S&P Downgrades Domino on Price Appreciation.

S&P downgraded Domino’s Pizza (NYSE: DPZ) from 5 stars to 4 stars. It seems that the shares may be more popular than their Pizza in 2010. If you made some dough trading Domino’s perhaps you can leave the delivery man an extra large tip.

“Our opinion change primarily reflects the sharp rise in Domino shares (NYSE: DPZ) so far in 2010, leaving the stock somewhat less undervalued in our view.

Domino’s has benefited from the positive publicity surrounding its new dough and sauce recipes, as well as from the accompanying advertising in which it highlights consumers historically less-than-excellent opinion of Domino’s pizza. While it remains to be seen what market share pickup might accrue from the recipe reformulations, Domino’s continues to deleverage its balance sheet. We raised our discounted cash flowbased
target price by $2 to $14.”