Key Banc Initiates Coverage on Domino's Pizza

A report from Key Banc initiates coverage on Domino's Pizza

with a Hold rating. The report states, “We view both Domino's near-term outlook and long-term growth potential favorably, as outlined comprehensively in the following pages. However, we believe that shares may have limited upside potential in the near term, as investors will likely be cautious due to the fact that starting in 1Q12, the domestic system will be lapping two consecutive years of strong SSS and an impressive 260 bps improvement in operating margins from the 12.9% trough in 2008 to our estimate of 15.5% in 2011, which represents peak levels.” DPZ closed yesterday at $32.94.