Domino's Pizza Enterprises' (ASX:DMP) positive sales growth in the UK despite weak market conditions suggests that the Domino's system is not broken, Jefferies said in a Tuesday note.

The management is satisfied with franchisee economics, but the firm has "a huge amount of work" to do to lift its own unit economics, which will help drive growth.

The management also continues to believe that carryout has the potential to be around 50% of total orders in the long term. The delivery order counts declined 3.4% while carryout orders grew 1.7%. Carryout currently represents around 35% of total orders.

The investment firm recommended a buy rating on Domino's Pizza Enterprises with a price target of AU$30 per share.