Bloomberg: Domino's deserves its tech-style stock price valuation

|About: Domino's Pizza, Inc. (DPZ)|By:, SA News Editor

Domino's Pizza (NYSE:DPZ) jumped to a 52-week high on the way to close nearly 5% higher today, after reporting a 13% increase in Q3 U.S. sales from a year earlier, far outpacing rival Pizza Hut (NYSE:YUM) and bucking the broader restaurant industry trend of weakening sales.

For the first time in the company's history, DPZ is bringing in more sales through smartphones, watches, virtual assistants and other digital channels than from diners walking into stores or phoning in orders; BofA Merrill estimates 55% of its sales were digital in Q3, vs. just 20% for the restaurant industry.

Some Wall Street analysts have started to assign DPZ tech-style stock price targets based on the rapid growth of its digital sales, and Bloomberg's Shelly Banjo says 63% of analysts covering the company have raised their price targets in the past month.