Wait for profits to catch up to share price

Article Excerpt

DOMINO’S PIZZA $110.92 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3008; www.dominos.com; Shares outstanding: 55.2 million; Market cap: $6.1 billion; Dividend yield: 1.1%) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 11,700 outlets in the U.S. and 75 other countries. Franchisees run most of these stores. In the three months ended March 22, 2015, the company’s earnings per share jumped 19.1%, to $0.81 from $0.68 a year earlier. Sales gained 10.6%, to $502.0 million from $453.9 million. Same-store sales rose 7.8% internationally— but more important, they rose 14.5% in the U.S., home to most of the company’s stores. Domino’s continues to profit from its move into ordering online and through smartphone apps. Half of its $2.0 billion of 2014 sales came from digital orders, and half of those were from mobile devices. The popular Domino’s Tracker app lets customers follow their pizza from the time they place their order through prepping, baking, boxing…