Domino’s Pizza Enterprises [ASX:DMP] operates retail food outlets and a franchise service. DMP holds the master franchise rights for the Domino’s brand in Australia, New Zealand, France, Belgium and the Netherlands.
The company has 970 stores across five countries.
The share price closed 4.69% higher on Wednesday.
A bad night in the US overnight didn’t stop DMP from rising today. The DOW closed down 1.1% last night, however at one point the index was lower by 460 points.
As a result, the Aussie market opened in the red. The S&P/ASX200 traded as low as 83 points at lunch.
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In contrast Domino’s opened up 1.2% and kept climbing.
Why?
It’s a solid company. Revenues for 2014 nearly doubled and DMP paid a 36.7 cent dividend.
In a short five years, the stock price has climbed a massive 489%.
The question now is whether Domino’s can continue that growth.
Perhaps the massive triple digit gains are gone. Nonetheless, there is still a growth story here.
Last year, DMP acquired a 75% stake in Domino’s Pizza Japan. When DMP bought this share, there were 260 Domino’s stores in Japan. In less than 12 months, DMP have added another 60.
Did you miss the growth story? Perhaps the biggest gains are gone with the pizza company. Over the next five years DMP plan to have a total of 520 Domino’s stores across Japan.
The expansion into Japan is likely to see the share price climb higher. However it’s unlikely the stock will achieve another 400% price increase from here.
For would be buyers of this company its current price level of $26.80 is expensive.
If you are interested in this stock aim to pick it up on a market dip of around $25.
Shae Smith+
Editor, Money Weekend
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