Yahoo Finance Live anchors discuss BMO's note on Domino's Pizza and the outlook for pizza chains throughout football season.
BRAD SMITH: It's Friday so it's time for a pizza party. We are following two analysts upgrades today. One for Domino's out of BMO. And one from Wedbush for FuboTV.
Let's start with Domino's here because there's a lot to really look into here, particularly as we're seeing the stock react by about 3%. They've set a new price target. $430 is that new price target. And they've got an outperform rating on the stock.
There's been a lot of chatter around Domino's over the past couple of sessions. We had also seen even more from Deutsche Bank. They had lowered their price, actually. Their price target and now $373. So kind of some mixed reviews here coming in on the pies, if you will.
But this larger kind of annexation to some of the kind of restarts of social functions and events. Domino's Pizza, of course, continues to be one of the core brands that is a net beneficiary of events coming back together. The start of football season even, even though the partnerships with different leagues, those are highly-coveted partnerships.
And for Domino's, it's a larger question of, how will they continue to navigate through everything from some of the input costs for just making a pizza or menu innovation, perhaps? I will not-- we won't get into the menu innovation conversation here today. But I think for Domino's and where the mixed-- the mix takes have been, there is still a lot of opportunity for leaning into the digital customer and that annexation that they've really pioneered that connection point in the pizza category with, too.
JULIE HYMAN: What do you eat when you're watching football?
BRAD SMITH: What do I eat when I'm watching football? Usually wings.
JULIE HYMAN: Pizza? Not--
BRAD SMITH: Wings.
JULIE HYMAN: Yeah, pizza?
BRAD SMITH: Tater-- I love tater tots. I love tater tots when I'm watching football.
JULIE HYMAN: See, I don't think about pizza and football in my brain. But I'm not a football fan, so. I think about wings and football.
BRAD SMITH: Yeah, my first--
JULIE HYMAN: Like, nachos and football.
BRAD SMITH: Nachos and football, that's good. My first ever job was actually at a sports grill where every Sunday people would just line up, get the wings out of West Chester, Pennsylvania--
JULIE HYMAN: See--
BRAD SMITH: --Stadium Grill. And--
JULIE HYMAN: --there you go.
BRAD SMITH: --yeah, it was all about the wings there.
JULIE HYMAN: Oh, I'm getting an affirmation from our producer who is a big football fan, nachos and football is good. Thank you very much, Val.