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Why Domino’s (ASX:DMP) and this ASX share just surged to record highs

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The S&P/ASX 200 Index (ASX: XJO) continued its positive run on Monday and reached a 100-day high.

While this is very positive, some ASX shares are doing even better than the index.

For example, the two ASX shares listed below have recently hit record highs. Here’s why they are on fire right now:

ARB Corporation Limited (ASX: ARB)

The ARB share price hit a record high of $32.88 on Monday. Investors have been fighting to get hold of the 4×4 accessories company’s shares since the release of a very positive first quarter update earlier this month. That update revealed that strong demand in export markets led to unaudited sales revenue growth of 17.7% for the first quarter of FY 2021.

Also growing very strongly was its profit before tax. It came in at $29.7 million for the quarter. This compares very favourably to ARB’s profit before tax of $34.4 million that it recorded in the entire first half of FY 2020. And while management advised that there is too much uncertainty for it to provide guidance, it appears confident that a strong first half profit result is coming.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price continued its positive run and reached a new record high of $91.04 yesterday. The pizza chain operator’s shares have been in demand with investors this year thanks to its strong performance during the pandemic. This led to Domino’s delivering a 12.8% increase in network sales to $3.27 billion in FY 2020.

Pleasingly, FY 2021 started strongly, with like-for-like sales up 11% in mid-August. This appears to have set the company up to deliver strong profit growth this year. Also catching the eye of investors was the company’s long term expansion plans. It advised that it is aiming to grow its network to 5500 stores by 2033. This is more than double its current store network.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Limited and Domino's Pizza Enterprises Limited. 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 Scott Phillips.

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