09:16 AM EST, 02/21/2025 (MT Newswires) -- Domino's Pizza (DPZ) is likely to see soft comparable sales trends continue into the fiscal first quarter, but factors including menu innovation are expected to help speed up gains in the second half, Wedbush Securities said in a Friday client note.

The brokerage now estimates Domino's to report domestic same-store sales increases of 1.5% each in its fourth and first quarters, down from previous expectations for a 2% rise. In October, Domino's reported US comparable sales growth of 3% for the third quarter.

Wedbush said there's "nothing too exciting" about the company's new pasta offering, while flagging the company's less aggressive value stance. The brokerage, however, expects same-store sales to accelerate in the second half of 2025, or potentially as early as the second quarter, as a new stuffed crust offering launches and Domino's possibly enters into a partnership with DoorDash (DASH).

Wedbush analyst Nick Setyan continues to view factors including Domino's menu innovations, an expanded loyalty program and third-party delivery partnerships as drivers of near- and medium-term same-store sales growth. The brokerage maintained its estimates for international growth of 0.8% in the fourth quarter and 1.5% in the first, with potential for upside.

Domino's is scheduled to release its fourth-quarter results on Monday.

"Given our expectation of (second half) domestic (same-store sales) growth acceleration, we also view reiterated 8% operating income growth guidance in 2025 as probable despite anticipating continued domestic comp pressure into (the first quarter)," Setyan wrote in its note.

Wedbush lowered its fourth-quarter per-share earnings estimate for the company to $4.91 from $5.06 on revenue of $1.47 billion. The current consensus on FactSet is for GAAP EPS of $4.93 and sales of $1.48 billion.

The brokerage maintained its outperform rating on Domino's stock and lifted the price target to $500 from $470. "We believe a slight premium is appropriate given incremental visibility into a path towards relative top line outperformance (versus) peers," Setyan said.