Domino's Pizza Faces Favorable Same-Store-Sales Setup, Oppenheimer Says

Domino's Pizza (DPZ), Lucid Group (LCID), and Cheetah Net Supply Chain (CTNT) hit 52-week lows. DPZ reported weaker Q1 earnings and lowered sales guidance, citing macroeconomic challenges. LCID's deliveries fell due to supplier issues, raising concerns about its production targets. CTNT announced a reverse stock split to stabilize its capital structure. DPZ and LCID shares have declined 19% and 43% YTD, respectively, while CTNT has dropped 97%.

Baird downgraded Chipotle (CMG) to Neutral, cutting its price target to $40, citing slower growth and higher reinvestment needs. Domino's (DPZ) and Black Rock Coffee Bar (BRCB) were also downgraded. Darden (DRI) was upgraded to Outperform with a $250 target. Baird favors Cava (CAVA), Starbucks (SBUX), and others with strong unit economics and growth potential.

FSSAI issued over 150 notices to food companies, e-commerce platforms, and restaurant chains for misleading claims, false advertising, and labeling non-compliance. Actions include product seizures and license suspensions. Companies like Amazon, Flipkart, KFC, McDonald's, Pizza Hut, Domino's, and Costa Coffee are involved. Some firms have started taking corrective measures.

Baird downgraded Chipotle (CMG), Domino's (DPZ), and Black Rock Coffee Bar (BRCB) to Neutral, citing slower growth and competitive pressures. It upgraded Darden (DRI) to Outperform, praising its strong fundamentals. Price targets were adjusted for each. Baird also initiated coverage of Brinker (EAT) and Jersey Mike's with Outperform ratings, and named Cava (CAVA), Brinker, Starbucks (SBUX), and Dutch Bros (BROS) as top picks.

FSSAI issued 150 notices to food companies, including Nestle India, PepsiCo, and Coca-Cola India, for misleading ads, false claims, and labeling violations. The regulator also took action against e-commerce platforms and food service establishments, suspending five Domino's licenses and canceling one Amazon warehouse license.

Maharashtra’s Food and Drug Administration suspended licenses of four Domino’s outlets after inspectors found grease residue and insect infestations, and suspended one Pizza Hut outlet for missing expiry dates, according to a Reuters note. The crackdown follows recent federal regulator actions. Jubilant FoodWorks and Sapphire Foods did not comment; Domino’s Pizza Inc. and Yum Brands did not respond.