Street View: Value deals bring diners to Domino's but sales stay muted

By Reuters News

** Domino's Pizza DPZ.O on Tuesday scaled back its full-year sales forecasts, warning that US and International same-store sales would remain muted as growing inflationary pressures tighten consumer wallets

** Median PT of 32 brokerages covering stock is $367.50 - data compiled by LSEG

TRAFFIC GAINS OFFSET BY SMALLER ORDERS

** BTIG ("buy", PT: $425) says Domino's continued to grow traffic and take market share despite sluggish consumer spending, though customers are still ordering fewer items per transaction

** TD Cowen ("hold", PT: $320) says co is still struggling to grow ticket/order values as lower-income consumers manage their checks, and is looking for more dramatic changes to the company's strategy in a difficult pizza market

** Jefferies ("hold", PT: $320) says sales growth remains muted despite continued transaction growth, with consumers ordering fewer items and management growing more cautious on near-term US demand

** Morningstar says DPZ's value-focused promotions are attracting lower-income customers and driving traffic gains, though smaller check sizes are hurting sales growth and franchisee profitability

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