Domino's Pizza (DPZ) reported a weaker-than-expected Q4, with management anticipating a tough 2025 because of international growth pressures and weak US consumer demand, RBC Capital Markets said in a note emailed Tuesday.

The company's partnership with DoorDash (DASH) will begin after May 1, following the expiration of Uber's (UBER) exclusivity agreement, and this is expected to contribute to growth, particularly in the latter half of 2025, according to the note.

RBC said that factors such as economic conditions, more people eating at home, and competition from quick-service value offerings are expected to limit growth in the US.

Domino's supply chain margins showed significant improvement largely due to procurement productivity, and margins are expected to improve further in 2025, the firm added. The company also shifted equipment and supplies to a third-party supplier, which is a small headwind for revenue but should have little impact on margin growth.

RBC has an outperform rating on Domino's stock with a $500 price target.

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