Domino's Pizza Enterprises (ASX:DMP) has executed a successful refinancing with more "generous" covenants, which mitigates balance sheet concern and provides flexibility to execute a turnaround, according to a Thursday Jefferies note.

The company on Thursday said it secured oversubscribed binding commitments for AU$1.05 billion in new multi-currency debt facilities to refinance its existing borrowings.

The investment firm thinks that a modest reduction in interest cost is also "likely," but the company still needs to do a lot of work to improve its unit economics and reinvigorate sales.

Jefferies noted that the pizza restaurant chain continues to perform in other master franchisees' territories.

Sales improvement is not expected to be reported at the Nov. 12 meeting, but cost out should be quantified and could be a positive catalyst, the note added.

Jefferies kept a buy rating on Domino's Pizza Enterprises with a price target of AU$30.