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Here’s Why Domino’s Pizza Shares Are on Fire

February 25, 2016

Domino's Reports Almost 20 Percent Increase In Quarterly ProfitsDomino's Reports Almost 20 Percent Increase In Quarterly Profits
The Domino's logoPhotograph by Justin Sullivan — Getty Images

Domino‘s Pizza reported a higher-than-expected quarterly profit as steady growth in the United States helped to offset the impact of a strong dollar.

Domino‘s (DPZ) shares were up 5.4% at $124 in premarket trading on Thursday.

Sales at U.S. company-owned and franchised restaurants open at least a year rose 10.7% in the fourth quarter ended Jan. 3.

The Ann Arbor, Michigan-based company’s international same-restaurant sales rose 8.6%, excluding the impact from a stronger dollar.

The average value of the dollar against a basket of currencies was 11.7% higher in the fourth quarter compared with the same quarter last year.

The company’s net income rose to $62.76 million, or $1.18 per share, in the quarter, from $48.03 million, or 85 cents per share, a year earlier.

Recapitalization expenses, including debt issuance and interest costs, reduced profit by 10 cents per share in the latest quarter.

Excluding items, the company earned a profit of $1.15 per share.

The company’s total revenue rose 15.3% to $741.18 million. Analysts on average had expected revenue of $707 million, according to Thomson Reuters I/B/E/S.

Domino‘s also boosted quarterly dividend to 38 cents per share from 31 cents.