Why Domino’s Pizza Enterprises Ltd shares have stormed higher today

Much to the relief of its long-suffering shareholders, the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has had a strong finish to the week.

In late afternoon trade the pizza chain operator’s shares are up over 4% to $49.92. This brings its one-month return to an impressive 22%.

Why are its shares higher today?

With no news out of the company, it appears as though today’s gain is attributable to news out of its parent company overnight.

The US-based Domino’s Pizza reported its second-quarter results on Thursday and beat analysts’ expectations on both the top and bottom lines.

A key driver of this stronger-than-expected growth was the performance of its international stores which delivered same store sales growth of 5.1% on the prior corresponding period.

As the leading international Domino’s franchise, this could be a sign that business is booming for the locally listed Domino’s.

Should you invest?

I continue to believe that Domino’s is a great investment option at the current share price.

Although FY 2017 was a big disappointment, it does appear as though things are improving and FY 2018 will be a return to form.

And considering its plan to more than double its store footprint over the next eight years, I believe there’s still significant growth ahead for this quality company.

All in all, I would class it as a buy along with industry peer Collins Foods Ltd (ASX: CKF).

As well as Domino's and Collins Foods, I think these top growth shares could be in the buy zone.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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