Domino's Pizza Inc "Expect 2Q Pressures, with Focus on '26 Guide" (Buy) Geiger

Research evidence excerpt

Domino's Pizza Inc "Expect 2Q Pressures, with Focus on '26 Guide" (Buy) Geiger

50% off

EPS (UBS, diluted) (USD)

deals), marketing investment, loyalty, and 3P contributions. While near-term headwinds

12/26E

are likely to persist and comparisons are getting tougher into 2H, we anticipate UBS Cons.

sequential recovery over the longer-term supported by: still compelling everyday value, Q1 4.13 4.13

promotional offerings (including $9.99 Best Deals Ever w/ Parmesan Stuffed Crust 6/15- Q2E 3.91 4.23

6/26), further growth from DoorDash, continued benefits from the new app and loyalty Q3E 4.22 4.39

/ digital gains, and additional marketing. We also expect a focus on initiatives to improve Q4E 6.46 6.49

growth, including 'bold' pizza menu innovation, new sauces (ie Slice Sauce), potential 12/26E 18.69 19.17

expansion of chicken offerings, and additional crust platforms following Parmesan 12/27E 20.63 20.93

Stuffed Crust. We also anticipate closures at select competitors could support an 12/28E 22.89 22.73

acceleration in category market share gains for Domino's over time. We model -0.2%

Dennis Geiger, CFA

US sss for ‘26. Analyst

dennis.geiger@ubs.com

Expect solid global development; Focus on DPE and geopolitical pressures +1-212-713 9313

We model 4.6% global development for 2Q (in line w/ Cons.), including net growth of Paul Hao

31 stores in the US and 165 Int'l. We continue to expect global net store development Associate Analyst

ex. DPE to be a relative bright spot, supported by attractive unit economics, strong paul.hao@ubs.com

franchisee profitability, competitor closures, and contribution from key markets. Focus +1-201-352 1091

remains on development at DPE, including the new CEO starting in August, Nikhil Gunderia