Morgan Stanley has Domino's Pizza for more dough

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Morgan Stanley has rated Domino’s Pizza shares as Overweight after the fast food group increased its profit guidance for 2016.

Domino’s Pizza yesterday announced strong first quarter results and upgraded its full year guidance to 25% growth over last year’s underlying profit.

In a note to clients, Morgan Stanley says the results are underpinned by a lift in same store sales guidance for Australia and Europe.

“The other key takeaway was the added conviction on the roll-out of the online ordering platform in France, the new French commissary and GPS tracker in Netherlands all being operational by end FY16,” Morgan Stanley says.

“In addition, the digital project pipeline is expanding, with 40 new projects to be delivered in ANZ.”

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