One of these restaurant chains is a buy

Article Excerpt

DOMINO’S PIZZA $273.58 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3008; www.dominos.com; Shares outstanding: 42.3 million; Market cap: $11.6 billion; Dividend yield: 0.8%) is the world’s largest chain of pizza stores offering takeout and delivery. It operates over 14,966 outlets, in the U.S. and 85 other countries. Franchisees run most of the stores. The company continues to profit from its investment in online ordering, including smartphone apps. Over 60% of its sales now come from digital orders, and two-thirds of those are from mobile devices. In the three months ended March 25, 2018, sales rose 25.8%, to $785.4 million from $624.2 million a year earlier. The revenue increase helped to lift overall earnings: profit rose 42.1%, to $88.8 million from $49.2 million. Per-share earnings rose 58.7%, to $2.00 from $1.26, on fewer shares outstanding. Domino’s raised its quarterly dividend by 19.6% with the March 2018 payment, to $0.55 from $0.46. The shares now yield 0.8%. The company also has lots of room to further…