With Shares Up Nearly 30% in the Last Month, Are Domino's Investors Getting Ahead of Themselves?
The narrative that Domino's (NYSE: DPZ) may be morphing into a growth stock again emerged in a single trading session on Thursday, as shares of the global pizza baker soared 25% at mid-day, bringing the company's appreciation in February alone to more than 30%.
The company's fourth-quarter earnings catalyzed its impressive share rise, as U.S. same-store sales improved by 3.4% year over year, surpassing investor expectations. Comparable sales have decelerated significantly over the past year as Domino's has battled rising competition from third-party aggregators like DoorDash, Uber Technologies' Uber Eats, and Grubhub.
Fiscal 2019 U.S. comps growth of 3.2% was less than half of fiscal 2018's comps advance of 6.6%. Nonetheless, this quarter's comps result was the fastest in several quarters, and it was supplemented by brisk new store growth, helping the company achieve year-over-year revenue expansion of 7.6%, to $1.2 billion.
Source Fool.com
