Could Domino’s Stock Keep Climbing?


Sep. 26 2018, Updated 3:55 p.m. ET

Stock price surges

During the first half of 2018, Domino’s Pizza (DPZ) posted revenue growth of 24.9% and EPS growth of 48.8%. Its strong sales and EPS growth boosted its stock, which has risen 53.9% this year.

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Revenue growth

In the first half of 2018, Domino’s revenue grew YoY (year-over-year) to $1.56 billion from $1.25 billion, driven by new accounting standards, the addition of 905 restaurants, and positive SSSG (same-store sales growth). The new accounting standards boosted the company’s revenue by $163.1 million.

The company posted domestic SSSG of 7.6% and international SSSG of 4.4% in H1 2018. In the domestic market, Domino’s saw 5.8% SSSG at company-owned restaurants, and 7.7% SSSG at franchised restaurants.

EPS growth

In the first half of 2018, Domino’s adjusted EPS grew 48.8% to $3.84, driven by revenue growth, net margin expansion, and share repurchases. The company’s net margins expanded from 10.2% in the first half of 2017 to 10.8%, driven by lower sales costs, general and administrative expenses, and tax, and partially offset by new accounting standards.


In the next four quarters, analysts expect Domino’s revenue to grow 16.6% YoY to $3.10 billion, and its EPS to rise 19.9% YoY to $8.63. Next, we’ll look at Yum! Brands’ (YUM) performance in the first half of 2018.


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