Here’s our Pick of the Month – July 2010

Article Excerpt

DOMINO’S PIZZA $12.96 (New York symbol DPZ; SI Rating: Average)(734-930-3030; www.dominos.com; Shares outstanding: 59.1 million; Market cap: $785.7 million; No dividends paid) is the world’s largest chain of pizza stores that offer takeout and delivery. Domino’s operates 9,036 stores in the U.S. and over 60 countries. Franchisees run most outlets. Excluding one-time items, Domino’s earnings per share jumped 75% in the three months ended March 28, 2010, to $0.35 from $0.20. Sales rose 18.4%, to $381.1 million from $321.8 million. U.S. same-store sales rose 14.3%. International same-store sales gained 4.2%. The company’s labour, rent and interest costs fell during the quarter. These savings were only partly offset by higher food ingredient prices. Domino’s continues to boost its sales by aggressively marketing its “New Inspired Pizza.” The company has changed its main pizza recipe by adding seasoned crusts, as well as new tomato sauces and cheeses. As well, its express Internet ordering system, which lets customers track their orders, has proven very popular. The…