DPZ Changing Our Rating on the Shares of Domino’s

By Mark Kalinowski Published on September 3, 2019 at 12:00 AM

With this report, we downgrade the shares of Domino’s (DPZ) to Neutral (from Buy). Our downgrade reflects (1) growing concerns that over the next 12-18 months, competition from third-party delivery aggregators will have a larger (i.e., worse) effect on Domino’s U.S. same-store sales than they did over the last 12-18 months, (2) our worries that the law of large numbers may have finally caught up with Domino’s U.S. following the annual +5.4% to +12.0% same-store sales gains of 2013-18, (3) rising competition from the leading fast-casual pizza concepts, particularly privately-held Blaze Pizza, whose co-founder Rick Wetzel comments “There’s a huge opportunity to go at Domino’s in particular,” and (4) the possibility of a reinvigorated Papa John’s (PZZA; Buy) down the road, given that concept’s recent hire of a new “change agent” CEO.

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Tidbits re DPZ, JACK, Tim Hortons (owned by QSR) and Blaze Pizza

By Mark Kalinowski Published on February 17, 2019 at 12:00 AM

We briefly note the following tidbits regarding Domino’s (DPZ; Buy), Jack in the Box (JACK; Not Rated), Tim Hortons (owned by Restaurant Brands International [QSR; Not Rated], and privately-held Blaze Pizza:

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A Closer Look at Privately-Held Blaze Pizza

By Mark Kalinowski Published on December 3, 2018 at 12:00 AM

We recently met with management from privately-held Blaze Pizza — President & CEO Jim Mizes and CFO Mandy Shaw, with the help of Media Relations Josh Levitt — to discuss their outlook for the nation’s leading fast-casual pizza concept. Regarding Blaze Pizza, which has stated that it aims to be the nation’s fifth-largest pizza chain by 2020, we note the following:

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