Evercore ISI holds Domino’s Pizza stock Outperform, $480 target

Published 02/04/2025, 15:30
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On Wednesday, Evercore ISI maintained a positive stance on Domino’s Pizza (NASDAQ:DPZ) shares with an Outperform rating and a price target of $480. The firm’s analysts highlighted the newly announced marketing partnership between Domino’s and DoorDash (NASDAQ:DASH), which is already in its pilot phase and is expected to extend nationwide by early May. According to InvestingPro data, DoorDash has demonstrated robust growth with revenue increasing 24.17% over the last twelve months, and maintains a strong financial health rating. This collaboration is designed to enable Domino’s to reach new customers, with a focus on expanding their presence in rural and suburban areas.

The partnership is anticipated to contribute to Domino’s same-store sales (SSS), with projections suggesting a potential sales mix impact of approximately 6 percentage points and a SSS benefit of around 4 percentage points. This is based on DoorDash’s network being roughly 2.5 times larger than that of Uber (NYSE:UBER) Eats, which could significantly enhance Domino’s market reach.

Evercore ISI’s analysts believe that the integration with DoorDash will assist Domino’s in tapping into new customer segments and bolstering its delivery service capabilities. The firm has reiterated its $480 price target for Domino’s stock, which reflects a 24 times multiple on the estimated 2026 earnings per share (EPS). DoorDash’s strong balance sheet, with more cash than debt and excellent liquidity ratios, suggests it’s well-equipped to support this strategic initiative. For deeper insights into both companies’ financials and more exclusive analysis, explore the comprehensive Pro Research Reports available on InvestingPro.

The partnership is seen as a strategic move for Domino’s as it continues to innovate in the competitive food delivery space. By leveraging DoorDash’s extensive delivery network, Domino’s aims to increase its accessibility to customers who may not have been as easily reachable through its own delivery infrastructure.

Domino’s Pizza has not made any public statements regarding the financial details of the partnership with DoorDash. The company’s performance and the success of the partnership will be closely monitored by investors and industry analysts, especially as the nationwide rollout approaches in the coming month.

In other recent news, Domino’s Pizza has announced a partnership with DoorDash to enhance its delivery services. This collaboration allows customers to place orders through the DoorDash app, with Domino’s drivers handling the deliveries. A trial phase is already underway in select locations, with a full U.S. rollout planned for May 2025 and an expansion to Canada later in the year. The partnership aims to tap into DoorDash’s extensive customer base, particularly in suburban and rural areas.

In related developments, DoorDash has also expanded its payment options by enabling SNAP/EBT payments at over 16,000 Dollar General (NYSE:DG) locations. This initiative nearly doubles the number of stores on DoorDash’s platform accepting SNAP/EBT, broadening access to grocery delivery for beneficiaries across 48 states. Additionally, DoorDash has been under analyst scrutiny, with FBN Securities initiating coverage with an Outperform rating and a $230 price target.

Jefferies maintains a Buy rating on DoorDash, reiterating a $250 price target, citing the company’s successful international expansion and adaptation of its U.S. strategy overseas. These moves underscore DoorDash’s efforts to solidify its market position and growth prospects in various sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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