Domino’s Pizza serves up tasty dish for investors
Fast food market leader Domino’s Pizza released fourth quarter earnings for 2016 at the end of February, demonstrating a business far more appealing, even, than the famous pizzas upon which it is based. The company beat high expectations from analysts and investors alike, and extended its winning streak incredibly. To date, Domino’s share price is up a solid 18% this year – already almost half way to 2016’s none-too-shabby total of 43%, and we’re only in March!
Domino’s Pizza is up 18% year-to-date
SOURCE: Yahoo Finance
U.S. same store sales were up 12% from the year-ago quarter (higher than expected), while internationally, the figure was 4.3% (slightly lower than expected). Over the course of the full year, these figures become 10.5% and 6.3%, respectively. Incredibly, Domino’s can now lay claim to consistent same store growth of 23 consecutive quarters domestically (in the U.S.), and a massive 92 consecutive quarters internationally!
Driving forces of the company’s success this quarter include strong growth in its app and website offerings, proving that ecommerce is even affecting the way we eat.
On the earnings call, Domino’s CEO J. Patrick Doyle, praised both staff and management, saying:
“When I think about 2016, two things absolutely stand out: first, the global alignment around our steady approach, based on continued fundamental strength and our long-term mentality; and second, the relentless energy and passion demonstrated by our franchisees, team members, and leadership in once again facing the challenge of sustained success head on.
“I am frankly not completely surprised by this, when keeping in mind who and what we are: true pizza people with an uncommon passion for what we do. Over 90% of our domestic franchisees started as drivers, pizza-makers, and hourly workers in our stores. And this home-grown culture shapes so much of what we do and how we do it.”
Dominion holds Domino’s Pizza in its Global Trends Managed Fund.
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