Topic: Growth Stocks

Domino’s Pizza $112.95 – New York symbol DPZ

DOMINO’S PIZZA $112.95 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3008; www.dominos.com; Shares outstanding: 54.6 million; Market cap: $6.1 billion; Dividend yield: 1.1%) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 12,100 outlets in the U.S. and 80 other countries. Franchisees run most of these stores.

In the three months ended September 6, 2015, the company’s earnings per share rose 6.3%, to $0.67 from $0.63 a year earlier.

Sales gained 8.5%, to $484.7 million from $446.6 million. Same-store sales rose 7.7% internationally, but more important, they increased 10.5% in the U.S., home to most of the company’s stores.

Domino’s continues to profit from its move into ordering online and through smartphone apps. Roughly half of its sales now come from digital orders, and half of those are from mobile devices. The popular Domino’s Tracker app lets customers follow their pizza from the time they place their order through prepping, baking, boxing and delivery.

The company continues to pay down its long-term debt, which is now $1.5 billion, or a manageable 25% of its market cap.

Domino’s outlook is positive, but it trades at a high 28.2 times forecast 2016 earnings of $4.00 a share.

Domino’s Pizza is a hold.

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