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

February 25, 2016, 2:01 PM UTC
Domino's Reports Almost 20 Percent Increase In Quarterly Profits
Photograph 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.