Investors should be on board when Domino’s surges anew

Article Excerpt

Domino’s soared to a new all-time high of $382 in mid-February. But even with the recent market fall, it has only dropped to where it was before that leap. The jump came from a stellar quarter of earnings spurred by changes that, coincidentally, will serve it very well in the current “social distancing” environment. DOMINO’S PIZZA $290.00 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares o/s: 39.0 billion; Market cap: $11.3 billion; Divd. yield: 1.1%) is a buy. The company made $3.13 a share in the latest quarter, up 19.4% from $2.62 a year earlier. That beat the consensus estimate of $2.93. Domino’s strategy of protecting its profit margins and customer relationships by continuing to do all its own delivery is paying off. It’s one of the biggest fast-food chains to refuse to work with outside food-delivery companies such as DoorDash and Grubhub. Domino’s is also boosting its carryout business, which is more profitable than taking pizza to customers. The company has now started a service…