Topic: How To Invest

Power Growth Investor Hotline – Friday, October 9, 2020

Article Excerpt

DOMINO’S PIZZA INC., $390.95, remains a buy. Through their shares, investors gain exposure to the world’s largest chain of pizza stores offering takeout and delivery. The company (symbol DPZ on New York) operates 17,256 outlets, in the U.S. and 85 other countries. Franchisees run most of these stores. The stock dipped 9% this week after the company reported lower-than-expected quarterly earnings due to rising food and other costs. In the three months ended September 6, 2020, sales rose 17.9%, to $967.7 million from $820.8 million a year earlier. That beat the consensus forecast of $954.9 million. The COVID-19 pandemic spurred strong demand for fast-food deliveries. Same-store sales jumped 17.5% in the U.S. and gained 6.2% in international markets. Thanks to the higher sales, earnings per share improved 21.5%, to $2.49 from $2.05. Even so, that fell short of the consensus estimate of $2.73. Rising employee costs and COVID-19-related expenses cut Domino’s operating margin (gross profits divided by sales) in the quarter to 16.8% from 17.4%…