Berenberg Rates Domino’s Pizza ‘Buy’ on Chick ’N’ Dip Growth

Berenberg has initiated coverage of Domino’s Pizza Group with a “buy” rating and a 291 pence price target, highlighting the UK pizza franchisor’s Chick ’N’ Dip menu as a potential catalyst for earnings growth.

Domino’s, which controls the master franchise rights for the brand across the UK and Ireland, closed at 212 pence on Oct. 5, valuing the company at roughly £823 million.

Berenberg analyst Karl Burns said Chick ’N’ Dip, introduced in February 2026, appears to be generating additional revenue rather than simply replacing existing pizza purchases. The brokerage estimates that 80%-90% of Chick ’N’ Dip sales are incremental, while average order value has climbed to £36 from £26. Domino’s has reported that 87% of customers buying Chick ’N’ Dip also ordered pizza.

While Berenberg’s base-case forecasts are broadly aligned with market expectations, its bullish scenario suggests substantial upside. Assuming stronger Chick ’N’ Dip adoption and more incremental orders, Domino’s 2029 earnings per share could exceed consensus estimates by 37%.

Like-for-like sales rose 4.5% in 2026, while total orders increased 2.3%, according to Berenberg. The brokerage believes Chick ’N’ Dip contributed to the improvement, although Domino’s management has been cautious about attributing growth directly to the new offering.

Domino’s has also strengthened its competitive position, capturing 53.8% of the approximately £3 billion UK pizza market after gaining more than 700 basis points over the past year. Rival operators have reduced their footprints, including Pizza Hut UK and Franco Manca.

Berenberg expects weaker restaurant spending to potentially favor takeaway and delivery demand. Domino’s shares currently trade at about 12 times estimated 2026 earnings and offer a dividend yield near 5%.

The brokerage expects a wider Chick ’N’ Dip rollout could trigger earnings upgrades. Key risks include weaker customer adoption, cannibalization of pizza sales, softer consumer demand and rising costs that could squeeze margins.