Domino's Earnings: Loyalty and Strong Value Position Pizza Chain Well Despite Challenging Backdrop

Wide-moat Domino's remains positioned to outperform the broader US restaurant industry in a value-sensitive environment, but we think the shares are currently unappetizing for investment. We expect only modest changes to our 2024 expectations for $4.67 billion in sales (up 1%) and $15.98 in earnings per share (down 3%) after digesting fourth-quarter earnings and plan a low-single-digit percentage increase in our $387 fair value estimate after incorporating the impact of time value.