Domino's Pizza's (DPZ) stuffed crust sales are meeting internal expectations so far, according to early checks at 52 stores for tracking future adoption trends, RBC Capital Markets said in a note Monday.
More than half, or 56%, of the stores believe stuffed crust is boosting traffic, while 15% were unsure if increased activity stems from promotional deals or the stuffed crust itself, and 29% do not see an uptick in demand, the investment firm said.
While it is still too early to draw firm conclusions, estimates suggest stuffed crust could influence both US same-store sales and earnings per share this year, providing initial guardrails around potential financial impact, RBC said.
The company's long-term growth outlook iterates a 1% to 2% industry growth plus around 1% in annual share gains, according to the note.
Management is adding new equipment to improve stuffed crust production speed and sees other growth drivers like a potential DoorDash (DASH) partnership once Uber's (UBER) exclusivity expires on May 1, RBC analysts noted.
RBC maintained an outperform rating and $500 price target for Domino's Pizza stock.
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