Domino’s Pizza, Inc.’s (NYSE:DPZ) shares have been on fire over the past year, with shares rallying over 64% from a low of $69.13 back in August 2014, to a high of $114 back in late April.  Domino’s reported earnings on April 23rd, citing operating income of $94 million, which increased by 12% from $84.2 million vs. the same quarter a year ago in 2014.

Technology Innovation

Domino’s has been on the forefront of the technology revolution in the restaurant industry.  Last year they launched an app for your smartphone that allows you to order your pizza using a “Siri-like” system, named “Dom”.  According to the Associated Press, online ordering accounts for 40% of Domino’s sales.  The chain’s CEO Patrick Doyle said in an interview that “people who order digitally also tend to spend more and return with greater frequency because they like the convenience.”  The app has been downloaded over 10 million times.  Because of their continued research and development, not to mention great tasting pizzas, subs, and many other items, they continue to be a leader in the pizza space inside the restaurant industry.


Beating the Competition

Domino’s same store sales growth for the U.S. for the 1st quarter 2015 increased 14.9% compared to 4.9% in Q1 2014.  International same stores sales growth grew 7.8% from last year.  In comparison, Pizza Hut, a division of YUM Brands Inc., reported negative 1% same store sales decline during the same period.  While Pizza Hut is the leader in terms of sales among the major pizza chains with 14.79% of the U.S. pizza market, Domino’s is a close 2nd and climbing, with 9.86% of the market, representing $3,798,538,608 in sales.  This is according to CHD Expert and Technomic.

Technical Analysis

Shares of DPZ jumped 13% to $114, after the company reported stellar numbers for the 1st quarter of 2015.  Since the jump after earnings, the stock pulled back to $105.25, before surging another 5 points to $110.32 in mid day trading today.  If DPZ can surge above $111 with high sustained volume, it could setup to retest or even break it’s 52 week high of $114.  It has been respecting the 20 day simple moving average since late April when it broke out of a consolidation pattern on the earnings release.  If that doesn’t happen and the stock pulls back, look for support at the 20 day moving average around $105.67.