Two restaurant chains with gains ahead

Article Excerpt

During the pandemic, both Domino’s Pizza and Chipotle implemented savvy strategies to support their businesses. Now, as the economy normalizes, we think each is well-positioned to capitalize on its popular offerings to keep attracting dine-in, pick-up and takeout customers. Each stock also remains a buy. DOMINO’S PIZZA, $325.66 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares o/s: 35.4 million; Market cap: $11.6 billion; Yield: 1.5%), gives you exposure to the world’s largest chain of pizza stores offering takeout and delivery. The company (symbol DPZ on New York) operates 19,880 outlets, in the U.S. and 85 other countries. Franchisees run most of these stores. In the three months ended January 1, 2023, the company’s sales rose 3.6%, to $1.39 billion from $1.34 billion a year earlier. Same-store sales rose 0.9% in the U.S., while they rose 2.6% internationally. Excluding one-time items, earnings per share rose 4.2%, to $4.43 from $4.25. All in all, the pandemic was a boon for top pizza chains like Domino’s as consumers…