This Weeks Free Stock Pick - Investing in Restaurant Earnings Growth
Domino's Pizza, Inc. (NYSE:DPZ) posted another set of stellar quarterly results recently despite a tough consumer environment. Shares of this Zacks Rank #1 (Strong Buy) soared to a new all-time high as analysts raised full year estimates.
Domino's is one of the world's largest pizza restaurant brands with 11,250 stores in 75 global markets. It's international sales now account for more than 50% of the company's revenue.
Its one of the leaders in the restaurant industry in deploying digital channels, such as smartphone and iPad apps, to take sales.
In June 2014, Domino's debuted voice ordering for its iPhone and Android apps.
Another Earnings Beat
On Oct 14, for the fourth straight quarter, Domino's beat the Zacks Consensus Estimate for the third quarter. Earnings were 63 cents compared to the Zacks Consensus Estimate of 61 cents.
It has an impressive earnings surprise track record, only having missed twice in the last 5 years.
But it wasn't earnings which impressed investors.
Domestic same store sales jumped 7.7% year over year while international same store sales rose 7.1%. It was the 83rd consecutive quarter of international same store sales growth.
These same store sales numbers put Domino's among the elite of the restaurant brands right now, along with the likes of Chipotle.
Total revenue rose 10.5% due to higher supply chain revenue from increased volumes in the supply chain centers and elevated commodity prices, especially cheese, as well as increased sales of equipment and supplies to stores that are reimaging.
Shares Jump to New High
Shares surged to a new all-time high on the results.
But if you're buying them now, you're not getting them cheap.
Domino's trades with a forward P/E of 28.8, the highest forward P/E since the company went public in 2004.
It does have growth, however. It has an impressive earnings growth history over the past 5 years.
Analysts expect earnings to rise another 18.6% in 2014 and 17% in 2015.
If you're willing to pay up for the growth and you're looking for a consumer-play, then Domino's is certainly one to keep on your short list.
Invest2Success "Profit Rockets" Stock Picks
Free Trial - Receive daily low-risk high-reward SP500 NYSE Nasdaq buy-long and short-sell stock picks that are experiencing strong increasing and decreasing earnings, that include buy sell entry, stop-loss, take profit area price targets, and trade management information to your email inbox.
Van Tharp Institute
Investing Trading Home Study Programs & Live Seminars Workshops
Dedicated to cutting edge, high quality professional educational investing trading programs for traders and investors providing a road map for financial freedom. The finest investing trading education in the financial universe. Dr Van Tharp is one of the orginal Market Wizards, and referred to as the Traders Coach.
Track n Trade CandleStick Auto-Recognition Plug-in
Quickly identify candlestick patterns without thinking. With Track 'n Trade, you have the ability to click, and select your favorite candle patterns, and have Track 'n Trade find, identify, and even auto-trade each signal through our famed Autopilot Trading System.
Steve Nisons Candlestick Charting Intensive Training and Software
for Profitably Trading Stocks Forex Futures Commodities
Use the CandleScanner trading software to automatically scan for profitable trading setups on any timeframe. Stock forex and futures candlestick trading courses to throughly understand how to profit from candlestick chart patterns. Free newsletter and live trading webinars. Steve Nison is the authority on trading and profiting using candlesticks.
Stock Option Forex Futures Training Seminars Webinars Workshops
Click Here For The Complete 2014 Schedule
Professional investors traders teaching successful low-risk high-reward trade strategies. Power profit secrets for stocks, options, forex, futures investing trading success. Or avail of Home Study Courses and or Trading Softwares available to improve your investment returns.