JPMorgan upgraded Domino's Pizza to Overweight from Neutral with a $450 price target, citing steady global growth and a structurally low-cost franchise model. The firm sees the stock as attractive around current levels near $402, with shares up 0.5% in premarket trading. The upgrade reflects confidence in Domino's ability to maintain market share gains while expanding its footprint.

Domino's is posting strong U.S. unit growth, with just 23 closures among 7,186 locations over three years and 172 net openings expected in fiscal 2025. The company's international expansion, particularly in China and India, accounts for 75% of unit growth and 25% of operating income growth. JPMorgan notes that capital spending is already guided through fiscal 2027, providing visibility into future investments.

The brokerage is revising its valuation approach for global quick-service restaurant franchisors, moving away from treating McDonald's, Yum Brands, and Restaurant Brands International similarly based on free cash flow yields. Instead, JPMorgan expects wider valuation variations as business needs and reinvestment cycles diverge across the group. The firm believes Domino's resilience and global footprint warrant a premium valuation.