Domino's Pizza's (DPZ) share gains amid a weak macro environment are likely to continue, with an enhanced in-store technology and upcoming brand refresh providing the company with competitive advantages, Oppenheimer said in a note Monday.
The company has gained about 100 basis points in market share annually over the last 10 years, while its competitors showed signs of fundamental weakness and store closures, according to the note.
Domino's Pizza continues to target a 3% growth in 2025 and 2026 US same store sales, with the international segment also providing a potential upside, the investment firm said.
The company's new third-party partners, product innovation, and "strong value messaging" are expected to pave the way for "healthy" same-store sales in Q4 through 2026, according to Oppenheimer.
Oppenheimer reiterated its outperform rating on Domino's Pizza, with a $530 price target.
Price: 422.28, Change: +6.01, Percent Change: +1.45