Both of these lead in digital technology: Domino’s Pizza and Chipotle Mexican Grill

Article Excerpt

With COVID-19, both Domino’s and Chipotle dropped along with the market. But each has used a savvy strategy to rebound and climb to new highs. We think both companies are well-positioned to capitalize on their popular food offerings to keep attracting more dine-in, pick-up and takeout customers. We see both stocks as buys. DOMINO’S PIZZA $394.80 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares outstanding: 38.8 million; Market cap: $15.5 billion; Dividend yield: 1.0%) lets investors tap the world’s largest chain of pizza stores offering takeout and delivery. Domino’s operates over 17,644 outlets, in the U.S. and 85 other countries. Franchisees run most of these stores. In the three months ended January 3, 2021, the company’s sales rose 17.9%, to $1.36 billion from $1.15 billion a year earlier. Strong customer ordering during the COVID-19 pandemic drove the sales gain. That revenue increase helped to lift profit: excluding one-time items, earnings per share jumped 10.5%, to $3.46 from $3.13. Domino’s strategy of protecting its profit margins…