02:59 PM EDT, 09/30/2024 (MT Newswires) -- Domino's Pizza (DPZ) is well-positioned for same-store sales growth in 2025 driven by third-party delivery, loyalty programs, promotions, digital enhancements and menu innovation, UBS said in a note Monday.

The firm said there are concerns about Domino's US same-store sales deceleration in 2024 and difficult year-over-year comparisons, despite successful promotions in H2. However, the company's promotional activities and partnership with Uber Eats will contribute positively to same-store sales into 2025.

"We expect unit growth to be driven by a solid pipeline, compelling unit economics, and growing US franchisee profitability," the firm added.

Although international development faces some pressure from closures in regions like Australia, key markets such as India and China continue to offer significant growth opportunities, while franchisee profitability in the US is growing, according to the note.

UBS had a buy rating for Domino's and a price target of $540.

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