Domino’s Outlook Is Positive

Article Excerpt

DOMINO’S PIZZA $13.25 (New York symbol DPZ; SI Rating: Average)(734-930-3030; www.dominos.com; Shares outstanding: 62.0 million; Market cap: $821.1 million) reported 3.3% lower revenues in the three months ended September 30, 2007, to $337.3 million from $326.7 million. Excluding one-time items, earnings per share fell 50%, to $0.17 from $0.34. Earnings suffered due to higher labor, food and packaging costs, combined with weak U.S. consumer demand. Domino’s continues to implement marketing and operating programs to improve its sales in the United States. It also has lots of room for expansion in international markets. Lower interest rates should also boost consumer confidence and spending on discretionary items such as pizza. Domino’s Pizza is still a buy. buy…