Domino’s Pizza (DPZ) Stock Surges on Solid Fourth Quarter Results
Shares of Domino’s Pizza Inc. were trading up +9.39 or +7.98 percent to $127.00 per share in Thursday’s premarket after the company reported better than expected results for its fiscal fourth quarter early this morning. Domino’s Pizza Inc. stock closed at $117.61, down -0.01 or -0.01 percent in Wednesday’s regular trading session.
Ann Arbor, Michigan based Domino’s Pizza was originally named DomiNicks, a small pizzeria bought in 1960 by Tom Monaghan and his brother in Ypsilanti, Michigan for $900.
The company is now one of the world’s largest food corporations and a world leader in pizza delivery. Domino’s currently has a global enterprise of 12,500 stores in more than 80 international markets with global retail sales over $9.9 billion last year. Independent franchise owners make up 97 percent of Domino’s stores and the company has recently introduced a number of online ordering apps that covers 95 percent of the U.S. smartphone market.
Domino’s reported it had earned $1.18 per diluted share in the fourth quarter, up +38.8 percent versus the same quarter one year ago. For the full year, Domino’s reported earnings per share of $3.47, an increase of +21.3 percent over 2014’s results. Revenue for the fourth quarter came to $741.2 million. Analysts expected the company to report earnings per share of $1.11 on revenue of $707.1 million.
The quarterly and full year results were negatively impacted by the company’s recapitalization completed during the fourth quarter and positively impacted by the inclusion of a 53rd week in the company’s final quarter of 2015. On an as-adjusted basis, fourth quarter earnings per share came to $1.15 while full year as-adjusted earnings per share were $3.45.
Patrick Doyle, Domino's President and Chief Executive Officer said in the company’s press release that, “Our network of strong franchisees has become even more profitable during these years of continued positive same store sales growth. Great store economics around the world have led to accelerated unit growth. It's a positive cycle and the momentum continued through 2015.”
Domino’s reported domestic same store sales grew +10.7 percent in the quarter versus the same period last year, with full year same store sales growth of +12.0 percent. The International division reported a same store sales increase of +8.6 percent in the quarter with a +7.8 percent rate of growth for the full year. Domino’s opened a total of 901 new stores in 2015, with 768 net new stores internationally and 133 new stores domestically.
Domino’s Pizza stock has been range bound between $100 and $120 per share for the last year. After this morning’s premarket action, the stock will open at a new 52 week high and clearly broken out of its previous range.
Other News About DPZ
Domino's® Opens 1,000th Store in India
The new store opened on February 5th in a shopping mall in Janakpuri, Delhi.
You Can Now Order Pizza With Your Apple Watch
The Apple Watch app is the latest addition to Domino’s pizza ordering and tracking technology.
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