NEW YORK, May 24 /PRNewswire/ -- Domino's Pizza, Inc. (DPZ: $13) has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week. DPZ carries S&P's highest investment recommendation of 5-STARS, or Strong Buy.
"Our favorable view of Domino's Pizza reflects the expected benefits we see from the company's four-pronged strategy," said Mark Basham, Equity Restaurants Analyst at Standard & Poor's Equity Research. "Namely, its ongoing reduction in debt, the early success of efforts to gain domestic market share via its New Inspired Pizza, a heightened focus on operational excellence and financial strength among its domestic franchisee base, and continuing international expansion."
Basham says his Strong Buy recommendation reflects his view that recent and likely ongoing reductions in debt outstanding, combined with domestic market share gains and continued international expansion, are likely to result in significant appreciation from recent price levels for DPZ shares. Basham also believes these factors will enable Domino's Pizza to extend its current debt facility, under which it is paying 6% fixed interest, from 2012 to 2014.
To view a video of Mr. Basham discussing DPZ, paste the following link in to your browser.
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S&P Global STARS Distribution
In North America
As of March 31, 2010, research analysts at Standard & Poor's Equity Research Services North America recommended 35.9% of issuers with buy recommendations, 52.8% with hold recommendations and 11.3% with sell recommendations.
As of March 31, 2010, research analysts at Standard & Poor's Equity Research Services Europe recommended 37.9% of issuers with buy recommendations, 39.3% with hold recommendations and 22.8% with sell recommendations.
As of March 31, 2010 research analysts at Standard & Poor's Equity Research Services Asia recommended 42.9% of issuers with buy recommendations, 49.1% with hold recommendations and 8.0% with sell recommendations.
As of March 31, 2010, research analysts at Standard & Poor's Equity Research Services globally recommended 36.9% of issuers with buy recommendations, 50.1% with hold recommendations and 13.0% with sell recommendations.
5-STARS (Strong Buy): Total return is expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.
4-STARS (Buy): Total return is expected to outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis.
3-STARS (Hold): Total return is expected to closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis.
2-STARS (Sell): Total return is expected to underperform the total return of a relevant benchmark over the coming 12 months, and the share price is not anticipated to show a gain.
1-STARS (Strong Sell): Total return is expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis.
Relevant benchmarks: In North America, the relevant benchmark is the S&P 500 Index, in Europe and in Asia, the relevant benchmarks are generally the S&P Europe 350 Index and the S&P Asia 50 Index.
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