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Topic: Growth Stocks

Growth stock picks: New pizza recipe continues to pay off for Domino’s

Domino’s Pizza Inc., symbol DPZ on New York, is the world’s largest chain of pizza stores that offer takeout and delivery. Domino’s operates 9,379 stores in the U.S. and over 70 other countries. Franchisees run most of these outlets.

Domino’s is one of the growth stock picks we analyze in Stock Pickers Digest, our newsletter for aggressive investing.

In the three months ended June 19, 2011, the growth stock pick’s earnings rose 11.5%, to $25.2 million, or $0.40 a share. A year earlier, it earned $22.6 million, or $0.37 a share. Sales rose 6.2%, to $384.9 million from $362.4 million. Same-restaurant sales rose 4.5% in the U.S. and 7.4% internationally. The consensus estimates were for earnings of $0.36 a share on sales of $372 million.

The company paid more for food ingredients, but that was offset by lower costs for labour, rent and interest.

Domino’s continues to boost its sales by aggressively promoting its “New Inspired Pizza.” The company has changed its main pizza recipe by adding new tomato sauces and cheeses, as well as seasoned crust.

We updated our advice on Domino’s and four other growth stock picks that may be appropriate for the part of your portfolio you devote to aggressive investments in our July 29, 2011, Stock Pickers Digest hotline, which you can immediately view when you take a 1-month free trial to Stock Pickers Digest. Click here to learn how you can start profiting from Stock Pickers Digest right away.

(Note: If you are a current Stock Pickers Digest subscriber, please click here to view Pat’s recommendation. Be sure to log in first.)

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