Restaurants Weekly: Party food

Research evidence excerpt

Restaurants Weekly: Party food

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Restaurants Industry

Price Objective Change

America’s pizza palate 26 July 2026

DPZ’s off-calendar reporting cycle means that its 2Q results (ended 6/14/26) come out Equity

before those of its restaurant peers, a trickle before the next two weeks’ deluge. But the United States

unique circumstances surrounding the pizza industry suggest investors will continue to Restaurants

interpret DPZ’s results – flattish 2Q US SSSG -- as symptomatic of persistent headwinds Sara Senatore

facing the pizza category. While we’re more optimistic on the health of the segment, we Research Analyst

concede that DPZ’s decision not to lower SSSG guidance has increased confidence BofAS+1 646 743 2110

among bears who anticipate another SSSG miss (even if depressed valuation suggests sara.senatore@bofa.com

that’s broadly expected). One insight that does appear to have broader implications is Grace Nguyen

Research Analyst

CFO Sandeep Reddy’s comment that YTD QSR pizza category growth is coming from the BofAS

dine-in channel – which DPZ doesn’t participate in. If that’s the case, it would suggest +1 646 855 2849 grace.nguyen@bofa.com

that consumers continue to prioritize the experiential part of dining out and that the

emphasis many limited-service restaurants (Chipotle and Cava to name two) are placing

on hospitality is not misplaced. Stock symbol key:

BROS: Dutch Bros

Premium pies? BLMN: Bloomin Brands

In a timely turn of events, last week’s franchisee meetings included operators in the CAKE: The Cheesecake Factory

Papa John’s system, one of DPZ’s largest chain competitors. Not surprisingly given CAVA: Cava

recent SSSG trends, PZZA operators’ industry outlooks are subdued, but they take some CBRL: Cracker Barrel