Investors get the door, its Domino’s! This morning, Domino’s Pizza Inc (NYSE:DPZ) reported its second quarter financial results and if you were not considering investing in the world’s leading pizza delivery company, you are now.
Domino’s posted its 74th consecutive quarter of same store sales growth at an impressive 5.7% and added another 111 stores to its portfolio. Within the United States same store sale growth also increased 1.7% despite the suffering US economy. Due to the excellent business model and excessive free cash flow the company was also able to repurchase $36.9 million shares and has replenished its share repurchase program funding for the year to $200 million.
The revenue numbers missed street estimates by $11.8 million on $376.1 million revenue but DPZ was able to beat the street consensus earnings per share by a narrow $0.01 margin on $0.47 net income per share. DPZ earnings were flat over the previous quarter but increased by 11.3% over 2011 levels in the same quarter. This marks Domino’s fifth consecutive quarter of improving margins.
Domino’s, founded in 1960 has more than 9,700 stores in 70 countries around the world and boasts that it is the only pizza delivery company with location in all 50 states. Their menu includes, pizza, chicken wings, sandwiches, and pasta and first broke into international waters in Winnipeg, Manitoba and now has over 3,500 corporately run or franchised stores outside the United States.
DPZ is up 2.53% before the bell to $32.80, returning to Friday levels.
Foodbeat’s take: I have watched DPZ from a distance for a while and in terms of value for the investor it leads the pack in the pizza industry. Look for Domino’s to continue that in the remainder of the year as the company buys back shares and possibly increase dividend payments.
Source(s): Fox Business, MarketWatch