Domino’s is getting pricey

Article Excerpt

DOMINO’S PIZZA $78.27 (New York symbol DPZ; TSINetwork Rating: Average) (734-930- 3030; www.dominos.com; Shares outstanding: 55.7 million; Market cap: $4.4 billion; Dividend yield: 1.3%) reported earnings of $0.78 a share in the three months ended December 29, 2013. That’s up 21.9% from $0.64 a year earlier. Sales gained 5.0%, to $566.5 million from $539.7 million. Same-store sales rose 7.0% internationally and 3.7% in the U.S. The company continues to pay down its long-term debt, which is now $1.5 billion, or a manageable 34% of its market cap. The outlook for Domino’s is positive, but the stock has jumped over 57% for us in the last year. It now trades at a high 28.0 times its forecast 2014 earnings of $2.80 a share. Domino’s Pizza is a hold. hold…