08:05 AM EDT, 10/04/2024 (MT Newswires) -- Domino's Pizza (DPZ) is positioned for market share growth in the value-focused quick-service restaurant environment, but challenges from competitors, particularly McDonald's (MCD), may limit its progress in the latter half of 2024, Wedbush said in a note on Friday.

Wedbush has lowered its 2024 EPS estimate to $16.21 from $16.44 and its 2025 estimate to $17.83 from $18.36

The brokerage firm said that despite ongoing initiatives like UberEats expansion and a new loyalty program, the aggressive value strategies of quick-service restaurant burger chains could hinder Domino's short-term gains.

For Q3, the brokerage lowered Domino's domestic same-store sales growth to 3% from 4% for franchised and 2.5% from 3.5% for company stores, respectively.

"We have also been surprised by the lack of a stepped-up response by Domino's Pizza in the near term", said Wedbush in a note.

Wedbush lowered the price target to $470 from $510 while maintaining an 'outperform' rating.

Price: 421.00, Change: +0.11, Percent Change: +0.03