Two restaurants chains—two different risks

Article Excerpt

DOMINO’S PIZZA $126.38 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3008; www.dominos.com; Shares outstanding: 50.2 million; Market cap: $6.3 billion; Dividend yield: 1.2%) is the world’s largest chain of pizza stores that offers 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 March 27, 2016, the company’s earnings per share rose 9.9%, to $0.89 from $0.81 a year earlier. Sales gained 7.4%, to $539.2 million from $502.0 million. Same-store sales rose 7.9% internationally; they increased 6.4% in the U.S.—home to the majority of Domino’s outlets. The company continues to profit from its move into ordering online and through smartphone apps. About 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 the order through to its baking, boxing and delivery. With the…