February 21, 2018 / 10:34 AM / 10 months ago

BUZZ-MS and CS don't see Restaurant Brands buying Domino's Pizza

** Morgan Stanley and Credit Suisse both say it is unlikely that Restaurant Brands would buy Domino’s Pizza

** QSR, parent of Burger King’s and Tim Hortons, is putting together a bid to buy Domino’s, Brazil Journal reported Tuesday

** Reuters was not immediately able to verify the report, which helped DPZ stock hit a record high on Tuesday

** MS analysts say DPZ would not be a fit for QSR as it has neither excess G&A to be cut nor a subscale international operation that QSR could grow to create shareholder value

** Credit Suisse says that it believes a merger is unlikely, also noting a possible culture clash, DPZ trading premium and the already high leverage at both companies

** DPZ’s Q4 profit topped expectations and revenue missed; MS notes the market had been bracing for this possible slowing since the Fall

** DPZ fell as much as 5.6 pct on Tuesday, before reversing course to rise as much as 2.8 pct; it ended up 0.3 pct

** MS says intraday reversal was likely more the bear thesis catalyst running its course than the Brazil Journal report, but says takeover speculation may influence how DPZ trades near term (Reporting by Savio D’Souza)

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