Domino's Pizza (DPZ) could benefit from improving US sales, continued market share gains, menu launches, delivery-platform growth and international store openings, with current valuation leaving room for upside, UBS said in a note Monday.

UBS said it expects US same-store sales to rise 0.5% in Q3, above the 0.2% consensus estimate, helped by promotions, new menu items and continued growth through Uber (UBER) and DoorDash (DASH).

The investment firm expects sales trends to improve further as comparisons become easier, while new products such as the Domino personal pizza could help attract more lunch customers.

Domino's strategy should remain largely unchanged through its CEO transition and the company should continue targeting mid- to high-single-digit operating income growth in 2026, excluding currency effects, according to the note.

UBS kept its buy rating and $385 price target, saying Domino's valuation looks attractive given its potential for stronger sales and market share gains.

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