domino's Pizza upgraded to buy by Benchmark as loyalty program and Uber Eats partnership seen boosting sales

Domino's Pizza Inc. (DPZ) was upgraded to buy by Benchmark on Monday, with analyst Todd Brooks highlighting a better appreciation for the company's drivers of same-store sales growth heading into the new year after an upbeat investor day. Domino's management cited the successful launch of a loyalty program and the positive sales impact of a partnership with Uber Eats at the start of fiscal 2024. "Domino's did a very effective job presenting its cohesive approach to its technology platform, which appears to be on par with industry leaders Starbucks (SBUX) and Chipotle (CMG).," Brooks wrote in a note to clients. "The program is built to enhance the Domino's experience with both customers (at an increasingly personalized level) and with its employees." Brooks set a $45 price target for the stock, which is 15% above its current price. The stock was down 0.5% premarket, but has gained 14% in the year to date, while the S&P 500 has gained 20%.

-Ciara Linnane

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12-11-23 0846ET

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