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What: Shares of pizza delivery specialist Domino's Pizza (NYS: DPZ) climbed 11% on Tuesday after the company's quarterly results topped Wall Street expectations.
So what: Domino's impressive fourth quarter -- earnings surged 28% -- suggests that its operating momentum isn't about to slow anytime soon. Sales in the U.S. have jumped nicely since the company changed its pizza recipe in late 2009, and management now seems to be channeling that success overseas.
Now what: Looking ahead, management now sees long-term international same-store sales growth of 3% to 6% and 1% to 3% in the U.S. "Our positive results this year provide yet more evidence that we have successfully reset the bar for Domino's Pizza," said CEO J. Patrick Doyle. "The global momentum that we are driving through our innovation, commitment to food quality and outstanding service continues to energize our franchise owners and team members and inspire their terrific performance." However, with shares now up a whopping 120% and trading at a 20-plus P/E, I'd wait for the stock to cool off considerably before digging in.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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