STOCKS | Baird Raises Domino’s Pizza Rating to Outperform, Lifts Price Target to $400

On November 13, Baird upgraded Domino’s Pizza to Outperform from Neutral and raised its price target to $400 from $320, a 25% increase; shares rose as much as 2.5% early Friday. According to Sina Finance, analyst Chris O’Cull said that after recent meetings with management, Baird saw a clearer outlook for same-store sales and franchisee profitability. Although orders had continued to grow, average ticket had been under pressure from fewer items per customer transaction, longer-running promotions and limited menu price adjustments. Domino’s is shortening promotions and introducing menu items to encourage add-on purchases rather than relying directly on price increases. These changes improved average ticket sequentially in the third quarter, and it is expected to rise further in the fourth quarter. Baird said Domino’s need not accelerate order growth further: maintaining positive order growth while stabilizing average ticket could improve same-store sales and franchisee profits. While weak operating performance in 2026 could weigh on new-store expansion in 2027, Baird said the risk had largely been priced in and a lower sales comparison base could support a recovery.