Domino's stock hits record, $1B buyback in place

Fox Business Flash top headlines for July 22

Check out what’s clicking on FoxBusiness.com.

Investors are chowing down on shares of Domino's Pizza, the world's largest pizza chain, after the restaurant reported strong quarterly results and announced a fresh $1 billion share repurchase program.

The stock is on pace to close at a fresh record after total global sales jumped 17.1% as both U.S. and international sales saw strong growth momentum which in part was credited to "our dynamic franchisees who are dedicated to serving their local neighborhoods," said Ritch Allison, Domino's CEO, in the financial release. 

U.S. sales inched up 3.5%, while international sales gained 13.9%

For the second quarter, net income fell 1.7% to $116.6 million or $3.06 per share, excluding items, the chain posted $3.12 per share, beating the $2.87 estimate polled by Refinitv. 

Additionally, the company's board of directors authorized a new share repurchase program to repurchase up to $1 billion of the company's common stock. This repurchase program replaces the company's previously approved $1 billion share repurchase program, which was completed by the end of the second quarter. 

Shares have gained nearly 40% this year, outstripping the S&P 500's 16% gain through Thursday.

In April, billionaire activist investor Bill Ackman disclosed a 6% stake in the company after his Pershing Square Holdings' began buying Domino’s shares in March 2020 near $330. 

BILLIONAIRE ACKMAN TAKES SLICE OF DOMINOS

Shares of rival Papa John's rose in tandem. 

Source: Read Full Article