Strong brands, but hold off for now

Article Excerpt

DOMINO’S PIZZA $161.57 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3008; www.dominos. com; Shares outstanding: 48.1 million; Market cap: 7.8 billion; Dividend yield: 0.9%) is the world’s largest chain of pizza stores that offers takeout and delivery. It operates 13,200 outlets, in the U.S. and 80 other countries. Franchisees run most of these stores. In the three months ended September 11, 2016, the company’s sales rose 16.9%, to $566.7 million from $484.7 million a year earlier. Same-store sales rose 13.0% in the U.S., the company’s largest market. Internationally, same-store sales rose 6.6%. Revenue increases helped to lift overall earnings: profit rose 24.8%, to $47.2 million from $37.8 million a year earlier. Due to fewer shares outstanding, earnings per share jumped 43.3%, to $0.96 from $0.67. Domino’s outlook remains positive, and its $1.52 dividend yields 0.9%. The company still has lots of room for expansion, especially in emerging markets. But the stock is up 57% in the past year, and it now trades at…