Domino’s Pizza, Inc. (DPZ) recently hit a new 52-week high on the company’s better than expected Q4 results that were driven by a hot, new pizza recipe that is creating a buzz on the Street.
Company Description
Domino’s Pizza, Inc. through its subsidiaries, operates as a pizza delivery company in the United States and internationally. The company was founded in 1960 and has a market cap of $812 million.
Fourth-Quarter Results
Domestic same-store sales were up 1.4% while international same-store sales were up 3.9%, helping produce a total revenue gain of 8.1% from last year. Earnings came in ahead of expectations at 30 cents, 20% better than the Zacks Consensus Estimate. Domino’s has been consistent over the last year, beating in all 4 quarters by an average of 14%.
Domino’s paid down some of its debt during the quarter, repurchasing $49 million in senior notes for a year-long total of $189 million. As it stands, the company has a total of $1.57 billion in debt with $42 million in unrestricted cash and equivalents.
Estimates
Estimates jumped higher on the good quarter, with the current year adding 14 cents to $1.10. The next-year estimate is pegged at $1.23, a solid 12% growth projection.
In spite of recent gains, this stock still has value, trading with a forward P/E multiple of 13X, a discount to the overall market.
The Chart
Shares of DPZ have been surging for the last few months after jumping above a key level of resistance just above $10 in mid January. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
