Domino's Pizza (NYSE:DPZ) shares rose more than 1% intra-day today after UBS analysts raised their price target for the company to $600 from $570 while maintaining a Buy rating.

The analysts believe that Domino's shares remain appealing due to the company's continued sales momentum, strong customer traffic, and a clear path of catalysts that support sustained outperformance compared to other quick-service restaurants (QSRs). They expect Domino's to maintain multi-year sales growth in the U.S., driven by a robust value proposition, enhancements in digital and loyalty programs, improved service levels, menu innovation, effective marketing, and partnerships with third-party aggregators.

The analysts also highlighted Domino's competitive advantage in the current market environment, pointing to attractive promotional offers, below-industry pricing in recent years, and everyday value that makes it one of the most affordable options for feeding a family. Their review of recent Numerator data, along with management commentary, strengthens their confidence in strong customer demand across various income levels, including lower-income consumers.

Despite a 25% increase in shares year-to-date, the analysts see further upside potential as Domino's continues to lead in traffic and same-store sales momentum. The company is also set to accelerate unit growth and leverage a compelling catalyst path to support multi-year earnings growth.