RBC Capital Markets analyst Logan Reich reiterated the Outperform rating on Domino’s Pizza Inc DPZ, with a price forecast of $500.

Domino’s will report its fourth-quarter results on 24th February, before the market opens.

The analyst remains curious about U.S. demand trends and market share, given competitors’ results, potential partnership with DoorDash, Inc, and improvements in the international business.

The analyst notes that while Uber Technologies, Inc’s exclusivity agreement ends at the end of the first quarter, a potential renewal or new partnership with DoorDash could be announced.

Per the analyst, extending Uber’s exclusivity would be negative, as investors may interpret it as a sign of weaker demand, given that DoorDash’s market share in the U.S. is roughly three times that of Uber’s.

Also Read: Yum! Brands Moves KFC’s US Headquarters To Texas In Strategic Shift

This apart, Reich notes that with Yum! Brands, Inc. already reporting and Papa John’s International, Inc. having preannounced, the interest in U.S. category growth is somewhat reduced heading into Domino’s earnings.

The analyst writes that Domino’s will continue to gain market share due to its strong value positioning and marketing advantage over “independent” pizza businesses.

However, for the fourth quarter, the U.S. same-store sales estimate is lowered to 1.0% due to softer category growth, compared to the consensus of 1.3%.

Price Action: DPZ shares are trading lower by 1.14% to $469.93 at last check Thursday.

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